Even Bloomberg Notices that Something is Amiss
As anyone who hasn’t been in a coma knows, assorted central bank interventions have failed to achieve their stated goals over the past several years. A recent article at Bloomberg focuses on their failure to reach their “inflation” targets.
Of course, this particular failure is actually reason to celebrate, as it means that consumers have at least been spared an even sharper decline in their real incomes than has been underway in spite of relatively tepid increases in consumer prices (whereby it should always be kept in mind that whether or not such price increases are considered “tepid” depends on on the composition of the basket of goods and services relevant to each individual).
It Can’t Get Any Worse?
On Friday, shortly after the release of the payrolls report, we asked half in jest whether the time had finally come for the market to interpret bad news as bad news, and not as an opportunity to speculate on more central bank largesse. As someone remarked to us later: “You had to ask”.
Photo credit: Paul Cross
Milton Friedman on the Core of the Problem
Below we want present two short video excerpts from a presentation by the late Milton Friedman, in which he is talking about the thorny issue of immigration, including “illegal” immigration – with a hat tip to Mish, who pointed the existence of these video documents out to us.
Friedman goes to the core of the problem. Long-time readers may recall an article by our friend and regular contributor Keith Weiner, which we published a while ago: Immigration for Republicans. Judging from the comments section, this is quite an emotional topic that tends to provoke intense reactions. As it turns out, Keith was making arguments that are very similar to Milton Friedman’s.
Chicago School economist Milton Friedman
Photo credit: The Friedman Foundation for Educational Choice
Sex, Drugs, and Republicans
PARIS – We took the Eurostar train back to Paris from London last night. In our wagon was a group of Chinese businessmen. Drinking, laughing… they were a bit uncouth by European standards. But they were having a good time.
While we were in London, the cabbies were remonstrating against something – ride-sharing app Uber, we suppose. A dozen cabs must have passed before one stopped to pick us up on our way to St. Pancras railway station. Arriving at the Gare du Nord, we feared something similar.
Striking cabbies in London blocking major roads in a vain attempt to preserve their government-granted privileges against market forces.
Photo credit: Luke MacGregor / Reuters
Brussels Alters Capital Requirements to “Spur Lending”
Saints preserve us, the central planners in Brussels are giving birth to new inflationist ideas. Apparently the 2008 crisis wasn’t enough of a wake-up call. It should be clear by now even to the densest observers that a fractionally reserved banking system that flagrantly over-trades its capital is prone to collapse when the tide is going out. 2008 was really nothing but a brief reminder of this fact.
The political and bureaucratic classes will certainly never go back to sound money or free banking. The State’s paws will remain firmly embedded in the business of money, as the modern-day welfare/warfare states and the ever-growing hordes of cronies and zombies they have to keep well-fed have become utterly dependent on fiat money inflation. This will continue until the bitter end. New measures are now being designed to hasten its arrival.
Designed by Bjarke Ingels
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