Ken Rogoff Attacks ‘Crude Keynesian Stimulus”

Is the U.S. headed the way of Zimbabwe, with endless central bank monetization of the central government’s debt?

In a non-firewalled op-ed for the Financial Times, World is right to worry about US debt, which is introduced by the Op-ed editors with the sentence “America must face up to its responsibilities, writes Kenneth Rogoff”, we get [...]

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The Fiscal Cliff Looms Because Mainstream Economists Got the Strength of the Post-Crash Economy Wrong

A problem with “fiscal cliff” economic reporting is the lack of context.  It is widely said that if only the “uncertainty” of the cliff were resolved, then businesses would invest again and all shall be well.

The problem, though, is that said fiscal cliff (or, fiscal slope) is the direct result of the failure of [...]

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Insane People Run Japan

Insanity

n. Mental illness of such a severe nature that a person cannot distinguish fantasy from reality, cannot conduct her/his affairs due to psychosis, or is subject to uncontrollable impulsive behavior. (See here.)

The above is a legal definition as distinguished from the popular quote (misattributed to Albert Einstein), “Insanity is doing the same thing [...]

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Why Surpluses Evaporate (1998-2001)

This is from the Mercatus Center, adapted from an article by Charles Blahous in his e21 piece “How Did Federal Surpluses Become Huge Deficits?. According to Virginia de Rugy of Mercatus:

According to the CBO, three areas have influenced the swing from projected surpluses to actual deficits over the 2002–2011 period: (1) increased [...]

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We’ll All Be Dead By The Time This Pays Off

This is what happens when politicians allocate your precious resources instead of letting the market decide where capital should be invested. This article from the Wall Street Journal discusses the failure of the government’s investment into batteries for electric vehicles. The outcome was inevitable. As you can read below, when faced with failure, bureaucrats then [...]

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Must Read

“Working at my desk today was somewhat surreal. Global risk markets were closing out a dreadful week. Newswires were full of disconcerting articles – J.P. Morgan, Greece, Spain, Italy, China, etc. Meanwhile, CNBC was in the midst of blanket coverage of the Facebook initial public offering. Mark Zuckerberg rang the bell to open NASDAQ [...]

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Austerity Is Blamed Not Praised

This article is by Cato’s Richard Rahn. Professor Rahn is a senior fellow of the Cato Institute and the Chairman of the Institute for Global Economic Growth. He is also a weekly economic columnist for The Washington Times, and serves on the editorial board of the Cayman Financial Review. He developed the [...]

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Budget Travesty 2012

The Obama Administration released its new fiscal year 2012 budget for the federal government and it shows a projected $1.3 trillion deficit:

The projected deficit is higher than the $1.296 trillion deficit in 2011 and also slightly higher than a roughly $1.15 trillion projection released by the Congressional Budget Office last week. The budget, according [...]

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Fed Vice-Chairman Janet Yellen: QE3 ‘Appropriate’

“[S]ecurities purchases across a wide spectrum of maturities might become appropriate if evolving economic conditions called for significantly greater monetary accommodation.”

Fed Vice-Chairman Janet Yellen said today that we may need another round of quantitative easing (QE3):

Federal Reserve Vice Chairman Janet Yellen said a third round of large-scale securities purchases might become [...]

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The Hoax That Is The Infrastructure Bank

Does anyone seriously believe that the reason we have high unemployment in America is because we have a substandard infrastructure? 

Apparently the politicians in Washington believe that is so because they are trying to make a case for massive infrastructure spending in order to “create jobs” and to “prepare our economy for the 21st Century.” [...]

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Liberal Fairy Tale: Federal Spending Creates Jobs

The President is expected to announce a $300 billion spending boondoggle to “create jobs.” One-half will consist of tax cuts, including further extension of the payroll tax reduction. This is proposed despite the fact that the 2009 Recovery Act stimulus of $830 billion consisted of the same kind of things. If it worked, why are [...]

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