The conventional defense of the patent system is that it is essential in order to stimulate creativity.1   For example, in “Don’t Believe the Hype“ (Feb.

Despite a falling dollar, the U.S. trade deficit has continued to increase to new record levels. The total current account deficit1  rose to a record 6.3 % of GDP during the 4thquarter of 2004, exceeding for the first time ever 6% of GDP. What are the implications of this for the U.S. economy? Is it good or bad? Or a little bit of both?

Debt, that is. 40-year mortgages? My friend Eric Englund on the highly-leveraged, Fannie Mae, and especially, its balance sheet. The debt-to-equity ratio is a stunning 43-1 (with 10-12 being an acceptable range for this indistry). In non-banking terms, TWA, I think, had a 10-1 ratio at the point it sank. I think the S&P 500, as a whole, nowadays, averages in the 2.5 range - still way too high. Englund quotes both Roger Garrison and Mises.

Fascinating column here on the “puzzling” rise in short-term interest rates and decline in long-term rates. At least he offers some alternative “gloomy” theories behind our flattening yield curve, but ends on this:

The incredible frenzy generated by UNLV’s failure to defend Hans-Hermann Hoppe’s academic freedom continues to produce fallout for both Hoppe and libertarian theory.

The Cato Institute has released its annual tax report card on the nation’s governors. The report card’s grading is based on 15 objective measures of fiscal performance. Governors who have cut taxes and spending the most receive the highest grades. Those who have increased spending and taxes the most receive the lowest grades.

* Executive Summary

* Report (72 pages)

[To be published without footnotes in IP Law & Business, a trade publication for IP attorneys; this version includes references and links. Note: I assumed here the utilitarian criterion normally used to commend IP rights without challenging it.]

Entrepreneur Charged With Tax Evasion:

Austrian economics lacks a formalized, self-conscious theory of environmental economics. But in fact all of the major elements of such a theory already exist and in that sense what is needed is to piece together the relevant aspects of Austrian economics in order to draw out and focus a theory that is already there.