Keynesians Chortle in Their Joy

Now that Ben Bernanke continues to have a friend in the White House, all’s going to be well in the world- at least economically.  At least, that’s the impression large segments of the media is promoting.  

When any segment of the media and market participants are feeling so good about things that they appear [...]


The Fed: Nothing

The Fed’s Open Market Committee meeting is over and they announced that they would do—nothing.

I humbly admit that my guess that they would announce QE3 was dead wrong. Alas. The (other) pundits (most of them) were correct. Occasionally it’s good to be humbled. 

Their oracular statement was:

The Committee will closely monitor incoming information [...]


The Bernanke Bust: The Why How And When

This article is from Michael Pollaro’s The Contrarian Take, the best blog on money supply. Michael measures True (“Austrian”) Money Supply (TMS) each month as the data comes out and provides meaningful measures and interpretations of the data. I urge you to visit his site for his data and his excellent explanation [...]


Floating Exchange Rates: Unworkable and Dishonest

Milton Friedman was a proponent of so-called “floating” exchange rates between the various irredeemable paper currencies that he promoted as the proper monetary system. Many have noted that the currencies do not “float”; they sink at differing rates, sometimes one is sinking faster and then another. This article focuses on something else.

Under a gold [...]


Weak Jobs Growth Questions Recovery, Demands For QE3

The employment data from the BLS this morning shocked a lot of economists and writers because it came in much lower than expected. The consensus was for around 201,000 new jobs (February was +240,000), but the report came in at only 120,000.

Immediately came the expected headlines:

All of the above articles [...]


James Grant vs. The Fed

This article by James Grant of Grant’s Interest Rate Observer is reprinted with his kind permission. I highly recommend it. “[As Chairman of the Fed under the Ron Paul Administration] I would commission, staff and ceremonially open the Fed’s first Office of Unintended Consequences.”— JH


Piece of My Mind



The Buck Stops Here: A BRIC Wall

Already on the defensive due to a persistent failure to achieve its stated policy aims, the US Fed was subject to much fresh criticism over the past week, including from the BRIC nations, collectively the largest foreign holders of US dollar reserves. While the dollar remains the world’s pre-eminent reserve currency, [...]


Bernanke Explains Why Nothing The Fed Does Works, Without Knowing It

For those of you who have the patience to watch Ben Bernanke give a lecture at George Washington University on the origins of the Fed and the role of the Fed in “curing” the Great Depression and the lead up to the current crisis, here are the two lectures for your pleasure. We will be [...]


Where Is Superman When We Need Him The Most

Friday humor for you. Superman vs. Fiat Money!

We should nominate him for Fed Chairman because he certainly understands money. Lois obviously doesn’t.


Our Problem Is Not Insolvency: It’s Infinite Solvency

Monetary policy is now sexy. The young are into it. “End the Fed” rings out at Ron Paul’s political rallies like “We Will Rock You” used to ring out at Queen concerts.

There is, indeed, a direct relationship between the popularity of economics and monetary policy among the under 30s and the overwhelming support of [...]


Ben Bernanke And The Fat Cat Banksters

It’s not often we make a shameless plug, but in this case it is for a good cause: Art. Billy Walsh of Heckle Sketch did this funny and symbolic painting of Ben Bernanke and his fat cat friends,  ”Ben and the Fat Cat Banksters”. This is an acrylic painting and is available in several formats [...]