There is such a thing as society -
it’s just not the same as the state.

A review of the US Federal Reserve’s own document: “FEDERAL RESERVE statistical release, H.4.1: Factors Affecting Reserve Balances of Depository Institutions and ?Condition Statement of Federal Reserve Banks”, issued on August 23rd 2011, reveals some interesting information about the state of the Federal Reserve, the US central bank: it’s very nearly bust. As it is indirectly the lynchpin of the global financial system, that matters to the UK.

via ConservativeHome’s Platform: Steve Baker MP: The Fed is very nearly bust and it is probably not alone amongst central banks.

Via ConservativeHome’s Platform: Steve Baker MP: Accounting has never been so exciting:

There is a growing awareness that one of the main contributors – if not the main contributor – to the severity of the financial crisis was the system of accounting rules under which UK banks continue to operate. In particular, the culprit is the system of International Financial Reporting Standards (IFRS), an EU-sponsored regime which has applied to UK and Irish banks since 2005. It’s something Howard Flight covered in Fixing the Accounting Botch here on ConHome and which I highlighted with a ten-minute rule bill, which appeared on the order paper for second reading on Friday.

But enough of banks and the institutional flaws in banking: following today’s statement, I have health papers to read…

Over on ConservativeHome, I have responded to one of Paul Goodman’s articles, The dog that didn’t bark on Thursday during Energy questions:

So, the greatest problem humanity faces is how to use increasingly scarce natural resources to create greater prosperity for a growing number of people in the context of a changing environment. The study of that problem is surely economics.

Read more via ConservativeHome’s Platform: Steve Baker MP: The greatest threat to civilisation is not climate change but bad economics.

On Conservative Home’s CentreRight, I have published a political economy popquiz.

The article gives three charts and three related questions:

• State spending as a proportion of the economy since 1900.
• Consumer prices since 1750.
• Debt projections for the western world.

I’ll publish some related thinking next week.

Highlights from the past week:

• On Monday, I attended the beginning of Armed Forces Week in Wycombe.
• Budget statement on Tuesday by the Chancellor. I spoke in the debate receiving a warm reception from Prof. Kevin Dowd on the Institute for Economic Affairs’ blog. The first Cobden Centre Austrian School Seminar began at the Institute of Economic Affairs.
• Wednesday saw a major post-budget event by the TaxPayers’ Alliance and the IEA, followed by lunch with Secretary of State for Health, Andrew Lansley, to discuss health reform and Wycombe Hospital.
• Writing for ConservativeHome on Thursday, I explained why economists disagree, why they are so often wrong and where economic thinking goes next. I followed this up on Saturday with some essential market analysis of the crisis from The Cobden Centre.
• On Thursday evening, I explained to like-minded comrades over dinner how we might deliver and entrench a new open society.
• On Friday, I visited the magnificent Skidz project, which delivers motor training for young people, before dropping in on the Schools Linking Network Celebration event at Adams Park. The evening was beautifully rounded off with a wonderful Patron’s summer party in Hambleden Valley.
• Yesterday, I visited Desborough Playden before enjoying Marlow Bottom’s Rose Carnival. I ended the day giving prizes to inspiring young people at the Muslim Education Centre on Totteridge Drive.

And all this reminds me: time to begin a new Google map for my work as MP…