The central banks don’t like that cash makes it hard to cut rates to below zero. 0% is pretty much as far as they can go (though there are exceptions such as in Denmark.) Boomberg reports;
Let’s get one thing out of the way. Both Paul and and Cruz are libertarianish. Paul more libertarianish than Cruz. Neither however is really pushing a hard core liberty oriented agenda.
In the attached article Paul and Cruz aren’t the real focus anyway. Crony capitalism is.
The author tries to make the argument that crony capitalism is what capitalism actually is. There is no distinction between capitalism partnered with the state and capitalism in general. It’s the same phenomenon.
This is the argument that many big government people try to make all the time on this site, because it is what fits the statist worldview. It is what people have been taught all their lives. I was certainly taught this.
On one side are the “progressives,” owners of progress, good government, making the world better and more fair. On the other side there are the “capitalists” monsters of greed and exploitation. Angels and demons.
This worldview is as simple as it is simple minded.
Iceland stands like a sentinel at the gates of the Arctic and astride the Mid-Atlantic rift. Part of Scandinavia but also the last stone hop to North America it is a place which breeds peculiarity. With a population of under 330,000, less than the population of Wichita, Kansas, this peculiarity is compounded. Throw in month long winter nights and communal hot spring spas and one can understand why the tiny country produces such weird (and often interesting) furniture, music, and economic ideas.
Attached Ash Navabi at the Mises Institute examines one of Iceland’s most recent idea exports, sovereign money.
Water policy in California is bizarre. I had no idea how bizarre until Jerry Brown declared his water emergency last week.
With 39 million people living in a semi-arid to desert environment (at least the southern 2/3 of California) doesn’t it stand to reason that at some point water might become a critical issue? A really critical issue? Doesn’t it also stand to reason that the people of California should be priority number 1 when it comes to water, not a politically powerful agriculture sector which only constitutes 2% of the California economy while taking 80% of the water? (Though there are of course apologists for ag.) But the “planners,” like they always do, thought they had the situation in hand.
As we’ve said before the people who most fear a legitimate (semi) libertarian movement within the GOP are the old big government Republicans, it’s not liberals. (At least not yet.)
There is a cadre of Washington DC neocons who are running around with their hair on fire right now because of the warm response Rand Paul continues to get from the public. The establishment, the consultants, the big military, the “deficits don’t matter” crowd feel right now that they have been outmaneuvered by Paul. And they can’t believe it.
This is clearly indicative of a healthy and improving world economy. Everything is just fine.
Piketty has largely been “taken down” already. That the economist does not acknowledge that the current fiat money system and the financialization of the world economy generally is what is driving inequality, not “capitalism,” is a huge problem. To say the least.
But others have come after Picketty from other angles.
Hayek is one of my favorite economists. I have a picture of him in my office.
Well this is pretty interesting. I think most of us who are paying attention have lost a lot of faith in cash over the past few years, but it sure is something when the head of the Federal Reserve admits on camera that the dollar isn’t a “convenient” store of value.
He who is prudent and lies in wait for an enemy who is not, will be victorious. – Sun Tzu, The Art of War
Being unconquerable lies with yourself; being conquerable lies with your enemy. – Sun Tzu, The Art of War
As we’ve said before, the SHTF moment to watch for is the day the dollar loses reserve currency status. As we’ve also said, this day is still probably pretty far off. But one gets the sense that things are very fluid and increasingly so in the global money game these days. It’s almost like a financial “cold war.” Nothing happening which is too hot. Which forces any drastic moves. But a war is being waged none-the-less. The US and dollar dominance are under sustained attack and unfortunately we have exposed ourselves thanks to our profligate ways.
Can we get our act together? Can we act like adults in coming years? I don’t know. We take too much for granted. We’ve been fat and happy for a very long time. Perhaps we aren’t hungry enough.
I do think America can be hungry (in the good sense) again however. But there needs to be fresh blood in leadership – political, financial, and elsewhere.
What is of particular note is that this paper comes from a Brookings Institution scholar. Brookings is generally liberal in its disposition.
I am not keen on the prescription. Notice that the author comes short of calling the Fed itself unconstitutional. But at least there is some criticism of the Fed coming from the lefty camp. The excuses for the Fed have gotten embarrassing of late.
This is a bit creepy.
Though it is true that there is lots of misinformation on the web, and that the quest for higher quality search results is very good one, that the most used search engine in the world may soon be in the business of defining what is “true” and what is not is of some concern.
Well here’s a shock. Lloyd “my company should have died in 2008 but was bailed out by the taxpayers” Blankfein doesn’t think there’s a place for free markets. I wonder why?