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“Ballooning U.S. debt is a serious long-term threat, but the economy needs more stimulus now, a top Federal Reserve official said Wednesday. Fed Vice Chairwoman Janet Yellen said she supported the Federal Reserve’s latest move to stimulate the still-te …
READ MORE“Prolonged inflation never “stimulates” the economy. On the contrary, it unbalances, disrupts, and misdirects production and employment. Unemployment is mainly caused by excessive wage rates in some industries, brought about either by extortionate unio …
READ MORE“In light of Bernanke’s plans to purchase $600 billion of longer-term government debt, many academic economists are beginning to worry: Could the Federal Reserve itself become insolvent? In this article I’ll explain these fears and I’ll argue that the …
READ MORE“The question of China’s artificially low interest rates and currency and its effects on economies will be left for another day. However, we would like to call your attention to the always interesting China Hush pictorial on what 100 yuan (~$15) will b …
READ MORE“Sure, buying and selling government debt in the open-market is how central banks control short-term interest rates. That’s why the Fed Funds rate is a target, and the actual outcome in the marketplace is instead known as the Effective Fed Funds. Biddi …
READ MORE“We are entering an era of high inflation, to judge by the massive growth of the money supply in the United States, Europe and Asia, and the stubbornness of central bankers who insist that high unemployment demands the creation of even more money. The …
READ MORE“The dance of the dollar counts — and it counts a lot. With few exceptions, when the dollar weakens against the euro, commodity prices soar, and when the dollar soars against the euro, commodity prices plunge. Every commodity trader knows the importanc …
READ MORE“Of course, the inflation any individual faces almost surely differs from the government’s aggregate data. Outside of housing, middle-income consumers have experienced more inflation than other income groups over the past year, in part because they dev …
READ MORE“Last year the consensus opinion was that we are all Keynesians now. Virtually everyone in the commentariat believed that John Maynard Keynes’s solution for the Great Depression—heavy government spending to resuscitate the economy—was also the answer t …
READ MORE“We may all be Austrians now. Not since the New Deal has Austrian economics enjoyed the political popularity it does now. Austrian economists are awfully popular with the Republican Party, especially its Tea Party wing. Peter Schiff, the Austrian econo …
READ MORE“Although the credibility of the Fed has been questioned for years in some quarters, the first major crack in the wall took place in May, 2009, when Elizabeth Coleman, inspector general of the Federal Reserve, was directly and repeatedly questioned abo …
READ MORE“In 2003, the Federal Reserve Bank lowered the Fed funds rate down to 1.25%. This was the lowest level that the Fed funds rate had been since 1954. Again, the low interest rate gave birth to the housing and credit boom. This rally or boom cycle lasted …
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