Bernanke Loosens Up

This excellent article by Austrian theory economist Frank Shostak appeared Friday on Mises.org. — JH

Bernanke Loosens Up

December 21, 2012

On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 [...]

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Chaos

“Can an economy that has become dependent on lies, misrepresentation, ‘fudging’ of numbers, fraud, embezzlement and a multitude of skimming and scamming operations escape the moral and financial black hole it has created ? The self-evident answer is ‘no’.”

— Charles Hugh Smith, 28 August 2012, as quoted in [...]

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Romney: The Great Deformer

 This article was sent to me by David Stockman, former Reagan Administration head of OMB, capitalist, investor, and writer. As readers know, he has been contributing articles to The Daily Capitalist over the years dealing with what he calls “The Great Deformation”, or the impact of the Fed and crony capitalism [...]

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Par For The Pathological Course

Economic policymakers are like children in that they are held only partially accountable for their mistakes and misdeeds. And just as children learn to selectively deny responsibility to get away with naughty behaviour, so policymakers learn that they, too, can conveniently disown the ‘unintended consequences’ of their actions. It is thus refreshing to see that [...]

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The Lost Bush/Obama Era Gave Us the Gold Commission

Here is John Tamny’s take on the possibility of the return to a gold-based monetary standard, and the origins of the Gold Commission. His analysis is excellent though we may disagree on his conclusions about which gold standard would be optimal. This article originally appeared on Real Clear Markets.— JH

 

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GDP Q2 2012: A Picture Of A Stagnating Economy

In their first estimate of the second quarter 2012 GDP, the Bureau of Economic Analysis (BEA) found that the annualized rate of U.S. domestic economic growth was 1.54%, down nearly a half percent from the (revised) 1.97% for the prior quarter and down over two and a half percent from the (revised) 4.10% growth rate [...]

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Caught In A Debt Trap

As with much of the euro area, the US is in a debt trap. All the politicking in DC does not change this economic fact. The federal debt is going to be devalued. Yet even now, amid a new economic slowdown, US consumer price inflation is set to remain positive following [...]

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Bernanke’s Options To ‘Get Out of the Mud’

The major issue, [Mr. Bernanke] said, is “whether or not there is in fact a sustained recovery going on in the labor market, or are we stuck in the mud?” Mr. Bernanke added a wrinkle, saying the central bank “would certainly want to react against any increase in deflation risk.”

This was from Chairman Bernanke’s testimony [...]

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Please Don’t “Get To Work, Mr. Chairman”

This week’s data builds a further case for a declining economy and likelihood of the Fed doing another round of QE. These data hit all of the Fed’s marks for action: joblessness and unemployment, declining industrial production, low price inflation and possible price deflation, and declining retail sales. These are the things that the Fed [...]

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Falling Interest Rates Destroy Capital

I have written other pieces on the topic of fractional reserve banking  duration mismatch, which is when someone borrows short-term money to lend long-term and how falling interest rates actually encourages duration mismatch. Falling interest rates are a feature of our current monetary regime, so central that any look at a graph of 10-year Treasury [...]

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Bernanke’s Choice

Federal Reserve Chairman Ben Bernanke delivered a bleak new assessment of the U.S. economy to lawmakers on Tuesday but remained guarded about what, if anything, the Fed would do about it.

Chairman Bernanke remains guarded because he’s run out of “arrows” in that metaphoric quiver that reporters use to refer to Fed policy options. [...]

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