Understanding Inflationary Finance | AIER
Despite common assertions to the contrary, government spending does not necessarily cause inflation. Whether it does so depends on the willingness of the monetary authority to help finance the government spending by printing money. Inflationary finance, or seigniorage, can be an appealing source of revenue to government officials. Relative to other types of taxes, it […]
Fed Rates Up into 2024?
Federal Reserve Chairman Jerome Powell has made it clear that he sees higher interest rates ahead in his battle against inflation and their unrealistic 2% target. Many traders are now scrambling talking about how Powell said the Fed will probably raise rates more and possibly faster than previously anticipated. They are now taking that as a […]
Strange rebels – Econlib
I recently read an interesting book on reality, entitled The Fabric of Reality. In the book, David Deutsch constructs a unified theory of reality by combining four fundamental theories: 1. Quantum mechanics (multiverse interpretation). 2. Turing principle of computers and artificial intelligence. 3. Popperian epistemology. 4. Darwinian evolution. Deutsch says: In all cases the […]
New York’s stockmarkets are thrashing Hong Kong and London
In 2006 Charles Schumer and Michael Bloomberg took to the pages of the Wall Street Journal to express their concerns about New York. The senator and mayor both feared that the Big Apple was losing its financial edge. It had, after all, captured only one of the previous year’s 24 largest initial public offerings (ipos). […]
Fairy Tales and Perfect Markets
Most modern fairy tales have very misleading endings. There’s a phrase they almost all end with – you can probably already guess what I’m thinking: “And they all lived happily ever after!” What’s misleading about this? It implies that in life, there’s some kind of end state you can reach called “happily ever after” where […]
