Browsing All Posts filed under »Monetary Policy«

Quote for the Day–John Maynard Keynes!

May 16, 2014 by

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Whoever thought Bereansatthegate would feature a quote for the day from Lord Keynes?  Yet here we are: Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth […]

Janet Yellen’s Nomination and Her Confirmation’s Impact on Monetary Policy

October 10, 2013 by

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Yesterday Barack Obama nominated Janet Yellen to become Chairwoman of the Board of Governors of the Federal Reserve. Borrowing from Stanly Kubrick’s classic film Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb and with apologies to Slim Pickens, this is how I perceive Yellen’s nomination (and subsequent Senate confirmation) will impact […]

Bubble, Bubble, Toil & Trouble: The Fed found it easy to build a bond bubble, but finding it more difficult to unwind

July 11, 2013 by

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There is little doubt the Fed’s easy money policy, and especially the deliberate QE of buying long term instruments, has resulted in speculative flows investing in those assets.  As we related last week, the Fed’s discussion of tapering has resulted in immense turmoil, as speculators are wondering if capital needs to be redeployed away from […]

Market uncertainty w/end of QE proof of central claim of Austrian Business Cycle Theory

June 28, 2013 by

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Many critics of Austrian economic theory on the causes of business cycles suggest that the lack of significant CPI-based inflation shows the Austrians are all wrong.  Yet, as I have argued earlier, CPI inflation is NOT what Austrians are concerned with.  Rather the central banks artificially lowering interest rates leads to malinvestment and a distortion […]

Margaret Thatcher: October 13, 1925 – April 8, 2013 “No liberty unless there is economic liberty”

April 8, 2013 by

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Freedom lost a true ally with the passing of the “Iron Lady”, Margaret Thatcher. The quote in the title is from a Time interview from May 14, 1979 as her successful campaign for Prime Minister was coming to a conclusion. Prime Minister Thatcher was a (perhaps the) leading politician along with Ronald Reagan (the “second […]

Texas Gold going home: the latest body blow to Federal Reserve credibility?

March 29, 2013 by

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A few months ago the big revelation to gold bugs was Germany wanted its gold back from the Federal Reserve.  What’s the world coming to when central banks don’t trust each other?  Further, with central banks net buyers of gold for the last few years, something seems afoot in the global currency markets.  In perhaps […]

Paul Krugman on Cults and Economics

March 19, 2013 by

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 “But woe to you, scribes and Pharisees, hypocrites, because you shut off the kingdom of heaven from people; for you do not enter in yourselves, nor do you allow those who are entering to go in. When I think about this verse from Matthew 23 of the Eight Woes, I can’t help but see some […]