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More illegality by the European Central Bank

Wednesday, April 23rd, 2014 by posted in Banking, Economics, Law.

From today’s Open Europe news summary: Welt: ECB “trick” to help Portugal return to the markets Die Welt reports that the ECB will use a “trick” to help Portugal to return to the markets, by once again adjusting its collateral

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Whatever Happened With TARP?

Monday, April 21st, 2014 by posted in Banking, Economics.
tarp

Bryan Caplan recently brought up the financial impact of the Troubled Asset Relief Program (TARP), now that the dust has (largely) settled. As the nearby chart illustrates, overall the TARP contributed to the U.S. federal budget deficit–meaning it will cost

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Short Memories and Money Creation

Wednesday, April 16th, 2014 by posted in Banking, Economics.

Bankers have never been accused of having long memories, but the crash beginning in ‘08 took out nearly 500 banks. Most were victims of plunging real estate values that savaged real estate loan portfolios.  You’d think it would be a

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More Intimations by the European Central Bank of Currency Confiscation

Monday, April 14th, 2014 by posted in Banking, Capitalism, Civil Liberties, Economics.

From today’s Open Europe news summary: Draghi suggests that the ECB could ease policy further to tackle strong euro Speaking at the spring meetings of the IMF and World Bank over the weekend, ECB President Mario Draghi said that the

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More IMF Meddling

Wednesday, April 9th, 2014 by posted in Banking, Economics.

The International Monetary Fund is up to its mixed messages again. This time it´s a dire warning about Canada´s future. The IMF has recently softened its outlook on Canada, warning that “”downside risks to the outlook still dominate, including from

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Janet Yellen on Bubbles, Bailouts, and the Fed

Tuesday, April 8th, 2014 by posted in Banking, Economics.
rsz_janet-yellen

Transcribed from Janet Yellen’s Exclusive Interview Was the Federal Reserve justified in bailing out the entire financial system in 2008-9? This is why the Fed was originally set-up in 1913. It is to provide liquidity to the financial system as a

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Why Lehman is Still a Mess

Tuesday, April 8th, 2014 by posted in Banking, Capitalism, Economics.

More than five years after the collapse of Lehman Brothers, economists are still searching to understand why it failed as badly as it did. By this I don’t mean why it went bankrupt – everyone is well aware that its

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No criticism of the Fed allowed

Saturday, April 5th, 2014 by posted in Banking, Capitalism, Economics, Regulation.

Re: Jeremy Stein to Resign From Fed Board to Return to Harvard Now, no one would ever call Harvard professor Jeremy Stein an Austrian school economist, so it is illuminating how even his modest questioning of Quantitative Easy is not allowed

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Central Banks Extend Their Reach as Bureaucratization of Markets Continues

Tuesday, April 1st, 2014 by posted in Banking, Capitalism, Economics.
fed teaser

Reprinted from DetlevSchlichter.com The twentieth century witnessed the shift from the classical order of free markets and hard, non-political money – epitomized by the gold standard – to fully elastic money and credit markets under the control of state central banks.

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Fiat Money and Business Cycles in Emerging Markets

Friday, March 28th, 2014 by posted in Banking, Capitalism, Economics.
world-currency teaser

Reprinted from Mises.org After the stock market collapse of 2008 and a decline of 3.4 percent for U.S. GDP in 2009, investors rushed to stash funds in emerging markets (EM) where economies were growing at a 3.1 percent annual rate.

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What can we expect from new Fed Chairman Janet Yellen?

Thursday, March 27th, 2014 by posted in Banking, Economics, Politics.

No change. Oh, you want more?  Well, OK, I suppose I can give more of an explanation than that.  Groucho Marx used to tell a joke on himself that “I wouldn’t want to belong to any club that would admit

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Keynesian Myths and The Triumph of The Warfare State

Thursday, March 27th, 2014 by posted in Banking, Economics, History.
federal reserve teaser

Reprinted from LewRockwell.com Presentation by David A. Stockman to The Committee for the Republic, February 11, 2014 Flask in hand, Boris Yelstin famously mounted a tank outside the Soviet Parliament in August 1991. Presently, the fearsome Red Army stood down—an

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Stealth Inflation

Tuesday, March 25th, 2014 by posted in Banking, Capitalism, Economics, History.

Central bankers have managed to obscure the effects of money printing. But market efficiency gains can’t hide the problems forever.    Six years into recovery and the economy worldwide is punk, despite central bankers’ belief they can inject just the

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Anthropomorphizing the Banking System

Tuesday, March 25th, 2014 by posted in Banking, Capitalism, Economics.

Re: European Officials Reach Deal on Failed-Bank System The European Union’s attempt to create one bank regulator with the power to shut down and bailout problem banks will fail, because it does not address the cause of generalized bank failures. 

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Hazlitt’s Timeless Wisdom

Friday, March 21st, 2014 by posted in Banking, Capitalism, Economics, History.

CNBC’s Rick Santelli used his “Santelli Exchange” segment on March 14th to highlight the wisdom of Hazlitt’s Economics in One Lesson written in 1946. The financial network’s tea party rabble rouser and sparring partner to economist Steve Liesman said, Warren

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Inflation Then and Now

Thursday, March 20th, 2014 by posted in Banking, Economics, History.
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Reprinted from Pembroke Daily Observer The struggle between the National Union of Mineworkers under Arthur Scargill and the government of the United Kingdom under Margaret Thatcher began thirty years ago this past week. The miner’s strike of 1984-1985 is remembered

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The High Price of Delaying the Default

Wednesday, March 19th, 2014 by posted in Banking, Capitalism, Economics.
lehman teaser

Reprinted from Mises.org Credit is a wonderful tool that can help advance the division of labor, thereby increasing productivity and prosperity. The granting of credit enables savers to spread their income over time, as they prefer. By taking out loans,

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What Was “The Coyne Affair” ?

Monday, March 17th, 2014 by posted in Banking, Economics, History.
JamesCoyne

James Elliott Coyne would have been 104 years old this July, if he had lived past the ripe old age of 102. A lawyer by training, Coyne first joined the Bank of Canada in 1938 in the Research Department, but

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Anti-Logic and the Keynesian “Stimulus”

Monday, March 17th, 2014 by posted in Banking, Capitalism, Economics.
ARRA_sign_Baker_CA teaser

Reprinted from Mises.org American political culture always seems to be “celebrating” the anniversary of something, be it JFK’s assassination (we just passed the 50th anniversary of that sad event) or the signing of some (mostly bad) legislation. The latest political

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The Failure of Keynesianism

Saturday, March 15th, 2014 by posted in Banking, Capitalism, Economics, History.
keynes

It’s hard not to agree with the old aphorism “history doesn’t repeat itself, but it does rhyme.” It’s nice to think we learn from our mistakes; yet we always seem to repeat them at some later date. Reading the daily

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