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A Sensible Central Banker?

Saturday, October 11th, 2014 by posted in Banking, Capitalism, Economics.

With all the lunacy coming from the world’s central bankers since, well, ever, it’s refreshing to hear something (anything!) sensible coming from one of them finally. Bank of Canada Governor Stephen Poloz’s recent announcement that the BoC would stop using

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Befuddled Keynesians attack German responsibility

Friday, October 10th, 2014 by posted in Economics.

Re: Germany’s Insistence on Austerity Meets With Revolt in the Eurozone Re: I.M.F. Asks Rich Countries for Support These two article in the New York Times from Wednesday of this week illustrate the confusion and increasing stridency of Keynesian school

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Libertarianism, Socialism, and Subjectivism

Friday, October 10th, 2014 by posted in Philosophy.

Consistency. This is undoubtedly the one word that any libertarian, when given the chance to describe their philosophy, would pick. Interestingly enough, when there is a remarkable amount of diversity amongst the rationalization of the libertarian position. The intellectual grounding

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An opportunity to educate the public is squandered

Friday, October 10th, 2014 by posted in Banking, Economics, Law, Politics.

From today’s Open Europe news summary: Hans-Werner Sinn: Some countries should be allowed to temporarily leave the euro Open Europe yesterday hosted the launch of Professor Hans-Werner Sinn’s new book, ‘The euro trap: on bursting bubbles, budgets and beliefs’. At

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Be Careful When you Wish for a Weak Dollar

Friday, October 10th, 2014 by posted in Economics.

A little over a year ago, Canadians were alarmed by the surging loonie. As the argument went, foreigners (and Americans in particular) couldn’t afford to buy Canadian-made goods. Since the country couldn’t compete, better get the Bank of Canada on

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A way to look at Fed mismanagement of the dollar

Thursday, October 9th, 2014 by posted in Banking, Economics.

Here’s an interesting little calculation of how many dollars the Fed would have to charge for an ounce of its gold reserve in order to cover all of M1. (M1 is the narrowest definition of money, which includes cash and

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Some Fortunate Facts about Ebola

Thursday, October 9th, 2014 by posted in Health Care.

With reporters of the Western World losing their heads over the outbreak of the Ebola virus, it’s helpful to put it in the context of other diseases. This year roughly 8,000 West Africans have contracted the disease, mostly limited to

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Getting Conned by CONs

Wednesday, October 8th, 2014 by posted in Health Care.

In the healthcare industry, a certificate of need, also known by the acronym CON, is an anticompetitive licensing restriction allegedly designed to promote fair competition by requiring hospitals to demonstrate the need for certain projects and services in order to

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Venezuela’s Biggest Shortage

Wednesday, October 8th, 2014 by posted in Capitalism, Civil Liberties, Economics, Regulation.

Venezuela’s socialist government has beset the population with all sorts of terrible travesties, from high inflation to shortages of toilet paper. Now the country’s poor citizens have one more shortage to grapple with: breast implants. Apparently the country’s restrictive currency

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Bubbly Real Estate and Greater Fools

Tuesday, October 7th, 2014 by posted in Economics.

The Fed has more than quadrupled its balance sheet from 2008 to now, attempting to create jobs. The result; a 1.7 million increase in the number of unemployed, a 2.5 million increase in the number of those employed part-time for

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Will You Have a Second Child if Permitted?: China’s One-Child Policy 2.0

Tuesday, October 7th, 2014 by posted in Economics, Foreign Policy.

China’s one-child policy has been a controversial topic since its implementation. One major argument is that this policy will lead to a substantial decline in fertility rate over time. According to Bing Chen (2014), who cites from the 2011 China

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One More Step Towards a Market Economy: The Reform of China’s Household Registration System

Tuesday, October 7th, 2014 by posted in Economics, Foreign Policy.

On July 30, 2014, a piece of news regarding the reform of China’s Household Registration system (the hukou system) began to be circulated. This reform was officially confirmed by the state council of PRC earlier, and soon became a heated

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A Lapse in State Security

Tuesday, October 7th, 2014 by posted in Politics, Regulation, Socialism.

The recent break-in at the White House by a crazed man has predictably sparked a debate over national security. The intruder, 42-year-old Army veteran Omar Gonzalez, hopped the surrounding fence and breached what is supposed to be the most guarded

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German Understatement

Monday, October 6th, 2014 by posted in Banking, Economics.

From today’s Open Europe news summary: Germany hits out at ECB plans to buy asset backed securities ECB plans to purchase Asset Backed Securities (ABS) have taken a lot of criticism in Germany, with Bundesbank President Jens Weidmann warning that

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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.

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.

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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Krugman’s Gross Mistake

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

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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