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The Expanding Fed Role | Richard W. Rahn | Cato Institute: Commentary: "The Fed is supposed to provide the United States with stable currency yet it now takes $21.60 to equal the purchasing power of $1 in 1913, the year the Fed was established. (In the 124 years prior to the founding of the Fed, there was almost no permanent change in the purchasing power of the dollar. There was some inflation during the Civil War, which was offset by a slow deflation in the 40 years after the war.)
The Fed is supposed to regulate the banking system to provide financial stability, yet far more banks have failed since the Fed was created, and events of the past year illustrate how the Fed has failed at providing financial stability."
Friday, July 10, 2009
Going 'All In' with North Korea | Ted Galen Carpenter | Cato Institute: Commentary
Going 'All In' with North Korea | Ted Galen Carpenter | Cato Institute: Commentary: "The United States should offer a comprehensive bargain to North Korea. Washington should agree to sign a treaty formally ending the state of war on the Korean Peninsula, ink a nonaggression pact, establish diplomatic relations with Pyongyang and end all economic sanctions against the regime, except those that have direct military applications. In exchange, Washington should insist on the simultaneous implementation of a verifiable agreement (including a rigorous inspections system) to terminate North Korea's nuclear program.
Such concessions would cost the United States very little. Signing a peace treaty to end the Korean War would merely formalize the state of affairs that has existed on the ground since the signing of the armistice in 1953. Agreeing to a nonaggression pact is even less of a substantive concession. Even the most reckless American hawks hesitate about advocating an attack on North Korea to achieve regime change — however much all of us want to see that odious system on the ash heap of history. Using military force against North Korea might well trigger a major war on the Korean Peninsula and perhaps a general war throughout East Asia. That is a risk no rational person would wish to take. So giving North Korea "security assurances" (i.e., a nonaggression pact) merely renounces an option we would not want to pursue in the first place.
Similarly, establishing diplomatic and economic relations with Pyongyang is a step the United States should have taken many years ago. Indeed, throughout the 1970s and 1980s, a key component of U.S. foreign policy in the region was a proposal to Moscow and Beijing for cross recognition of the two Korean states. At the end of the cold war, Russia and China both recognized South Korea, but the United States never kept its part of the bargain by recognizing North Korea."
Such concessions would cost the United States very little. Signing a peace treaty to end the Korean War would merely formalize the state of affairs that has existed on the ground since the signing of the armistice in 1953. Agreeing to a nonaggression pact is even less of a substantive concession. Even the most reckless American hawks hesitate about advocating an attack on North Korea to achieve regime change — however much all of us want to see that odious system on the ash heap of history. Using military force against North Korea might well trigger a major war on the Korean Peninsula and perhaps a general war throughout East Asia. That is a risk no rational person would wish to take. So giving North Korea "security assurances" (i.e., a nonaggression pact) merely renounces an option we would not want to pursue in the first place.
Similarly, establishing diplomatic and economic relations with Pyongyang is a step the United States should have taken many years ago. Indeed, throughout the 1970s and 1980s, a key component of U.S. foreign policy in the region was a proposal to Moscow and Beijing for cross recognition of the two Korean states. At the end of the cold war, Russia and China both recognized South Korea, but the United States never kept its part of the bargain by recognizing North Korea."
It Wasn't A 'Coup' | Juan Carlos Hidalgo | Cato Institute: Commentary
It Wasn't A 'Coup' | Juan Carlos Hidalgo | Cato Institute: Commentary: "The Honduran constitution does not establish an impeachment process by Congress. However, in 2003 the constitution was amended, giving the Supreme Court, and not Congress, the duty to handle the processes initiated against 'the highest ranking officials of the State.' This amendment also eliminated the benefit of immunity that high-ranking officials had enjoyed until then. Thus, the president is subject to prosecution — just like any other citizen.
It is also important to note that after Zelaya's ouster, the army didn't seize or retain power. The Honduran Congress, as specified by the constitution, promptly swore in the speaker of Congress as the new president. Consequently, power stayed in civilian hands. The army merely enforced a court ruling, as provided for in the constitution."
It is also important to note that after Zelaya's ouster, the army didn't seize or retain power. The Honduran Congress, as specified by the constitution, promptly swore in the speaker of Congress as the new president. Consequently, power stayed in civilian hands. The army merely enforced a court ruling, as provided for in the constitution."
Study: 1 in 3 Breast Cancer Patients Given Unnecessary Treatment - Cancer - FOXNews.com
Study: 1 in 3 Breast Cancer Patients Given Unnecessary Treatment - Cancer - FOXNews.com: "Overall, the study found that one-third of the women identified as having breast cancer didn't actually need to be treated.
Some cancers never cause symptoms or death, and can grow too slowly to ever affect patients. As it is impossible to distinguish between those and deadly cancers, any identified cancer is treated. But the treatments can have harmful side effects and be psychologically scarring."
Some cancers never cause symptoms or death, and can grow too slowly to ever affect patients. As it is impossible to distinguish between those and deadly cancers, any identified cancer is treated. But the treatments can have harmful side effects and be psychologically scarring."
Thursday, July 09, 2009
OpenSecrets | Congressional Lawmakers Invest in Their (Financial) Health - Capital Eye
OpenSecrets | Congressional Lawmakers Invest in Their (Financial) Health - Capital Eye: "As members of Congress assess the proper dose of reform for the nation's health care system, many of them have likewise invested hundreds of thousands of dollars of their personal funds into the very companies whose financial fortunes depend on what measures become law."
Tuesday, July 07, 2009
The Economics of Illusion - L. Albert Hahn - Mises Institute
The Economics of Illusion - L. Albert Hahn - Mises Institute: "For it presupposes an economy whose members do not see through the changes brought about by monetary or fiscal manipulation — or, as some might say, the swindle. Above all, it presupposes that people are blinded by the idea that the value of money is stable"
Studies Say $196 Billion Wasted on United Nations Health Programs - United Nations - FOXNews.com
Studies Say $196 Billion Wasted on United Nations Health Programs - United Nations - FOXNews.com: "In one paper, WHO researchers examined the impact of various global health initiatives during the last 20 years.
They found some benefits, like increased diagnosis of tuberculosis cases and higher vaccination rates. But they also concluded some U.N. programs hurt health care in Africa by disrupting basic services and leading some countries to slash their health spending."
It shouldn't be surprising that a large bureaucracy is very ineffective.
They found some benefits, like increased diagnosis of tuberculosis cases and higher vaccination rates. But they also concluded some U.N. programs hurt health care in Africa by disrupting basic services and leading some countries to slash their health spending."
It shouldn't be surprising that a large bureaucracy is very ineffective.
Obama: Status Quo Will Be Much More Costly Than Price of Overhaul Bill - Political News - FOXNews.com
Obama: Status Quo Will Be Much More Costly Than Price of Overhaul Bill - Political News - FOXNews.com: "President Obama says he recognizes the heavy price tag of revamping the health care system but that it would be much more costly to do nothing."
Then he should be able to prove that.
Then he should be able to prove that.
Planned Economy or Planned Destruction?
Campaign For Liberty — Planned Economy or Planned Destruction?: "How anyone could believe all the lies about capitalism and business and then believe that an omnipotent government knows all the answers, has no corruption, and will 'protect' us is beyond me. I am much more afraid of a tyrannical government than any private business. Virtually ALL evil throughout the history of the world was purported by governments, not the free market. Nazi Germany, Stalin, Mao, Castro et cetera were all oligarchies - not bastions of laissez-faire capitalism.
The ONLY way a business can harm the people is with government privilege that FORCES the people to use their product or service through some government act, legislation, or coercion. Otherwise, market forces come into effect and bad, evil, inefficient business would go away because people, voting with THEIR money, will in effect vote them out of existence by not patronizing that particular business."
The ONLY way a business can harm the people is with government privilege that FORCES the people to use their product or service through some government act, legislation, or coercion. Otherwise, market forces come into effect and bad, evil, inefficient business would go away because people, voting with THEIR money, will in effect vote them out of existence by not patronizing that particular business."
How Much Money Inflation? - Howard S. Katz - Mises Institute
How Much Money Inflation? - Howard S. Katz - Mises Institute: "In pursuit of the answer to how the monetary base got to be bigger than the money supply itself, I called the St. Louis Federal Reserve, and they were good enough to send me the following reply:
Half of all transaction deposits do not appear in M1 [the money supply] due to retail deposit sweeping. Adding these back into M1 causes M1 to be larger than the monetary base. (In retail deposit sweeping, banks reclassify checkable deposits as savings deposits so as to reduce statutory reserve requirements. Within certain legal bounds, such behavior is acceptable to the Fed. Bank customers are unaware that such reclassification is occurring.)
Plus the FOMC has increased the Fed balance sheet to levels never before seen. Banks are holding deposits at the Fed and not making a great deal of new loans (they are making some, but it is a recession after all). If the banks made new loans, that would generate more deposits to be included in M1.
Transactions deposits are simply demand deposits plus other checkable deposits. That is, they are total bank deposits and, as such, are an important part of the money supply."
Half of all transaction deposits do not appear in M1 [the money supply] due to retail deposit sweeping. Adding these back into M1 causes M1 to be larger than the monetary base. (In retail deposit sweeping, banks reclassify checkable deposits as savings deposits so as to reduce statutory reserve requirements. Within certain legal bounds, such behavior is acceptable to the Fed. Bank customers are unaware that such reclassification is occurring.)
Plus the FOMC has increased the Fed balance sheet to levels never before seen. Banks are holding deposits at the Fed and not making a great deal of new loans (they are making some, but it is a recession after all). If the banks made new loans, that would generate more deposits to be included in M1.
Transactions deposits are simply demand deposits plus other checkable deposits. That is, they are total bank deposits and, as such, are an important part of the money supply."
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