Wednesday, February 29, 2012
Tuesday, February 28, 2012
"Give me control over a nation's currency, and I care not who makes its laws."
– Baron M.A. Rothschild
Central banking is a curse. You can't "get it right" with monopoly fiat. You can have a free market in every facet of the economy but if the money itself is controlled, forget about it. You're doomed to recession, depression, inflation and, ultimately, social chaos and resurgent ruin. Some understand it better than others.
Monday, February 27, 2012
Friday, February 24, 2012
Thursday, February 23, 2012
Wednesday, February 22, 2012
2. Regulations are static. Markets are dynamic.
3. Regulation is most effective when it changes the incentives of the regulated.
Meltzer's new book: Why Capitalism?
A review of the headlines of the past decade seems to show that disasters are often part of capitalist systems: the high-tech bubble, the Enron fraud, the Madoff Ponzi scheme, the great housing bubble, massive lay-offs, and a widening income gap. Disenchantment with the market economy has reached the point that many even question capitalism itself.
Allan H. Meltzer disagrees, passionately and persuasively. Drawing on deep expertise as a financial historian and authority on economic theory, he provides a resounding answer to the question, "why capitalism?" Only capitalism, he writes, maximizes both growth and individual freedom. Unlike socialism, capitalism is adaptive, not rigid--private ownership of the means of production flourishes wherever it takes root, regardless of culture. Laws intended to tamper with its fundamental dynamics, such as those that redistribute wealth, fail. European countries boasting extensive welfare programs have not surpassed the more market-oriented United States. Capitalism does require a strong legal framework, Meltzer writes, and it does not solve all problems efficiently. But he finds that its problems stem from universal human weaknesses--such as dishonesty, venality, and expediency--which are not specific to capitalism. Along the way, he systematically analyzes the role of government, positing that regulations are static, but markets are dynamic, usually seeking ways to skirt the rules. Regulation is socially useful if it brings private costs into line with social costs (for example, the cost of taxes to hire policemen compared to that of the impact of rampant crime); if it doesn't, regulation simply invites circumvention.
Friday, February 17, 2012
Thursday, February 16, 2012
The wristbands, sold for $5 each, are intended to fund loans to small businesses, nonprofits and other organizations that will create American jobs.
New figures released by the company on Thursday, show the ongoing Create Jobs for USA program has so far raised more than $2 million. Coupled with $5 million in seed money already donated by Starbucks, the company expects the program to create at least 2,300 jobs.
That said, the money takes time to trickle down to business owners and heads of nonprofits. To get from the Starbucks cash register to a small business or agency, the donations first pass through the Opportunity Finance Network, which then gives grants to community development financial institutions, or CDFIs. Those lenders are tasked with doling out low-interest loans to small businesses and nonprofits in need.
So far, 278 loans have been made in 31 states across the country.
Wednesday, February 15, 2012
Tuesday, February 14, 2012
Monday, February 13, 2012
Friday, February 10, 2012
Thursday, February 9, 2012
Wednesday, February 8, 2012
Monday, February 6, 2012
Friday, February 3, 2012
Thursday, February 2, 2012
As is often the case, the ability and willingness of households to spend will be
an important determinant of the pace at which the economy expands in coming
Only a Keynesian believes that consumption drives the economy rather than production.
Consumers are buying iPhones ONLY because Steve Jobs and his team designed and manufactured them. No production, no consumption.