Tag: Fed
David Stockman Alienates Both Ends of The Political Spectrum
David Stockman wrote an intriguing article which appeared in the NY Times. That it appeared in the Times is noteworthy itself, for it contradicts so many liberal shibboleths the paper has supported (promoted) for many years. Its appearance is less likely to reflect the first steps to Damascus and may be a sign of financial [...]
Hope and Crosby Never Went to Zimbabwe
Bob Hope and Bing Crosby made a series of movies together entitled “Road to …”. The first, made in 1940, was “The Road to Singapore.” The series was successful and included destinations such as Bali, Zanzibar, Rio, and Morocco. In all, I believe seven different movies were made over about a twelve year period ending [...]
Federal Reserve Policy Ensures Inflation
The Federal Reserve is the enabler of Federal government’s profligacy. It plays this role by monetizing the debt, i.e., purchasing Treasury bonds that otherwise could not be sold, or at least not sold for the artificially low interest rates that currently prevail. Since the financial crisis, the Fed’s balance sheet has risen from $800 Billion [...]
Economics Is A Subset Of Common Sense and Logic
I argue that the economy won’t improve from the standpoint of economics. Many do not (justifiably) trust economic analysis or reasoning. They feel more comfortable with what is sometimes called “good old common sense.” Along those lines, a reader sent in a comment that provides a common sense conclusion identical to the less common (and [...]
Why The Fed Makes Matters Worse
For those who don't understand the damage being done by the Federal Reserve, Jerry O'Driscoll provides a short Austrian description why. Mr. O'Driscoll penned this in response to a piece written by John Taylor in the WSJ. Easy Money, Slow Growth January 29, 2013 by Jerry O’Driscoll In today’s Wall Street Journal, John Taylor explains why the U.S. recovery [...]
A Madoff Market
Fantasy is fun while it lasts. But reality eventually intercedes and interferes with even the mildest fantasy. Those way out in fantasy land are especially vulnerable to disappointment. So it is for those betting on the stock market and an economic recovery. More Bad Information There is no economic recovery despite all the media and Washington [...]
Economist as Monkey With Typewriter
Ludwig von Mises, Frederich Hayek and other Austrians believed in the foolishness and errors inherent in attempting to macromanage an economy. None, however, expressed their objections quite as colorfully as Seth Klarman: QOTD: "Modern economies are too complex to be reliably modeled; their connections and correlations are loose and imprecise, the second- and third-order effects [...]
The Non-Recovery In Advance of A Depression
For anyone who believes that there has been an economic recovery, go buy the Brooklyn Bridge. I’m sure there are thousands who would be willing to sell it to you. There will be no recovery until the economy crashes and rebuilds from the ashes. There is too much debt outstanding can never be repaid and [...]
The Psychotic Fed
Whether it is growing older and less patient or whether the world is actually becoming more stupid is an issue I wrestle with periodically. I suspect it is a bit of both. Here is an example of the nonsense that increasingly riles me. This snippet comes from a Reuters report available at CNBC: Dramatic action by [...]
The Federal Reserve: Fraud That Passes For Economic Policy
The Federal Reserve has spoken, again. And again they have said nothing worth hearing, but done so in serious language and tone. Does anyone consider this quarterly spectacle worthwhile anymore? Every quarter, like some pagan ritual, this scene repeats. Market worshipers treat it as some profound economic emanation that has the potential to re-direct the [...]
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david yard
RICHARD RALPH ROEHL
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