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Is the US making the same mistakes as Zimbabwe?

Sunday, October 5th, 2014 by posted in Economics, Politics.

I have started reading a new book about the collapse of the Zimbabwean dollar–When Money Destroys Nations, by Philip Haslam and Russell Lamberti. One of the main causes of the hyperinflation was the decision of the Zimbabwean government to give

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QE Reduces Long-Term Rates: Theory and History

Saturday, October 4th, 2014 by posted in Economics.
10 yr

The more I study the Bill Gross episode, the more interesting it becomes. In a previous post I showed that although Paul Krugman had definitely been right to say (when it occurred) that Gross’ bet against Treasuries was going to

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Can the Central Bank Control Interest Rates?

Friday, October 3rd, 2014 by posted in Economics.
Base vs FF

In my last post, I brought up the fact that Paul Krugman seems to be saying two different things: On the one hand, he excoriates the ECB for tightening in 2011 by raising interest rates, and on the other hand,

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We’ll buy your bonds only if we give you the money to repay us

Friday, October 3rd, 2014 by posted in Banking, Economics.

From today’s Open Europe news summary: ECB disappoints markets by holding policy The ECB yesterday held interest rates and revealed the details of its purchases of covered bonds and asset backed securities – the former will begin in the second

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Housing Bubble on the Thames

Friday, October 3rd, 2014 by posted in Economics.

With London England the new place to be for oil-rich Russian oligarchs and Middle Eastern sheiks, the question going around is whether house prices are in a bubble. Despite a brief blip down with the credit crunch in 2007-08, prices

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The Truth of the Decreasing Labor Participation Rate

Friday, October 3rd, 2014 by posted in Capitalism, Economics.
young_teaser

Every once in a while an article comes along that is so misleading it just begs for an answer. This recent piece in Forbes is one such article. The basic claim the author and his interviewee make is that the Obama

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Krugman’s Gross Mistake

Friday, October 3rd, 2014 by posted in Economics.
bill-gross-1

Several of Krugman’s most recent posts have been of the familiar category where he runs victory laps on his inflation/interest rate calls, pointing out that the people who disagreed with him are not only worse economists, but horrible people as

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The Fed vs. Praxeology

Thursday, October 2nd, 2014 by posted in Banking, Economics.
federal_reserve1_teaser

Reprinted from Casey Research Janet Yellen must feel like she’s herding cats. The Federal Reserve is keeping interest rates at zero, thinking the common man and woman will spend money or buy stocks. Dr. Yellen wants us all to get

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Learning the Virtue of Capital Accumulation

Wednesday, October 1st, 2014 by posted in Capitalism, Economics.
Clocking-Off

In the American slapstick classic Monkey Business, Groucho Marx retorted, “Oh, I know it’s a penny here and a penny there, but look at me. I worked myself up from nothing to a state of extreme poverty.” Marx was no

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Update on Austrian Economics Conference

Wednesday, October 1st, 2014 by posted in Economics, Education.

The Organizing Committee of the Fifth International Conference “The Austrian School of Economics in the 21st Century” reminds you: 1) Simultaneous Interpretation will be available during the event. 2) The deadline for abstracts and enrolment forms reception is extended up

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Century of Enslavement: The History of The Federal Reserve

Wednesday, October 1st, 2014 by posted in Banking, Capitalism, Economics.
Century of Enslavement: The History of The Federal Reserve

What is the Federal Reserve system? How did it come into existence? Is it part of the federal government? How does it create money? Why is the public kept in the dark about these important matters? In this feature-length documentary

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Uncle Sam´s Annual Borrowing 14 Times Worse Than Thought

Wednesday, October 1st, 2014 by posted in Capitalism, Economics.

Lots of people like to concentrate on the deficit when looking at public finances. In 2013, he federal government of the United States ran a budget deficit of $614 billion, which is quite a bit, but seemingly small relative to

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A Strategy for the Right Part 2

Wednesday, October 1st, 2014 by posted in Economics, Politics.
white_house_teaser

Reprinted from Mises.org It is instructive to turn now to a prominent case of right-wing populism headed by a dynamic leader who appeared in the last years of the Original Right, and whose advent, indeed, marked a transition between the

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Will an ordinary German citizen challenge the lawless ECB?

Tuesday, September 30th, 2014 by posted in Banking, Economics, Law, Politics.

From today’s Open Europe news summary: German economist Hans-Werner Sinn writes in the FT, “Deflation is not a danger for southern Europe, but an essential precondition for restoring competitiveness.” He describes the ECB’s latest asset purchase plan as “nothing less than

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More European “Growth” Shenanigans

Tuesday, September 30th, 2014 by posted in Economics.

Europe got some good news in early June as the EU changed its statistical guidelines on how to compute GDP. Among other changes, expenditures on prostitution and illicit drugs (hookers and blow, colloquially) will now be included. Of course, some

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Is New York City’s Proposed Ban on the Use of Supplemental Nutrition Assistance Program Benefits for Purchases of Sugar-Sweetened Beverages Effective Policy?

Tuesday, September 30th, 2014 by posted in Economics, Politics, Regulation.

In 2011, New York City mayor Michael R. Bloomberg proposed a ban on using Supplemental Nutrition Assistance Program benefits (commonly known as food stamps) for the purchase of sugar-sweetened beverages. While the plan has been criticized by food and beverage

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About Those Monotonic Transformations…

Monday, September 29th, 2014 by posted in Economics.
chalkboard

If you have spent an egregious portion of your life in economics classrooms, you have doubtless heard that the utility functions used therein are representations of purely ordinal preference rankings. As your professors likely told you, although utility functions assign

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Ludwig von Mises: Defender of Capitalism

Monday, September 29th, 2014 by posted in Capitalism, Economics, History.
MisesLibrary (2) teaser

Editor note: Today commemorates the 133rd birthday of Ludwig von Mises. September 29, 2014 is the one-hundred-and-thirty-third anniversary of the birth of Ludwig von Mises, economist and social philosopher, who passed away in 1973. Mises was my teacher and mentor

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More Evidence That Canadian Success Story Didn’t Rely on Loose Money

Sunday, September 28th, 2014 by posted in Economics.
Canadian-Flag-08

In a previous post, I reviewed the great Canadian success story involving relatively large budget cuts as a way to turn around the fiscal crisis of 1995. On the surface, this seems anomalous to those who think Aggregate Demand is

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Krugman vs. Krugman on Conservative Canadian Cockroach

Friday, September 26th, 2014 by posted in Economics.
BROWN COC

You really have to feel bad for Paul Krugman. No matter how many times he tries to kill the idea that 1990s Canada serves as a lesson for today’s policymakers, it just keeps coming back, like a cockroach. In case you

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