Tuesday , February 21 2017
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Global Economic Intersection

Is Free Trade Harming the Economy?

Written by Steven Hansen I generally get inspiration from the mindless crap (aka opinion) the media pumps out pretending it is news. The media has turned from being mostly biased towards (and non-objective about) the Obama Administration - and mostly biased against (and non-objective about) the Trump Administration. Could it be people are not objective when it comes to those they like or hate? Follow up: Most of my posts are aimed at cherry picked points perpetrated by the media or...

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Bank of England Endorses Post-Keynesian Endogenous Money Theory

by Philip Pilkington Article of the Week from Fixing the Economists Well, the Bank of England has finally come out and said it: loans create deposits; banks create money and don’t simply lend out savings; and the money multiplier in the economics textbooks is false. Actually, we’ve known this for a long, long time. While the BoE report references much Post-Keynesian work — including early work by Nicholas Kaldor and Basil Moore’s path-breaking 1988 book Horizontalists and Verticalists —...

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How the U.S. Treasury avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

by Michael Hudson, as published in the Social Sciences Research Network The Eurozone today is going into the same deflationary situation that the U.S. did under Jackson’s destruction of the Second Bank, and the post-Civil War budget surpluses that deflated the economy. But whereas the Fed’s creation was designed to inflate the U.S. economy, Europe’s European Central Bank is designed to deflate it — in the interest of commercial banks in both cases. Follow up: 1. Introduction Deflation...

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Tax Reform: The Good, the Bad, and the Ugly, Part Two

by John Mauldin, Thoughts from the Frontline “Taxation is the price we pay for failing to build a civilized society.” – Mark Skousen “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”– Ronald Reagan Follow up: Taxation is almost never an exciting subject, nor do we want it to be. The best tax system would be silent and unobtrusive. It would raise enough revenue to...

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Wine Descriptors Reconsidered

by Elliott Morss, Morss Global Finance Introduction There are many ways to portray wines. Most have limited value because they do not help drinkers distinguish between wines they like and dislike. This piece reviews the descriptors in use and suggests ones that will be helpful. Before looking at what can be done, consider first the current practice. Follow up: Completely Useless Descriptors Some time back, Richard Quandt wrote an oft-quoted piece: “On Wine Bullshit: Some New Software?”...

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Chaos Theory Applied To Trump Presidency

Written by Steven Hansen The New York Times published its view: The unanimous verdict: Thus far, the Trump administration is a textbook case of how not to run a complex organization like the executive branch. Follow up: And they found a few Ph.Ds to backup their statement: “This is so basic, it’s covered in the introduction to the M.B.A. program that all our students take,” said Lindred Greer, an assistant professor of organizational behavior at the Stanford Graduate School of...

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Tax Reform: The Good, the Bad, and the Ugly: Part One

by John Mauldin, Thoughts from the Frontline Vizzini: He didn’t fall?! Inconceivable!Inigo Montoya: You keep using that word. I do not think it means what you think it means. – From The Princess Bride “A tariff is a scale of taxes on imports, designed to protect the domestic producer against the greed of his consumer.” – Ambrose Bierce “Vast possibilities matured into realities before their very eyes. Nevertheless, they saw nothing but cramped economies struggling with ever-decreasing...

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Thirlwall’s Law in Historical Context

by Philip Pilkington Fixing the Economists Article of the Week There has been some reticence on the blogs to discuss Thirlwall’s Law and I myself have also been somewhat reluctant to deal with it in any great detail (although I did hint at some problems with it in this post). I think it might be worth discussing it in more depth, however, because I think that the model it is based on is actually quite interesting — albeit misleading. I will rely for this exposition on a very succinct...

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Gross Attention to the Gross Domestic Product

Written by Dan Lieberman, Alternativeinsight  Prepared by the Bureau of Economic Analysis of the Department of Commerce, the Gross Domestic Product (GDP) serves primarily as an accounting function for the United States government  ̶  one statement in a description of national accounts. By summarizing the monetary value and sources of services and production, the GDP reports all expenditures in the U.S.economy. Anxiously awaited, the economic statistic is employed to indicate and forecast...

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The Economy Continues To Claw Its Way Upward?

Written by Steven Hansen Will the Trump administration effect the economy - either positively or negatively?  I have written in the past that it takes a long time (except for helicopter drops of money directly to consumers) for fiscal policy actions to impact the economy overall. Follow up: So far, the only event since 20 January I have seen which would affect the USA economy is the increase in consumer and business confidence starting the week of the election.  I am not a fan of...

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