Posts tagged academic economists
Posts tagged academic economists
More Monopoly money, please.
Mises Daily: Monday, September 26, 2011 by Detlev Schlichter
Last week the US Federal Reserve delivered no real surprises. Its new policy was expected by the market and those members of the public who still follow the central bank’s every move with interest and, I can only assume, in the misguided belief that it has the answer to our problems. As part of “Operation Twist” the Fed will purchase $400 billion of long-dated government bonds and sell an equivalent number of short-dated securities from its extensive portfolio over the coming nine months. The operation is aimed at lowering long-term market rates and flattening the yield curve. In their infinite wisdom, the bureaucrats on the central bank’s policy-setting committee decided that here was another set of market prices that required their astute adjustment, or at least gentle guidance.
. . .
“Operation Twist” is another attempt to keep interest rates low and to encourage borrowing when the present crisis is in fact the result of low interest rates and excessive borrowing. The only solution to our problems is to stop printing ever-larger quantities of money and to finally allow the market to set interest rates and to cleanse the economy of its accumulated dislocations.
As long as you are “too big to fail” (i.e., a bank or corporation) that is. If you are a small business or lowly individual fuhgeddaboudit. Apparently Fed Chairman Bernanke never learned that sound economic principle espoused by an aunt of mine, now deceased, who years ago, without a degree of any kind, somehow knew, “Rich or poor, it’s good to have money.”
Bernanke outlines new approach to monetary policy!
This would be smoke and mirrors on a monumental scale, a whole new chapter to the Fed’s ongoing con game.
Wednesday, August 31, 2011
From Bruce Krasting:
Go back a week to an article in the New York Times. The guts of this story is that the Administration is working on a plan to ReFi residential mortgages on a massive scale.
Read article here.
Trick question, they blew up the lightbulb factory to create clean-up crew jobs.
ANOTHER NAIL IN OUR ECONOMY’S COFFIN
Nightmare On Pennsylvania Avenue
By Jeff Berwick, The Dollar Vigilante
— Posted Wednesday, 31 August 2011
Barack Obama, nominated a new man to head the “White House Council of Economic Advisors” on Monday.
It was Alan Krueger… a man who has been working in the White House for two years and who has his doctorate in Keynesian Economics from Harvard University.
I knew, just from reading that he had his PhD from Harvard that he would be a moron. That’s just a given with those “credentials”.
This nomination of Alan “Freddy” Krueger only ensures that the Nightmare on Pennsylvania Avenue will continue on to the bitter end.
Our holdings in real assets, gold, silver, precious metals stocks and internationalizing our assets, especially outside the US, continues to be the most rational of choices.
An Open Letter to Ben Bernanke
This is must-read devastating tongue-in-cheek satire aimed directly at Helicopter Ben. My guess is that the threatening cowboy referred to in the letter would be none other than Ron Paul.
by Wolf Richter for Business Insider, posted Aug. 30, 2011
Please print us more money. We want you to prop up the stock market.
Everybody knows it’s a Ponzi scheme that will collapse without your support.
You don’t want us to end up like Bernie Madoff’s clients.
No, Ben, we love Ponzi schemes. We get in early and get out before they collapse.
That’s why we’re rich. The bad thing is that they sometimes collapse before we can get out.
But you already bailed us out twice in the last couple of years through printing trillions of dollars. Why not a third time?
That will also keep the bond-market bubble inflated. We have to admit that you’ve done an excellent job there, hands down. Negative real yields all the way up the yield curve!
Awesome. Now if you could just print a few trillions and buy up the sovereigns from the PIIGS. Euro crisis over. End of story. And we’d get richer because we’d sell them to you at face value though we bought them at fifty cents on the dollar.
And why not forever? Just keep printing. Because as soon as you stop, stock markets will crash again, and credit markets will seize, and then we’re back on this awful ride to hell.
Of course, it’ll cause inflation, which is good. You yourself said that. You stated many times that you want inflation. In fact, you said that one of the goals of the Fed, after propping up the markets, is to create inflation. So stick to it, Ben. Don’t slack off suddenly just because some cowboy threatened you.Read more: