Posts filed under “Politics”
Quantitative easing over. It is a good occasion to consider what we know about central bank intervention, when it is appropriate and when it isn’t. We have a century of broad and deep central bank history and data upon which to make our assessment.
Yet we seem to ignore much of what has been learned in favor of unproven beliefs and disproven zombie ideas.
Are we doomed to repeat the same errors? When it comes to economic policy, it certainly appears that way. Despite a century of historical experience, inflationistas and deficit scolds on both sides of the Atlantic recommend the same wrongheaded policies over and over.
A bit of background: In 2010, a group including Michael J. Boskin, Niall Ferguson, James Grant, Douglas Holtz-Eakin and others, published an open letter to the Federal Reserve Chairman Ben Bernanke. It was a critique of QE, and warned the program of bond-buying would debase the dollar and lead to higher inflation.
At the time, I found the letter full of the sorts of pompous predictions and arrogant self-assurance that is often the subject of criticism in these columns. Whenever that happens, I make a note to myself to revisit the issue a few years hence.
From Transparency International: The OECD Anti-Bribery Convention, adopted in 1997, requires each signatory country to make foreign bribery a crime for which individuals and enterprises are responsible. The Convention is a key instrument for curbing the export of corruption globally because the 41 signatory countries are responsible for approximately two-thirds of world exports and almost…Read More
No, you are not going to die from Ebola. To quote a wag on Twitter, “More Americans have been married to Kim Kardashian than have died from Ebola.” But the latest scare does have a small positive: It provides me with yet another opportunity to lecture you about how incredibly dumb your lizard brain is….Read More
“We are in the business of making mistakes. The only difference between the winners and the losers is that the winners make small mistakes, while the losers make big mistakes.” -Ned Davis I began my career in finance on a trading desk. You learn some things very early on in that sort of…Read More
click for giant graphic Source: FT The U.S. dollar is still king of global currencies. The dollar made up 60.9 percent of foreign exchange reserves and was used in 42.1 percent of global payments. Some countries, though, contest how much influence the U.S. dollar really has. The term “exorbitant privilege,” coined by former French…Read More
Source: Societe Generale Albert Edwards, the insightful but not especially upbeat analyst at Societe Generale SA, writes to warn: The sequence of events which might flow from a Yes vote may be as unpredictable and as uncontrollable as those of the late 1980s in Eastern Europe, which led to the ultimate demise of the…Read More
9/11 Commission Chairs, Congressmen and Intelligence Officers All Call for Declassification The 9/11 Commission Co-Chairs – Lee Hamilton and Thomas Kean – have called for the 28-page section of the 9/11 Commission Report which is classified to be declassified. Kean said that 60-70% of what was classified shouldn’t have been classified in the first place: Congressman Thomas…Read More