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 [...]

EmailPrintFriendlyShare

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 [...]

EmailPrintFriendlyShare

The Economy Is Floating On Air

Much of what we see in recent economic growth is caused by one thing: cheap money and credit. This is obvious as we look at two important economic drivers: autos and homes. Both are significant in that they represent the two biggest purchases that most Americans will make in their lifetimes, so their dollar volume [...]

EmailPrintFriendlyShare

Manufacturing Is Stagnating And The Fed Is Worried

The economy has sent the Fed a signal, and that is, quantitative easing, ZIRP, and Twist don’t work. Yet the Fed doesn’t realize that and with the economy stagnating and unemployment climbing, it is likely that they will persist with more of the same despite their failures. The manufacturing reports coming [...]

EmailPrintFriendlyShare

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 [...]

EmailPrintFriendlyShare

A Booming Money Supply Is Sowing The Seeds Of The Next Great(er) Recession

 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 [...]

EmailPrintFriendlyShare

The Worldwide Depression/Recession Of 2012

In case you haven’t noticed, the rest of the world continues to slow down and the negative data is accelerating. The big powerhouses of the world, the eurozone including Germany, Japan, and China are leading this trend and there is no reason to believe that the U.S. will not follow.

I’ve been writing about this [...]

EmailPrintFriendlyShare

Q3 GDP Is A Head Fake

The news on the latest GDP report said “recession fears recede.” Now, a few days later, it’s “red flags.” So which is it?

I think it is still “red flags.” But then we have most of mainstream economists/analysts who disagree with us. The difference is that they have been mostly wrong and we have been mostly right.

[...]

EmailPrintFriendlyShare

Bernanke Will Be Forced To Do QE3

Dr. Frank Shostak, an Austrian theory economist who works for MF Global, and who writes for Mises.org on economics, came out with an article this week on what will happen when the Fed freezes its balance sheet in June, as they have said they will do. I very much enjoy Shostak’s writing and have [...]

EmailPrintFriendlyShare

A Note On Inflation: It’s Here

In an interesting article in the Wall Street Journal’s “Numbers Guy” column, it was pointed out that maybe the government’s reporting of price inflation is skewed to favor the government. Shocking. He notes that the government keeps fiddling with its methodology:

According to one rogue economist, John Williams at Shadow Government Statistics, if we still calculated inflation the [...]

EmailPrintFriendlyShare

Are Banks Lending Again?

I want to follow up on several things I mentioned yesterday, mainly the state of banks and credit in America.

In yesterday’s article, “Goldman Says Fed May Need To Print $4 Trillion To Start Inflation,” I said:

Before we get back to the Fed, I think it is important that we are seeing a growing [...]

EmailPrintFriendlyShare