The Trillion Dollar Coin

There has been much buzz in the past few days about a truly horrible idea.  Instead of having to negotiate with Congress to raise the debt ceiling so the Treasury Department can sell more bonds to pay for more spending, why not just mint a trillion-dollar platinum coin?  This coin would contain one ounce of [...]


The Fed: We’ll Print As Much As It Takes

I’ll have more on this shortly, but the Fed has announced an open-ended bond purchase program (QE3): “… until such improvement is achieved … “

Here is their statement: 

Release Date: September 13, 2012

    For immediate release

       Information received since the Federal Open Market Committee met in August suggests that economic activity has [...]


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




FOMC Minutes: QE3 Is “Fairly Soon”

Many participants expected that a [new large-scale asset purchase program] could provide additional support for the economic recovery both by putting downward pressure on longer-term interest rates and by contributing to easier financial conditions more broadly. In addition, some participants noted that a new program might boost business and consumer confidence and reinforce the Committee’s [...]


An Olympian Hurdle

Very little has definitively changed during the course of the financial crisis and where there has been evidence of change, very little of it seems to have been positive. Governments appear to believe that a problem of overmuch indebtedness can be resolved by the creation of more debt. Which is why [...]


Poverty Highest Since 1965

In Sunday’s USA Today there was an article on what is seen as growing poverty in America:

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, [...]


Broke Bank Mountain

Why, for example, do we need a central bank at all? A typical if feeble answer is that we need a lender of last resort. To which the answer is: why? Why do we need a government-appointed entity to support banks that get in over their heads? A typical answer is [...]


Operation Twist Will Fail — Again

A fall in interest rates cannot grow the economy. All that it can produce is a misallocation of real savings. As a rule, an artificial lowering of interest rates (which is accompanied by the central bank’s monetary pumping — increasing commercial banks’ reserves) boosts the demand for lending; and this, as a rule, causes banks to [...]


Global Terror Update

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them, but leave them the power to create [...]


‘Special Interests’ (Washington) Benefit From Fed Twist

I will not include in this post any trite, cute “twisty” sayings about Operation Twist 2.0. announced by the Fed today; it’s bad enough out there without me adding to the din. The bottom line is that the Fed will extend its program to buy longer term maturity Treasurys to the end of 2012. This [...]


From Deflation Push …To Inflation Shove

For the third time since 2008, financial markets are pricing in a deflationary rather than inflationary future. The reasons for this are understandable. There is now strong evidence that global economic activity is slowing. The euro-area banking and sovereign debt crisis is worsening. The US is heading towards a so-called ‘fiscal cliff’ in [...]