Americans have benefited mightily by holding and trading with the world’s reserve currency, though most people haven’t given it a thought. No one remembers when the pound sterling held this distinction a hundred years ago.
The gold standard has one tremendous virtue: the quantity of money under the gold standard is independent of the policies of governments and political parties. It is a form of protection against spendthrift governments.
The task at hand is the study of the problems of the determination of prices and interest rates. This task requires a sharp distinction between money-certificates and fiduciary media.
The taxpayer is backstopping more credit risk than ever. The Post reported that nearly 30 percent of the loans Fannie Mae guaranteed were to borrowers whose house payment exceeded half of their monthly income, up from 14 percent in 2016.
Thanks to politics, confirmation bias, and bad monetary economics, central banks have a lousy record when it comes to economic forecasts.
We're told more government spending will get the economy back on track. But increasing government spending weaken the process of wealth creation.
Corporate cost cutting sets the stage for future gains in profitability and productivity, and there is no resulting "paradox of thrift" requiring easy money policies to "fix" the problem.
The taxpayer is backstopping more credit risk than ever. The Post reported that nearly 30 percent of the loans Fannie Mae guaranteed were to borrowers whose house payment exceeded half of their monthly income, up from 14 percent in 2016.
The task at hand is the study of the problems of the determination of prices and interest rates. This task requires a sharp distinction between money-certificates and fiduciary media.
There is only one way to strengthen the recovery: To reduce structural imbalances by regaining budgetary sanity and implementing serious measures to attract capital. To fall back into propagandistic optimism would be a mistake.
