In light of Bernanke’s plans to purchase $600 billion of longer-term government debt, many academic economists are beginning to worry: Could the Federal Reserve itself become insolvent? In this article I’ll explain these fears and I’ll argue that the Fed, with its printing press, cannot really go bankrupt the way other corporations can.
I observed in “Legislation and Law in a Free Society” various problems with using legislation to “make” law. For one thing, it requires a legislature, which requires a state. For another, it conceives of law as being “made” by human will rather than natural principles “found” by people seeking justice. One problem with IP law–mainly patent and copyright, but also trade secret and trademark, to varying degrees–is that it requires modern state legislation. It cannot be created without it.
There’s an old joke about a man who, as he enters a psychiatrist’s office, stops, extends his arms forward, and claps three times. He then turns to the right, repeats the clapping, and continues to the right until he has come all the way around.
The psychiatrist asks him, “What are you doing?”
He replies, “This will keep elephants away.”
The psychiatrist tells him that they are in the middle of the city and on the 20th floor and that he can assure him that there are no elephants within at least 10 miles.
Ralph Raico reviews This Perfect Day, a science fiction ”dystopian” novel by Ira Levin. Read what he has to say about the great book on super-computers and global government.
Peter Calcagno is an Associate Professor of Economics at the College of Charleston. He earned his B.S. in Economics and History from Hillsdale College and Ph.D. in Economics from Auburn University. Professor Calcagno has previously worked at Wingate University, Jacksonville State University, and Georgia State University. He is particularly interested in Public Choice Economics, and Political Economy. In 2008 he received the School of Business and Economics Distinguished Teaching Award.
John Carney offers an interesting point of view on the Austrian cycle theory at CNBC. I corresponded with him on this and he is more correct than he seems to be on first read.
