ECB under pressure to abandon superior policy stance

Balls of euro banknotes

The European Central Bank is under pressure. Inflation in the eurozone is at 0.7 percent but as Ben Bernanke supposedly stated, we are never sure if we measure these things correctly. So by all we know, the eurozone may already be in mild deflation. This should come as no surprise. The eurozone has practically had zero money growth and zero growth in lending for some time. As reported today, growth in the M3 money aggregate fell to a snail’s pace of 0.8 percent year-over-year in April. Loans to the private sector are 1.8 … [Read more...]

What is wrong about the euro, and what is not

Photo of Angela Merkel

Every Monday morning the readers of the UK’s Daily Telegraph are treated to a sermon on the benefits of Keynesian stimulus economics, the dangers of belt-tightening and the unnecessary cruelty of ‘austerity’ imposed on Europe by the evil Hun. To this effect, the newspaper gives a whole page in its ‘Business’ section to Roger Bootle and Ambrose Evans-Pritchard, who explain that growth comes from government deficits and from the central bank printing money, and why can’t those stupid Europeans get it? The reader is left with … [Read more...]

We are on the road to serfdom

Road

We are now five years into the Great Fiat Money Endgame and our freedom is increasingly under attack from the state, liberty’s eternal enemy. It is true that by any realistic measure most states today are heading for bankruptcy. But it would be wrong to assume that ‘austerity’ policies must now lead to a diminishing of government influence and a shrinking of state power. The opposite is true: The state asserts itself more forcefully in the economy, and the political class feels licensed by the crisis to abandon whatever … [Read more...]

Europe’s voters say ‘No’ to economic reality

Balls of euro banknotes

"Europe fights back against austerity" was how The Daily Telegraph headlined its weekend election coverage. "Anti-austerity movements are gathering pace across Europe following political earthquakes in France and Greece. A total of 12 European governments have now been dismissed in three years." As the European welfare state is officially in its death-throes none of us should be surprised if political strife gets cranked up to eleven. I firmly expect that we will see much more of this in the future. While I can understand … [Read more...]

Brain Sematary

Stephen King

The debate over taxing the rich has reached new depth in the United States with a true man of letters entering the fray. Depth, that is, as in low point. What the essay by acclaimed and popular novelist Stephen King lacked in profundity it made up for in profanity: Tax me, for f@%&'s sake, was Mr. King's eloquent plea to the government he so admires. One of the freedoms that Americans of any income bracket still enjoy is the freedom to give more to the government than the government already takes from them by force. If … [Read more...]