Economics

Tens of Thousands Protest in Spain (as Santa Claus dies)

"On Saturday, tens of thousands marched in cities throughout Spain to protest deep bankster driven 'austerity' measures taken by the government. The people are clearly fed up. The sad part of this is that most have no clue as to what are the proper measures that should be taken to reverse the deteriorating economic situation. The only way Spain gets out of its deteriorating situation is by cutting the red tape that makes it difficult for businesses to operate, and to also cut taxes and government spending, so that the country moves away from its current bureaucratic mess and closer to a free market that can spur energy and creativity." Continue reading →

Continue ReadingTens of Thousands Protest in Spain (as Santa Claus dies)

Japan Ramps Up its Monetary Race to the Bottom

"So, the model for Japan today is their version of the New Deal. I'll assume that Japanese politicians will ignore that connection between easy money, inflation and war, and forget that such policies ended rather badly for the Japanese in 1945. LRC's own Mike Rogers reports from Tokyo that 'Japan's Debt Explosion [is] Coming Up'. Earlier, Rogers wrote that even the monied upper classes are starting to worry. Standards of living continue to fall or go nowhere." Continue reading →

Continue ReadingJapan Ramps Up its Monetary Race to the Bottom

In China, Widening Discontent Among the Communist Party Faithful

"Barely two months into their jobs, the Communist Party’s new leaders are being confronted by the challenges posed by a constituency that has generally been one of the party’s most ardent supporters: the middle-class and well-off Chinese who have benefited from a three-decade economic boom. Ordinary Chinese buy into a grand bargain: the party guarantees economic growth, and in exchange the people do not question the way the party rules. Now, many whose lives improved under the boom are reneging on their end of the deal, and in ways more vocal than ever before. Their ranks include billionaires and students, movie stars and homemakers." Continue reading →

Continue ReadingIn China, Widening Discontent Among the Communist Party Faithful

China Accounts For Nearly Half Of World’s New Money Supply Since 2005

"After having less than half the total US deposits back in 2005, China has pumped enough cash into the economy using various public and private conduits to make even Ben Bernanke blush: between January 2005 and January 2013, Chinese bank deposits have soared by a whopping $11 trillion, rising from $4 trillion to $15 trillion! We have no idea what the real Chinese GDP number is but this expansion alone is anywhere between 200 and 300% of the real GDP as it stands now." Continue reading →

Continue ReadingChina Accounts For Nearly Half Of World’s New Money Supply Since 2005

Illegal Drugs: The great experiment

"Decriminalising consumption does nothing to break the grip of gangsters over the drug business. For that to happen, production and distribution also need to be legalised. That is why the experiment under way in the United States is so important. Colorado and Washington now have the chance to create a legal but regulated market in marijuana, similar to those for tobacco or alcohol. One immediate consequence is that the United States will be in breach of the UN Convention. Good. It should now join Latin American governments in an effort to reform that outdated document to allow signatories room to experiment. Imposing a failed policy on everybody benefits nobody." Continue reading →

Continue ReadingIllegal Drugs: The great experiment

Bernanke’s Plan…If He Identifies Bubbles

"So what's Bernanke's plan, should one of these bubbles occur? Throw some bureaucrats at it first! Surely he means some new goofy laws, but can Bernanke also mean price controls? He has said that: 'The achievement of price stability must not and will not be jeopardized…I am also confident that, when the time comes, the Fed will act to ensure that inflation remains firmly under control.' The next step that governments usually take to give the illusion that 'inflation remains firmly under control' is to enact price controls. Will TSA agents be sent into out of the airports and into the streets to make sure that the price of tomatoes aren't 'too high'?" Continue reading →

Continue ReadingBernanke’s Plan…If He Identifies Bubbles

Detlev Schlichter: Bubble trouble: Is there an end to endless quantitative easing?

"Any pretence of the ‘independence’ of central bankers has been unceremoniously dumped in Japan. Ministers take part in central bank meetings and give joint statements with central bank governors afterwards. New Prime Minister Shinzo Abe has made it very clear what he wants the central bank to do (print more money faster, devalue the Yen, create inflation) and to that end he is looking for a new central bank governor. Of course, only accredited ‘doves’ need apply. A few days ago, Mr. Abe also spelled out what skill-set he is really looking for: good marketing skills. Salesmanship." Continue reading →

Continue ReadingDetlev Schlichter: Bubble trouble: Is there an end to endless quantitative easing?

Bernanke Said to Minimize Asset-Bubble Concern at Meeting

"The Fed chairman brushed off the risks of asset bubbles in response to a presentation on the subject from the group, one person said. Among the concerns raised, according to this person, were rising farmland prices and the growth of mortgage real estate investment trusts. Falling yields on speculative- grade bonds also were mentioned as a potential concern, two people said. The 'first line of defense' if bubbles emerge 'needs to be regulatory and supervisory' actions rather than changes in monetary policy, according to Bernanke." Continue reading →

Continue ReadingBernanke Said to Minimize Asset-Bubble Concern at Meeting

Congress Asks Bernanke For Full Risk Analysis On Fed’s Soaring Balance Sheet

"In a letter penned by the Chairman of the House Oversight & Government Reform Committee, Jim Jordan, says that he is 'troubled by the corresponding effect that the Federal Reserve's expanding portfolio could have on current and future economic growth' and has asked the Fed what its 'future plans to unwind the [$3 trillion and rising at $885 billion per month] portfolio' are." Continue reading →

Continue ReadingCongress Asks Bernanke For Full Risk Analysis On Fed’s Soaring Balance Sheet