Money isn’t abundant in Palo Alto but scarce in Baltimore because the state decreed it so, rather money in circulation is production determined. It’s a market phenomenon every bit as powerful as the production that drives it. There is in fact a free market for money, and it’s exacting.
Monetarism Is Suffocated By Its Endless Contradiction Read More »
The inflation fight was a non sequitur, not to mention that the higher prices had nothing to do with inflation. The wonder is if the various economic religions will ever accept that the fastest path to lower prices isn’t Fed rate fiddling, rather it’s spreading production across as many hands and machines as possible.
The Fed’s So-Called ‘Inflation Fight’ Was a Big, Fat Non Sequitur Read More »
Argentina is already “dollarized.” For Javier Milei to decree dollarization would be for him to insert the state into monetary policy.
Javier Milei Needn’t ‘Dollarize’: Market Forces Have Done It for Him Read More »
For the Fed to require banks to expand their capital cushions in the aftermath of SVB is the equivalent of Andy Reid telling Patrick Mahomes to take laps since Jets quarterback Zach Wilson threw an interception on Sunday.
As Regulators Attack Banks, ‘Systemic Risk’ Finds a New Address Read More »
Sternberg fears “alchemy” blowing up in the faces of bank executives, but the more realistic truth is that there’s not enough.
Banks Deserve – and Need – Much Better Than Their Media Coverage Read More »
Why would Texas politicians, and Texas Republicans in particular, risk their hard-won pro-business brand for political posturing that vandalizes basic economics?
Why Are Texas Republicans Attacking Banks In Texas? Read More »
Every time a government shutdown happens, or is threatened to happen, economics reporters find economists at Goldman Sachs and other prestige institutions willing to tell them how much GDP will shrink due to a lack of near-term government spending.
Goldman Sachs’s Economists Need to Get To Know David Solomon Read More »
Banks, like any business, never run out of money. They run out of investor trust. That’s why the only capital requirement for banks should be no capital requirement. They only succeed insofar as they force banks to sideline funds they’ve rented, and at a cost. To then pretend that any cushion would be sufficient if a bank ran into serious trouble is just silly.
The Dangerous Pointlessness of Bank Capital Requirements Read More »
Governments can only centrally plan the direction of resources insofar as they’ve taken them from us first, and they can only offer tax incentives insofar as they’ve overtaxed us first. The economic damage from their meddling is immediate.
No, There’s No Near-Term ‘Sugar High’ From Government Spending Read More »
In his memoirs about the remarkable rise of The Home Depot, the great Bernie Marcus oh-so-thankfully went against the grain of seemingly all modern thought in writing that “bankers put their careers on the line, and for that we protect them.” Amen.
Savers and Financiers Are the Economy’s Lifeblood, So Treat Them Well Read More »
