Archive | Monetary Policy

This is the simplest argument we’ve seen for leaving the Euro

There are loads of good arguments out there for why Greece (or Italy, or Spain, or Portugal) should leave the Euro.  We’ve always been partial to the basic philosophical truth that monetary policy lies at the core of national sovereignty. No nation is sovereign if they can’t set monetary policy. And then we saw this chart (from the […]

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Monetary Apocalypse Now: Venezuela

While the world watches Greece’s economy approach the cliff-edge, and Europe’s banking elite employ more and more desperate accounting tricks to magically conjure Eurozone solvency – we would like to point our readers’ attention to Venezuela, which provides a useful illustration of what happens to all fiat currencies on a long enough timeframe. The Venezuelan bolivar is […]

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Never go full retard: Bloomberg calls for “helicopter money”

Clive Crook, a member of Bloomberg View’s editorial board, has gone where the sensible have long feared to tread.  In today’s Bloomberg View, he recommends stimulating the economy by just giving everyone free money. Crook also may have set a Bloomberg View record for getting everything so wrong, so quickly.   By his third sentence Clive is clearly lost. […]

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Stanley Fischer’s statement of the obvious: “Bankers should be punished for financial crimes”

Federal Reserve vice chairman Stanley Fischer’s speech yesterday met with disbelief and snickers when he announced that those who commit financial crimes should “suffer”. So where was Mr. Fischer back before the statute of limitations on the largest crimes ran out? Of course, we know. He was busily destroying the US economy with a deadly cocktail of unproven, fringe economic […]

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Rick Santelli vs. the Talking Heads

Today’s pro-Fed vs. anti-Fed showdown on CNBC was highly entertaining and highly infuriating all at the same time. Here’s the problem with the closing argument: Those that argue that ‘the market has risen ergo the Fed has succeeded’ not only misunderstand the role of the Federal Reserve (as Santelli pointed out), or to whom the benefits […]

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Please help us raise funds to visit Paul Krugman’s home planet.

We’re asking for your support to help crowd-fund a purpose-built spacecraft. We haven’t gotten around to making a page on StartJoin yet, but it’s coming. Why, you ask?   Because after reading Paul Krugman’s editorial defending Fed policies last week, we have become intensely interested in visiting his planet. So if you’re ready to hear our “pitch”, please sit […]

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Central banks promise to be less clear

So much for the era of central bank clarity.  That went by quickly.  Today,  it looks like we will be returning to a Greenspan-like era of riddles, double-speak and meaningless gobbledygook.  Fed utterances will once again require “parsing” by “Fed experts” as central-bank chiefs return to “telegraphing” their intentions to a mystified media. The world’s major central banks […]

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IMF admits that central bank policies aren’t working

Speaking at the World Economic Forum, “our girl” (Tim Geithner’s term) Christine Lagarde announced to a largely unsurprised audience that stimulus measures weren’t actually doing much of … well, anything.   Using carefully crafted lingo intended to preserve the believability of now failed monetary policies, Lagarde spun it like this: The measures to sustain demand, despite the […]

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Did the “central banks’ central bank” just call for a stock-market collapse?

Don’t look now, but the Bank for International Settlements (BIS), which is often referred to as the “central banks’ central bank”, just advised the world’s central banks to stage a market collapse now rather than later. For anyone claiming that the many global critics of central banks are a “bunch of doomers”, that argument has now been […]

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There are no such thing as perpetual-motion devices, Mrs. Yellen

Up until the late 1600′s, before Newton penned his brilliant “first law”, many inventors tried to create what were called perpetual motion machines.   These machines, once set in motion, would literally run forever on a single push.  Or so the theory went.  Needless to say, no one managed to create a source of infinite energy from wood, […]

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