Tag Archives: debt

Fed Set on Debt Monetization

The Federal Reserve begins to monetize government debt, hoping to combat deflation. Continue reading

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Sure, Evidence Looks Keynesian If That’s How You Doctor It

In his most recent op-ed, “That ’30s Feeling”, Paul Krugman draws parallels between current calls for austerity and the Germany of the 1930s. This time, factual history is against Krugman’s thesis. Germany’s collapse in the early 1930s was hinged on debt and the inability of their central bank to pay for it. Continue reading

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Robert Murphy on the Double Dip

I’d like to come to Murphy’s defense regarding inflation and offer some points on the possibility of a double-dip. For the time being, I predict a continuation of the upward inflationary trend. We are seeing a greater destruction than production of wealth, as it flattens the structure of production. This is a trend towards impoverishment, not recovery, and does indicate the possibility of an increase in the rate of change of CPI. Continue reading

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Irrelevance of Fiscal Austerity

Krugman remains bewildered at the G20’s call for fiscal austerity by pointing out that slashing stimulus spending is not bound to have a major impact on debt growth and that such a policy could have long-term harmful side effects. The latter concern is legitimate, at least if you believe that Keynesian countercyclical fiscal policy is the correct prescription for our current recession, but I feel that Krugman leaves out a few key details. Continue reading

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Great Links: 27 May 2010

Some interesting links for the week of 27 May 2010. Continue reading

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Generally Dead Motors

General Motors will not be successful without more fundamental changes to its structure, including looking at union-employer relations. Continue reading

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A Greek Catastrophe

A video by Stefan Molyneux on the 2010 Greek debt crisis. Continue reading

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Déjà vu?

The current global debt crisis is looking very similar to that of the 1930s. Continue reading

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Inflating Out of Debt

Today’s public debt cannot be inflated away, because the price of long-term social insurance programs will also rise. Continue reading

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Shifting Economy

The Economist publishes an interesting article which is half-correct, but still lacking in sound economic theory. There has been no shift to savings. Savings are a necessary part of economic growth. Continue reading

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