Debt or Taxes

– September 30, 2020

“At the present juncture, developed country government bond yields are more likely to fall than rise. Fiscal spending will be financed by deferred taxation, the repayment of today’s (and probably tomorrow’s) obligations will be bequeathed to our children and grandchildren. Digital taxes, taxation on wealth and financial transaction fees may creep higher at the margins, along with higher taxes on higher earners, but debt is the least painful solution to the fiscal needs of the present.” ~ Colin Lloyd

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Political Legitimacy Dies in 2020

– July 28, 2020

“As Thomas Jefferson declared in 1786, ‘An elective despotism was not the government we fought for.’ What’s the point of voting if ‘government under the law’ is not a choice on Election Day? American political legitimacy will continue plummeting as long as politicians scorn any legal and constitutional limits on their power.” ~ James Bovard

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federal reserve building

COVID-19 Made the Federal Reserve Sick

– June 24, 2020

“The change in the Fed’s mandate is not something we can afford to ignore. Its new policies come with significant economic and political costs. If we do not come to grips with them, the Fed might not be able to help much when the next crisis hits.” ~ Alexander W. Salter

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Negative Interest Rates Explained

“If policy does not moderate and if investors are unable to innovate means to protect their positions from these policies, as they often have in the past, the current fiscal and monetary regime places the globe at risk of, at worst, financial catastrophe and, at best, stagnation.”~James L. Caton, Peter C. Earle, William J. Luther

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Japan’s Three Decades of Depressive Stimulus Schemes

Japan’s Three Decades of Depressive Stimulus Schemes

– June 3, 2020

“The U.S. and Japan are old welfare states that can’t afford what they’re doing; nonetheless, their politicians can’t seem to succeed electorally without persisting in their profligacy. Japan’s history signals the likely outcome for copycats: prolonged stagnation.” Richard M. Salsman

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The Virtues of Fiscal Discipline

– April 10, 2020

Deficits used to be temporary affairs racked up in exceptional periods as the result of shocks, and paid down with surpluses. Despite years of decent economic growth, public debts in most western countries remain at high levels relative to GDP. Consequently, capacity to respond to crisis – such as natural disasters, wars and the one we are facing now – through borrowing is considerably reduced.

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