Category Archives: News/ Lessons

Re: Currency wars might be starting again From the report: “European Central Bank President Mario Draghi called the euro’s strength a “serious concern” last week, and officials in Australia, Canada and New Zealand have been making noise about weakening their … Continue reading →

Re:  Philadelphia Fed President Plosser sees danger in excess reserves Philadelphia Fed President Charles Plosser correctly understands the danger posed by the $2.5 trillion of excess reserves created as a result of the Fed’s Zero Interest Rate Policy (ZIRP) and … Continue reading →

From today’s Open Europe news summary: In its staff report on Germany, the IMF recommends that the government boost investment spending by 0.5% of GDP per year, over the next few years, to help encourage private investment and boost growth … Continue reading →

Today every central bank on the planet is printing money by the bucket loads in an attempt to stimulate their economies to escape velocity and a sustainable recovery.  They are following Keynesian dogma that increasing aggregate demand will spur an … Continue reading →

Re: Once More, Economy Exhibits Weakness Dear Sirs: Perhaps “the economy turned in another disappointing quarterly performance” because it never has recovered.  Perhaps “the electorate remains skeptical that things are getting better” because they live in the real world and … Continue reading →

From today’s Open Europe news summary: Annual inflation in Germany picked up in April but by less than economists had expected, fanning concerns that inflation in the eurozone has fallen dangerously low and putting pressure on the European Central Bank … Continue reading →

In Florida Tomato Fields, a Penny Buys Progress Florida tomato field workers toil under harsh conditions for low pay.  It seemed that the tomato growers could dictate whatever labor terms they chose, yet such was not the case.  It took … Continue reading →

Re: US, Japan Fail to Clinch Trade Deal Dear Sirs: One of the great economic fallacies of our time is that free trade is beneficial to a country only if its trading partner also adopts free trade.  Thus we witness the … Continue reading →

From today’s Open Europe news summary: Welt: ECB “trick” to help Portugal return to the markets Die Welt reports that the ECB will use a “trick” to help Portugal to return to the markets, by once again adjusting its collateral … Continue reading →

From today’s Open Europe news summary: Meanwhile, French Prime Minister Manuel Valls yesterday unveiled his plan to cut public deficit by €50bn between 2015 and 2017. The new leader of the party, Jean-Christophe Cambadélis, said this morning, “We need to … Continue reading →