Sound Banking

Tuesday, June 21st, 2011
In the argument between proponents of fractional reserve and 100% reserve banking, it often comes down to a moral argument with the Full Reservers usually charging that fractional reserve banking (FRB) is inherently fraudulent because it is placing two full, separate claims on the same item, i.e.
Thursday, June 9th, 2011
Deposit insurance, it is argued, is needed to cope with inherent fragility of banking and money market. To avoid panics, or financial crisis, a safety net on the system is required. Of course, such safety, is not free.
Monday, June 6th, 2011
Chicago Tribune columnist Steve Chapman claims that fears of coming inflation are “unfounded.” His main arguments:
Tuesday, May 31st, 2011
"Free bankers have been fighting a war on two fronts. On one they face champions of central banking and managed money. On the other they struggle against advocates of 100-percent reserve banking.
Monday, May 30th, 2011
"Federal Reserve Bank of Kansas City President Thomas Hoenig, the central bank’s longest-serving policy maker, said the U.S. needs to raise interest rates to encourage individuals to save and avoid future asset bubbles.
Tuesday, May 24th, 2011
"To begin, the national debt has provoked concern over the stability of US debt. Last month Standard and Poor’s revised its sovereign credit rating of the U.S. in the long-term from stable to negative. Last week the US reached its debt limit, which, justified or not, has perpetuated this anxiety.
Monday, May 23rd, 2011
Roberts and Papola have done it again: a rap video that explains the divergent views of two of the most prominent economists of the 20th century. It’s  better than most textbooks, and entertaining to boot.
Monday, May 23rd, 2011
"In ordinary times it would be ignorant to ask, “Who’s going to bail out the Fed?” — but then again these aren’t ordinary times. Solvency of the Federal Reserve Bank shouldn’t be an issue because it carries the full faith and credit of the United States of America.
Thursday, May 19th, 2011
"The U.S. Consumer Price Index for April provided insight into one reason why the housing market is so quiet. While home prices have been showing steady erosion so far this year, as recorded by the S&P Case-Shiller index, the price level for a basket of consumer goods has been rising.
Wednesday, May 18th, 2011
"The federal government recently placed Fannie Mae and Freddie Mac, the government chartered, privately owned mortgage finance companies, in conservatorship.
Wednesday, May 18th, 2011
"Could the U.S. economy use an extra $170 billion right about now? Though the economy has shown fitful signs of growth, that growth is still so fragile that it remains to be seen whether it can withstand setbacks such as the rising price of gasoline.
Tuesday, May 17th, 2011
...In the meantime, even Mexico may be trying to get a step or two ahead of the Federal Reserve and the U.S. Treasury Department. In the words of Mexican billionaire Hugo Salinas Price, “Well I think the central bank (of Mexico) is watching what the Federal Reserve has been doing with utter amazement because we have been down that path before and it led to our ruin. So maybe they are saying, ‘We better have a little bit of gold because what is going on with quantitative easing is really hair-raising.’”
Tuesday, May 17th, 2011
"Practically speaking,a ceiling that is raised automatically is no ceiling at all. Given that, why not dispense with the pretense? The reason is politics.
Monday, May 16th, 2011
"The US economy is headed for a period of higher inflation and lower growth that makes the nation's debt unappealing when measured against its global competitors, Pimco's Bill Gross told CNBC.
Friday, May 13th, 2011
"The second problem with QE2 is that the Fed is stuck in an inappropriate economic model, which embodies the adage that when all you have is a hammer, every problem looks like a nail. The Fed really only has one policy tool: raising and lowering interest rates, whether short- or long-term.
Thursday, May 12th, 2011
"Bernanke continues to dismiss inflation as a big U.S. economic concern, and the Fed decided last week to keep interest rates between 0.00% and 0.25% "for an extended period." But U.S.
Thursday, May 12th, 2011
"Vincent Reinhart of the American Enterprise Institute talks with EconTalk host Russ Roberts about the government interventions and non-interventions into financial markets in 2008. Conventional wisdom holds that the failure to intervene in the collapse of Lehman Brothers precipitated the crisis.
Wednesday, May 11th, 2011
"President Roosevelt's second offensive against the depression has been launched in the form of an amendment to the farm bill. This amendment provides a manner in which the credit of the country will be expanded. Expansion of credit is expected to lead to increased business activity.
Friday, May 6th, 2011
"What is needed most is global financial stability. Many worry that the dollar-centred monetary system is sick, leaving some to present radical proposals.
Friday, May 6th, 2011
"J. Bradley Jansen spoke at the Mises Institute’s Austrian Scholar’s Conference in 2005 on bank secrecy and financial privacy." See it here.