Tag: Inflation

The Fed’s Immiseration of People Who Live on Interest Earnings »

As I have noted previously, the Fed’s policy of acting to hold interest rates well below free-market rates in recent years has had the effect of greatly diminishing the earnings of people who rely on interest income. Such people include especially many retirees who do not wish to hold risky assets with substantial variability of...
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Taxes for Alms? Or for Crosses? »

In claiming during his remarks at the National Prayer Breakfast on Thursday that he wishes to tax the rich because that is what Jesus would do, President Obama demonstrated he is equally confused on the teachings of Jesus, as he is with history and economics: The rich should pay more not only because “I...
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The Fed’s Inflation Target »

The Federal Reserve has announced what appear to be inconsistent policy targets for the upcoming year. The Fed says they want to keep interest rates low at least through 2013, meaning a continuation of easy money policy, and has also announced that their inflation target is 2%. The inflation rate for 2011 was 3.2%....
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Robert Higgs Is Interviewed on The Peter Schiff Show on the Folly of Government Interventionism »

Senior Fellow Robert Higgs is interviewed here by Thomas Woods on “The Peter Schiff Show.” Dr. Higgs discusses how the federal government prolonged and deepened the Great Depression of the 1930s that lasted until after World War II when such policies were either ended or radically reduced. Moreover, the current attempts at central-government planning...
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The Government Is Expropriating Private Wealth at a Rapid Rate »

About a month ago, I posted in regard to what I called “the euthanasia of the saver.” This comment had to do with the fact that nominal interest rates in the United States for financial investments such as bank certificates of deposit and bank savings accounts—the kinds of investments traditionally employed by retired persons and small savers, who...
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The Euthanasia of the Saver »

In chapter 24 of The General Theory of Employment, Interest and Money, John Maynard Keynes laid out his screwball idea that capital might soon become, or be made to become, no longer scarce; hence no payment would have to be made to induce people to save, and that condition would be splendid inasmuch as it would...
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A (Brief) Critical Review of “This Time is Different” »

Eastern bloc economists Carmen Reinhart, she of the University of Maryland, and Kenneth Rogoff, he of Harvard, have gotten rave reviews for This Time is Different: Eight Centuries of Financial Folly, published in 2009 by Princeton University Press. I started reading it today, now that the book is out in paperback. It didn’t take...
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Global Regime Uncertainty »

Dr. Brendan Brown, Head of Economic Research at Mitsubishi UFJ Securities International (London), recently cited Senior Fellow Robert Higgs‘s work on regime uncertainty—both as the cause of the prolongation of the Great Depression as well as today’s economic malaise—suggesting that his premise could well be expanded to explain today’s global economy. In his Economic...
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Influential Financial Economist Urges Turn to Austrianism »

Thomas Mayer is the chief economist of Deutsche Bank Group and head of Deutsche Bank Research. He has an impressive background as a highly placed analyst in major private and public financial institutions. Which is to say, when he speaks, people are much more likely to pay attention and to give weight to what he says than...
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Rogoff on Inflation »

The Sunday Boston Globe has an interesting profile of Ken Rogoff, whose views I respect, despite many disagreements. His recent call for a burst of “moderate” inflation to reduce the debt overhang has gotten a lot of play in the press. I don’t favor the idea, but at least Rogoff acknowledges, not only the...
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