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Niall Ferguson reviews “Lords of Finance”


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. With massive bank failures on both sides of the Atlantic, it became clear that the Lords of Finance had bungled things. “Unless drastic measures are taken to save it,” he […]

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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 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 […]

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First 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 first benefit at the expense of those receiving the money last. “The fiat dollar is an ‘elite’ system,” Jim Grant told the Wall Street Journal recently, “and Wall Street is […]

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On 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 for a period. Lower interest rates fool the public into believing that more savings are available, that the consumer is okay with more resources being diverted from meeting present consumption […]

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Quote 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 conduct of both public and private life; a spirit dazzling and yet dastardly; reckless of consquence and yet shrinking from responsibility. And in the end, it has so overstimulated the […]

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Bagehot’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 this work I have pointed out a deep malady, and only suggested a superficial remedy. I have tediously insisted that the natural system of banking is that of many banks […]

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Central 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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