Federal Reserve

Janet Yellen on Bubbles, Bailouts, and the Fed

Tuesday, April 8th, 2014 by posted in Banking, Economics.
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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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Central Banks Extend Their Reach as Bureaucratization of Markets Continues

Tuesday, April 1st, 2014 by posted in Banking, Capitalism, Economics.
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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.
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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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Keynesian Myths and The Triumph of The Warfare State

Thursday, March 27th, 2014 by posted in Banking, Economics, History.
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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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Requiem for a Bernank

Tuesday, February 11th, 2014 by posted in Banking, Capitalism, Economics.
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Ben Bernanke´s tenure as, arguably, the most powerful man in the world came to an end on 3 February, 2014. For the past eight years, “the Bernank” as he affectionately came to be called, steered the world´s largest economy through

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Fake It ‘til You Make It

Friday, February 7th, 2014 by posted in Banking, Capitalism, Economics.
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Reprinted from BryceMcBride.com If you look at the headlines, it appears as though the global economy is well on the road to recovery. The American stock and bond markets are at all-time highs which would seem to indicate that investors

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The Wolves of Constitution Ave.

Wednesday, February 5th, 2014 by posted in Banking, Capitalism, Economics.
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Leonardo DiCaprio has been lambasted for romanticizing the life of the real-life “wolf” he recently won best actor for at the Golden Globes. Jordan Belfort, the founder and president of New York investment banking firm Stratton Oakmont, conned small-time investors

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Reserves as an Important Barrier to Bank Credit Expansion

Tuesday, January 14th, 2014 by posted in Banking, Capitalism, Economics.
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There are many limitations to the extent to which banks can expand credit. The main ones are (1) the limitation imposed by required reserves, (2) the limitation imposed by capital leverage ratios, and (3) the limitation imposed by liquidity requirements.

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Less Inflation, Not More

Thursday, December 26th, 2013 by posted in Banking, Economics.

Amongst other things, inflation is a form of taxation. As prices rise the purchasing power of savings falls. As a consequence, savers are harmed while creditors gain by having to repay their debts with less valuable money than when they

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Janet Yellen, the “Pink Dream,” and a Coming Economic Nightmare

Monday, December 16th, 2013 by posted in Banking, Capitalism, Economics.
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Reprinted from Mises.org On Monday, former Fed official Andrew Huszarpublicly apologized to the American public for his seminal role in executing the Quantitative Easing (QE) program, a program he characterizes as “the greatest backdoor Wall Street bailout of all time,” and

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Has the Fed Met Its Match?

Wednesday, December 11th, 2013 by posted in Banking, Capitalism, Economics.
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Reprinted from Laissez Faire Today Now, this is sheer entertainment. The Chicago branch of the Federal Reserve has addressed the great monetary question of our day. A researcher has taken a detailed look at the prospects for market-based crypto-currency, with a special

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Beware of the Central Banking Cartel

Thursday, November 28th, 2013 by posted in Banking, Capitalism, Economics.
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The announcement On 31 October 2013, the world’s leading central banks made an important announcement: They said that they would make their “liquidity swap agreements”, which so far had been temporary in nature, permanent. The official language reads as follows:

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More Dysfunctional Comments from the IMF

Wednesday, November 20th, 2013 by posted in Banking, Capitalism, Economics.
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International Monetary Fund (IMF) managing director Christine Lagarde recently warned against the “tapering” of Fed asset purchases. In particular she noted the damage that could be done to emerging markets by such a draw down in asset purchases, and the

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Hyperinflation Is the Necessary, Proper, Patriotic, and Ethical Thing to Do

Monday, November 18th, 2013 by posted in Banking, Capitalism, Economics.
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Hyperinflation is the complete breakdown in the demand for a currency, which means simply that no one wishes to hold it. Everyone wants to get rid of that kind of money as fast as possible. Prices, denominated in the hyper-inflated

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QE and the 0.2%

Wednesday, November 13th, 2013 by posted in Banking, Capitalism, Politics.

Early support of the Fed´s QE programs, Andrew Huszar, has just come around and recognized what some of us have known for a long time. Quantitative easing has done nothing to help Main Street and has become “the greatest backdoor

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What the Fed Can Learn From the McDonald’s Dollar Menu

Wednesday, November 13th, 2013 by posted in Banking, Capitalism, Economics.
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Reprinted from Laissez Faire Books We live in parallel universes. Federal Reserve Chairman Ben Bernanke is said to have a healthy concern about deflation. McDonald’s franchisees, on the other hand, not so much. The chain of Golden Arches fame will

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Ron Paul Left His Mark on Future Political Discourse

Friday, November 1st, 2013 by posted in Economics, Foreign Policy, Politics.
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Reprinted from the Middletown Press and Journal Back in the heat of the 2008 Republican primary, the candidate debate in South Carolina held a defining moment for the course of American politics. When then-Rep. Ron Paul was asked to clarify

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Yellen, the Most Qualified Since Arthur Burns

Thursday, October 10th, 2013 by posted in Banking, Capitalism, Economics.
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There’s plenty of gushing about the Janet Yellen appointment as Federal Reserve Chairman.  Robert says she’s “a real mensch.” Greg Mankiw says President Obama made a great decision in choosing her.  “Reports of Janet Yellen’s forthcoming nomination will be greeted

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The Problem is not the Fed´s Chair, It´s the Fed

Thursday, October 10th, 2013 by posted in Banking, Capitalism, Economics.
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Janet Yellen has just been nominated by Barack Obama to replace Ben Bernanke as chairman of the Federal Reserve. Ms. Yellen is a well-known and respected economist. Her research, some of which pertains to the benefits of trade liberalization, is

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The Importance of the Dollar as a Reserve Currency

Thursday, October 3rd, 2013 by posted in Banking, Capitalism, Economics.
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We use the term “reserve currency” when referring to the common use of the dollar by other countries when settling their international trade accounts. For example, if Canada buys goods from China, it may pay China in US dollars rather

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