Mad Statists

Harvard’s Rogoff: Next Fed Chief Must Have ‘Tolerance for Inflation’

"Harvard University Professor Kenneth Rogoff, whose influential 1985 paper endorsed central bankers focused more on securing low inflation than on spurring employment, is highlighting the benefits of a Fed led by either Janet Yellen or Lawrence Summers precisely because they fail his old litmus test. President Barack Obama said Aug. 9 that they are 'outstanding' and 'highly qualified' candidates to replace Ben S. Bernanke, whose term as chairman runs out in January. What qualifies them in Rogoff’s view is their dovishness, a refusal to place too much weight on stable inflation at a time when unemployment is far above its longer-run level." Continue reading →

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How the Fed Goes Bust With Richard Ebeling

"Little ink has been spilled about the Austrian economists, such as Friedrick Hayek, Ludwig von Mises and Murray Rothbard. So we've taken it upon ourselves to interview someone who knew two of them personally. Bob speaks with Richard Ebeling, economics professor at Northwood, about quantitative easing and the future of Bernanke's so-called 'exit.' Then Perianne explores US aid to Egypt and the problems with doling out money to foreign groups. Finally Bob duels Prime Interest regular, Sam Sacks on the BP oil settlement and intellectual property rights." Continue reading →

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Bill Bonner: America’s faith-based economy

"Did Mary really ascend to Heaven on this day? Was she really a virgin? Did she really give birth to the son of God? You need faith to believe such things. Likewise, you need faith to believe that a piece of green paper is ‘money’. You are also supposed to believe that its managers will make sure this ‘money’ holds its purchasing power even as they do their damnedest to undermine it. But to believe that you need more than faith. You need a full frontal lobotomy." Continue reading →

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‘Run and hide’ is Obama administration’s clever plan for next school shooting

"The U.S. Department of Education’s 'live-shooter' section doesn’t recommend that schools arm teachers or employ armed guards. It doesn’t even advise schools to add door locks for classrooms. Instead, the section counsels teachers and students to 'run,' 'hide' and then 'fight' — but only 'if neither running nor hiding is a safe option.' Arne Duncan, the Secretary of Education, does not explain how this guidance differs from the very unsuccessful actions attempted by the 26 victims of Adam Lanza, the lone gunman who attacked Sandy Hook Elementary School. Twenty of those victims were children who were six and seven years old." Continue reading →

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Obamacare: “Let’s Just Make Sure It’s Not A Third World Experience”

"We begin today by checking our premises: In order to imagine something working forever, it must begin to work in the first place. When asked last Friday about what the future holds for the Affordable Care Act, Senate Majority Leader Harry Reid said, 'What we’ve done with Obamacare is a step in the right direction, but we’re far from having something that’s going to work forever.' The law takes full effect Jan. 1, 2014, and the online exchanges launch on Oct. 1, 2013. But lofty expectations are being played down as logistical problems become worse and worse." Continue reading →

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Let’s stop wrecking lives over a bag of weed

"For 29 years, I have defended clients facing marijuana charges in the District. At every initial appearance, without fail, the judge admonishes the defendant either to stay in school or to hold down a job. But most employers in this town will not hire entry-level workers who do not have a police clearance. What crime is increasingly tripping up those looking for work? Possession of marijuana. In 1995, police in the District arrested about 1,850 people for having pot. By 2011, the number had skyrocketed to more than 6,000. There are twice as many marijuana arrests in the District as there are students graduating from D.C. high schools each year." Continue reading →

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Internal Bundesbank Report Predicts New Greek Bailout In Early 2014, Contra Merkel

"An internal Bundesbank document discovered by Der Spiegel states, in opposition to the comments by Germany's electioneering Chancellor Merkel, that Europe 'will certainly agree to a new aid program for Greece' by early 2014 at the latest. As Reuters reports, Frau Merkel has repeatedly played down suggestions Greece will require more aid (or debt relief) in light of German voters major skepticism over moar of their money being flushed into the Mediterranean. The document notes that the risks of the current aid package for Greece are 'extremely high' and that recent approval of the tranche payments were politically motivated." Continue reading →

Continue ReadingInternal Bundesbank Report Predicts New Greek Bailout In Early 2014, Contra Merkel

India raises import duty on gold, silver to 10 per cent

"India hiked import duty on refined gold bars for a third time in eight months to 10 per cent from the earlier 8 per cent, the Finance Ministry said in a statement on Tuesday. The government also raised the import duty on silver to 10 per cent from the earlier 6 per cent, and the factory gate duty on gold bars to 9 per cent from 7 per cent. India, the world's biggest buyer of gold, has been trying to curb imports of the yellow metal, which is the second biggest imported item after crude oil. On July 22, the RBI required a fifth of all gold imports to be used for export, usually in the form of jewellery." Continue reading →

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Aging Chinese apologize for their roles in the Cultural Revolution

"As a teenager radicalised by China’s Cultural Revolution, Zhang Hongbing denounced his mother to the authorities. Two months later a firing squad shot her dead. Now after more than 40 years of mounting guilt, Zhang has ruffled the silence that cloaks China’s decade of turmoil with a public confession. 'Red Guard' youths abused their elders — officials, intellectuals, neighbours, relatives — dragging them into 'struggle sessions', ransacking their homes and driving some to suicide. Only a handful of public confessions have appeared, mostly in recent years as the Revolution’s once-heady teenagers enter their 60s." Continue reading →

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Ron Paul: Why Are We At War In Yemen?

"The US government is clearly at war in Yemen. It is claimed they are fighting al-Qaeda, but the drone strikes are creating as many or more al-Qaeda members as they are eliminating. Resentment over civilian casualties is building up the danger of blowback, which is a legitimate threat to us that is unfortunately largely ignored. Also, the US is sending mixed signals by attacking al-Qaeda in Yemen while supporting al-Qaeda linked rebels fighting in Syria. This cycle of intervention producing problems that require more intervention to 'solve' impoverishes us and makes us more, not less, vulnerable. Can anyone claim this old approach is successful?" Continue reading →

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