Opponents of austerity have come out to denounce the idea that it’s bad for governments to borrow. They note that there are benefits to borrowing. The distinction they fail to make is that there’s a big difference between private borrowing and government borrowing.
Government failure was being felt everywhere this week, from the massive law-enforcement failure in Sen Bernardino to the crumbling economy in Brazil. Meanwhile, government tells us it only needs a little more money, power, and time to solve all problems.
Today's BLS employment data release may not be as "solid" as the media are reporting.
As the economy worsens, the Brazilian Congress this week announced that it will impeach the president of Brazil. Unfortunately, impeaching President Dilma Rousseff by itself will do little to fix Brazil’s economy when Brazilian politics remains dominated by anti-market forces.
There were many state and local elections in the US this week, but few of them will result in anything that will combat widely held and popular errors about central banking, drug prohibition, and the global environment.
Historically, reserve currencies have arisen without the help of the IMF, but we’re now witnessing a situation in which the IMF may declare the Chinese yuan a “reserve currency” as part of a larger game by global elites to manipulate global exchange rates.
The Fed's Federal Open Market Committee renewed its commitment to easy money this week. The Fed will pretend to be committed to raising rates while doing nothing, and its ongoing war against deflation will continue to make us poorer.
The problem with the central bank's easy-money policies is not primarily that it leads to rising prices. The big problem is that it leads to the crippling of the wealth creation process and the movement of resources from productive to non-productive sectors.
