In a NBER working paper, Martin Feldstein argues that the Euro “should now be recognized as an experiment that has led to the sovereign debt crisis in several countries, the fragile condition of major European banks, the high levels of unemployment, and the large trade deficits that now exist in most Eurozone countries.” The…
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Mark Spitznagel has a short op-ed in the Wall Street Journal where he illustrates the disastrous effects of central planning through monetary policy. The actions of the Federal Reserve have only allowed bad investments to persist and to postpone inevitable corrections necessary in the capital structure of the economy. Herein are pearls of great…
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Over at Project Syndicate, Kenneth Rogoff answers the question: “Is Modern Capitalism Sustainable?” Rogoff starts by saying that if what you mean by capitalism is the European model of a welfare state, the answer is no. Continental European capitalism, which combines generous health and social benefits with reasonable working hours, long vacation periods, early…
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Sarah Skwire has penned a lovely rendition of a Christmas favorite. Below is her poem – full of truth, wit, and seasonal charm. Be sure spread some cheer this season and share this poem with all your free-market friends! How the Grinch Stole the Free Market All the folks Down in Galt’s Gulch Liked…
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The Daily Show with Jon StewartGet More: Daily Show Full Episodes,Political Humor & Satire Blog,The Daily Show on Facebook As it has come to light, from August 2007 to April of 2010 the Fed loaned out over $7.7 trillion to troubled banks. A Bloomberg report reveals that the U.S. government made these secret bailouts…
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Recently, I posted about Adam Smith’s fiscal principle: “What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.” In light of this rule, it is important to consider whether or not the state should bail out the heavily indebted poor. Considering hard cases such…
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Below is an excellent Bloomberg interview with James Rickards, senior managing director of Tangent Capital Partners and author of “Currency Wars: The Making of the Next Global Crisis.” He talks with James Grant, publisher of Grant’s Interest Rate Observer, on recent Federal Reserve monetary policy, the gold standard and the impact of Fed policy…
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James Buchanan and Richard Wagner begin their book Democracy in Deficit by explaining that prior to the absorption of Keynesian economics, the conventional wisdom of Adam Smith prevailed. Adam Smith had observed that: “What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.” This…
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New president Mario Draghi takes the reigns of the ECB, lowering the benchmark rate 25 basis points to 1.25 percent. The move is touted as a step to avert a looming recession and offset the tension caused by the ongoing sovereign debt crisis. Draghi takes office in a climate of extreme uncertainty. Greece is…
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The United States will officially pass the 100 percent debt-to-GDP line on Halloween. This is the first time this has ever happened since World War II. As Zero Hedge reports, We decided to dig into the actual numbers (cancelling out the per capital denominator as it is the same on both sides of the…
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