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Ed Rector
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Check out just who are the organizers/members of the 'Friends of Science' in Calgary. They are mostly from the petroleum industry.
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So how does an owner know, in advance, who the 'right people' are?? If all owners know this (it is hardly a secret) then about 60% of them (those that don't make the playoffs) will soon discover the people they hired were not 'the right people' after all.
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The USA has its own currency. There is no danger whatsoever of 'long term (in}solvency'. Judge Posner should know better. Actually, he probably does know better; but those U. Chicago economists he has lunch with have gotten into his head.
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Take a look in the Pacific -- especially Leyte Island.
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So who/what is "fit enough" to exercise monetary policy if not an independent central bank? The Congress?
In other words, the more the banks (in the aggregate) lend the stronger the credit of the borrowers becomes. Not sure this is a new revelation.
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How quickly they forget. Centre College was once (in the 1920's, I think) a football powerhouse, several times ranked in the top 10. They even beat #1-ranked Harvard once. A game many say was the greatest upset of all time. But it really wasn't as Centre was ranked #8 at the time.
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Abe Lincoln wanted to meddle in the employment and living conditions of some of the residents of the southern states. Did that make him a "liberal busybody"?
Toggle Commented Jul 11, 2013 on "A Lesson for the Busybodies" at Newmark's Door
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Dr. Rowe, The very first lines of your original post say: "I buy a house. Not because I want to live in it, or rent it out; the house will sit empty while I own it . . . . .The person I sell it to doesn't plan to live in it or rent it out either. She buys it for exactly the same reason I bought it. And she plans to sell to another person who buys it for exactly the same reason. And so on." I pointed out that a string of such transactions is a zero-sum game, because there is no net increase in utility of the houses or of the money involved. Then you do a 180 with your opening hypothesis and say: "Suppose I want to move to where you live, and you want to move to where I live. So we swap houses. We both gain." -- and conclude it now is not a zero-sum game. Your conclusion is different because you changed your principal hypothesis.
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These posts could only have been written by academics with too much time on their hands. People exchange existing assets (houses, stocks of money) all the time. At the end of the day those houses and those stocks of money are the same, it is just that different people now hold them. It is a zero sum game. What those actors may have expected (or hoped for) going in to such transactions is not relevant to anyone else. BTW: I suggest the role of money here is not as a medium of exchange, it is as a store of value.
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Once 'uncertainty' becomes certain the investment opportunities are long gone.
Toggle Commented May 30, 2013 on Fed Watch: More Uncertainty? at Economist's View
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Not sure why you think PK was off base in 2003. The economy was near full employment and we were ramping up TWO wars. To say nothing of the early stages of the residential real estate boom. The large Bush tax cut at that time seems pretty irresponsible to me. Perhaps his bond vigilante scenerio did not come to pass because of Greenspan's accommodating Fed. But we have since come to see an even more accommodating Fed go to extremes to keep some expansion going in an underperforming economy.
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Wow!! Some intelligent analysis from an Austrian economist.
How does one know what the correct rule is?? Remember Milton Friedman's rule of an unchanging 4% annual growth in the money supply would render Fed discretion superflous and give us constant economic growth with little inflation? Who would advocate such a rule today?
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So what did end the Great Depression? Or maybe it is still going on.
Robert Samuelson is no economist. Why does anyone give him the time of day on economic matters?
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What do you expect to read from the chief economist of Prosperity Capital Company??
Toggle Commented Nov 6, 2012 on Which market failure? at Stumbling and Mumbling
Of course money is a store of value. When the return on money exceeds the return on real investment we go into recession/deflation. When people (agents??) sense this will happen they will hold on to (not spend) their money.
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And what new technology do you see on the horizon that will create 78,000 new jobs in the near future??
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Oct 28, 2011