For starters there is no recovery. Secondly, there is every reason for eurozone exports to slump; there is no reason to believe hiring will pick up, and no reason for imports or internal demand to pick up in the absence of hiring.
Do not expect any government or central bank to learn much from history, especially Japan and especially now.
"All is well," the public bankers at the central banks around the world are saying to the private bankers on the Wall Streets around the world, even as the central banks distribute their Get-Well-Soon cards disguised as dollars, pounds, francs, lire and renminbi.
I recently indulged in some wistful, year-end nostalgia, but now that 2013 is underway, let’s turn our attention to a time more crucial to our well-being: the future in which we will live.
Everything you ever wanted to know about the Obama economy is in a single sentence about the Federal Reserve Board's attempts this week to deal with unacceptably high unemployment.
It may have been one of the strangest moments in the history of modern presidential politics.
The only plank remaining under notable discussion from either national convention platform of 2012 is the GOP platform’s call for a national monetary commission.
The fear for Japan- and the US- should be rising interest rates not deflation. If interest rates rise a mere 2%, interest on the national debt will consume 100% of government revenues.
Next week America will decide whether to gamble on the economic prosperity prescription being offered by Republican presidential candidate Mitt Romney, or on the social equity model presented by the incumbent president Barack Obama.
Are central bankers about to embrace the real world? The events at most central banking conclaves are a total, excruciating, bore. The recent gathering of the Federal Reserve’s tribes at Jackson Hole, however, produced an elegant, compelling, presentation by rising star central banker Andy Haldane. Finally, a youth in the banquet hall declaring that the Emperor has no clothes.
One of the latent issues of the 2012 presidential race is a referendum on the Bernanke Fed. If Romney is in, Bernanke is out.
In the iconic movie Goldfinger the villain, Auric Goldfinger, pursues a nefarious scheme, code-named “Operation Grand Slam,” to contaminate America’s gold horde at Fort Knox, thereby leveraging the value of his own, uncontaminated, holdings.
On September 18th, the London office of Deutsche Bank — one of the most respected banks in the world, and a bellwether of elite opinion — published a Global Markets Research paper entitled Gold: Adjusting for Zero. It was written by two esteemed, mainstream analysts Daniel Brebner and Xiao Fu.
Paul Krugman, in his New York Times column of August 24, "Galt, Gold and God," rails against an interest in the gold standard, which he attributes to Paul Ryan. Krugman lambastes Ryan, ironically enough, for an observation the latter made paraphrasing Keynes: "'There is nothing more insidious that a country can do to its citizens,' he intoned, 'than debase its currency.'"
A Saturday Evening Post reporter asked, in 1932, John Maynard Keynes if there had ever been anything like the Great Depression. Keynes replied, “Yes. It was called the Dark Ages and it lasted 400 years.” While the Great Recession is not so severe as was the Great Depression, it begins to appear that the world is enduring something that could be called “The Little Dark Age.”
Mike Lee, U.S. Senator from Utah, recently sponsored a bill entitled the “Federal Reserve Modernization Act.” It is the counterpart to Rep. Kevin Brady’s Sound Dollar Act of 2012 (which enjoys 35 House cosponsors and, of equal note, already is drawing liberal fire). The Brady/Lee legislation represents an important first step forward to restoring good money to America: money that can provide a foundation for prosperity with equity, security, and, of at least equal importance, constitutional integrity.
In virtually every airport bookstore in America right now you will find a little sleeper of a book in the business section which is as riveting as a thriller and as hard to put down. James Rickards Currency Wars made this reader remember what Secretary of the Navy John Lehman so vividly told Tom Clancy after reading his multi-million-seller Hunt for Red October: “Who the hell cleared this?”
Ron Paul wants to abolish the Federal Reserve. He may be right; it is hard to see how the Fed has enhanced our US economy.
The world dollar standard’s death certificate arrives in the mail this week. The Bank of England — “the Old Lady of Threadneedle Street” — one of the most staid, cautious, and dignified entities in the world of monetary policy — signals that the fiduciary currency standard ushered in on August 15, 1971 is, empirically measured, far inferior to the (dilute form of the) gold standard erected at Bretton Woods.
Harvard Professor Niall Ferguson inputs on how we got here and how to get out in this colorful video.
Rand Paul on NSA: “I Believe What You Do on Your Cell Phone is None of Their Damn Business” | Daniel Doherty
Devastating: 90 Percent of Uninsured Haven't Signed Up For Obamacare, Most Cite High Costs | Guy Benson