Via The great liquidity crisis – 94 years ago, Niall Ferguson provides an instructive review of Lords of Finance: 1929, The Great Depression, and the Bankers who Broke the World: By the summer of 1931, however, it was dawning even on Norman that the world economy was falling off a cliff. […]
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ConservativeHome’s Platform: Steve Baker MP: The Fed is very nearly bust and it is probably not alone amongst central banks
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 […]
Read MoreFirst in Line for New Money – Doug French – Mises Daily
Via First in Line for New Money – Doug French – Mises Daily: Increases in money aren’t sprinkled from the sky, floating indiscriminately into whoever’s hands are in the right place at the right time. Money-supply increases occur through the commercial banking system and Federal Reserve. Those who receive the money […]
Read MoreOn the biggest threat to our prosperity
From a superb article by Detlev Schlichter, which I recommend in full: Of course, by printing new money, expanding the central bank balance sheet and artificially lowering interest rates, – something that has been done on a vast scale for decades on end! – extra economic activity can be generated […]
Read MoreQuote of the Day from Sybil by Benjamin Disraeli – 1845
Nor have the demoralising consquences of the funding system on the more favoured classes been less decided. It has made debt a national habit; it has made credit the ruling power, not the exceptional auxiliary, of all transactions; it has introduced a loose, inexact, haphazard, and dishonest spirit in the […]
Read MoreBagehot’s REAL opinion » The Cobden Centre
Walter Bagehot was the author of the seminal 1873 book on banking Lombard Street: A Description of the Money Market (read online, buy), which seems often to be taken as a justification for the present monetary orthodoxy, including the actions of central banks: I know it will be said that in […]
Read MoreCentral banking and the economic consensus condemned
Via The Cobden Centre: The absurd tragedy of our situation, explained brilliantly here (albeit in a US context), is astonishing. For a more formal corrective, see this primer.
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