Global Economy

Back in January, ECB President Mario Draghi doubled down on his earlier commitment to do "whatever it takes" to prop up the European economy with easy money. He wasn't joking.

In a remarkable TV interview, Otmar Issing, the former Chief Economist of the European Central Bank and a former member of its Board, dismisses negative interest rates as a solution to what ails Europe.

Some old economic myths never die, and presidential candidates are once again running on old fallacies about free trade. In truth, uninhibited trade helps to make everyone wealthier, whether it happens domestically among neighbors, or internationally.

The world's largest container ship just entered a US port. Just in time for record low levels in the Baltic Dry Shipping Index, which is a measure of how much ships can charge.

Why, with interest rates historically low, are businesses not investing in the much predicted boom? Could it be business owners know more than the central bankers?

Central banks worldwide are putting their faith in negative interest rates. Unfortunately, these central bankers do not understand what interest rates are supposed to do, or how manipulating them will lead to a bust.

This incident is one more example that demonstrates the contempt with which the US government holds private companies. Private companies are literally being conscripted to serve the state.

Central Banks now pay interest on bank reserves held at the Fed. It may sound like only a minor change, barely worthy of notice, but it's actually a very recent and radical experiment for central banks, with large implications for monetary freedom.

Between conflicts with Eastern Europe, and the threat of a Birtish exit, the EU has some real problems. 

Whether we're talking about central banks or the US Supreme Court, governments everywhere continue to centralize power in the hands of the very few. The problem with this, though, is that successful central planning is impossible and leads to economic chaos.