Economy

Our leaders in Washington are so detached from reality it begs the question, "What are they smoking?" I'm not talking about the insane amounts of spending that's going on in our capital, or even about the patently unpayable debts and promises they're making to all of us and our foreign creditors. Although I think these things, too, result from whatever drugs they're on inside the beltway I am referring the way Washington manipulates its official statistics. Words: 1107

Looking forward, our formula for working out of the current deficit pattern would be to have the Republicans regain control of one house of Congress (but not both houses of Congress plus the White House). The economy fully recovers. I’m not ready to forecast surpluses to come, but I can envision the deficits coming down to reasonable magnitudes. Words: 1438

Being afflicted with an Austrian outlook can turn many a would-be investor into a permabear. Indeed, if I were truly a hardcore advocate of Austrian investing, my only assets would be a shotgun and a bag of gold because, up until now, I have never come across any writing that attempted to weld Austrian thought onto an investment framework. Words: 953

"Complicit" is a rousing, fun look back at the credit crisis filtered through the mind of someone who labored in the center of it. Ending the story much the same way the boom ended for so many a greedy, blinkered little pig — by giving you the middle finger abruptly and without a hint of premonition — only highlights the talent that makes "Complicit" such an enjoyable read. It is a tour of almost-impossible-to-believe tales of greed, stupidity, and woe across eleven short, engaging chapters. Words: 1446

There is a definite connection between fiat currencies and trade deficits. Critics of the Federal Reserve are right to blame it for distorting trade flows and setting the U.S. economy up for an inflationary crash. However, a trade deficit per se is not a sign of a bad economy. Indeed the trade deficit might blossom if the U.S. ever returned to the gold standard, though it would be due to a productive net inflow of producer goods. Words: 1667

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax and a carbon or other energy-related tax may become necessary says White House adviser Paul Volcker. Words: 758

Oh the shame of being a baby boomer. What a bunch of shysters we seem to be. We are the most selfish, greedy, job- hogging, pension-grabbing bunch of egomaniacs history has ever seen. Here we are, cackling to ourselves in our overpriced homes and exploiting our political power to shaft the younger generation. We use our demographic throw-weight to skew the welfare system in our favour and above all we are squandering the natural resources of the planet. You know that Goya picture of the giant eating a naked human being? That's us, all right – Saturn devouring his children. Or at least, that is the portrait presented by David Willetts in his new book, "The Pinch-How Baby-Boomers Took Their Children's Future and Why They Should Give it Back". Words: 759

There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142

With the immediacy of today’s NASDAQ close and the timeless power of a Greek tragedy, The Quants is at once a masterpiece of explanatory journalism, a gripping tale of ambition and hubris…and an ominous warning about Wall Street’s future. Words: 624

Niall Ferguson's book,The Ascent of Money, is an excellent, just-in-time guide to the history of finance and financial crisis in which he shows how promises and paper have lifted humans from subsistence farmers in Babylon to Masters of the Universe on Wall Street. Words: 975