Stimulus, to infinity and beyond

Ben Bernanke

There was a beautiful symmetry to last week's policy announcement by the Fed. Precisely a week after the ECB had pledged its commitment to unlimited purchases of Euro Zone government bonds, the Fed declared that its new round of debt monetization - 'quantitative easing' or QE3 - would be open-ended. Unlimited, open-ended. The concept of stimulus has certainly evolved since the crisis started. This should give us reason to pause. 'Unlimited' is not a word that is used much in economics or in business-life. The only thing … [Read more...]

Adam Smith Institute lecture: paper money collapse

Detlev Schlichter adresses the Adam Smith Institute

For those that missed it: Detlev Schlichter addresses the Adam Smith Institute Tuesday 22nd November, 2011. He argues that the present financial crisis is far from over; generally misunderstood and misrepresented, it is far from being a 'crisis of capitalism'. Detlev traces the history of failure of paper money systems and lays out why present policies pursued by various governments and institutions are misdirected and counterproductive. He describes the various endgames facing us. Last Tuesday's talk was organised by … [Read more...]

Bernanke’s blind side

Ben Bernanke

The world financial system is skating on thin ice, and that ice can crack at any moment. The instabilities of the global paper money economy are evident everywhere. In Europe, the debt crisis is picking off one euro-member after another like the protagonists of a teenage horror movie, leaving us in no doubt what the final destination for the core is going to be. Yet - bizarrely and inexplicably - German Bundesanleihen still play the role of safe haven. In the U.S. of A., years of near-zero interest rates and two rounds of … [Read more...]

The Paper Bureaucracy

Picture of Gordon Brown

Gordon Brown as the next head of the IMF? What a splendid idea - at least as long as Charlie Sheen is not available. No seriously, the despicable, interventionist IMF and the unpopular etatist Brown - a perfect match --perfect, I hope for further discrediting the global paper money bureaucracy, the new political elite lording it over us at our expense, the guys who brought you the crisis and now promise to fix everything - with more paper money and more debt and more policy interventions. Here is a man who was never … [Read more...]

Why the Fed is the problem, not the solution

federal reserve

The public pronouncements of politicians and central bankers are singularly unhelpful for understanding what is going on in the real world. As a general rule, these officials struggle under the weight of problems and predicaments that are almost exclusively of their own making. Either they have no grasp of how their actions are really related to the difficulties that seem to occupy them, or they cannot admit to the public, and indeed themselves, that they are the problem, not the solution. This is also and in particular … [Read more...]