Thursday, May 27, 2010

Thursday round up.

In today’s Wall Street Journal, the excellent Judy Shelton says unsound money is the root of our economic problems (reprinted at the Sound Money Project blog).

What government policy makers in the U.S. and Europe fail to realize is that far from being seen as capable of delivering economic salvation, they are increasingly perceived as primary contributors to global financial ruin. Whether it's the fiscal recklessness of spendthrift politicians or the refusal of government officials to acknowledge failings—distorting mortgage markets through Fannie Mae and Freddie Mac, skewing assessments of credit risk through loose monetary policy—the influence of government over the real economy is proving disastrous.

No wonder people are flocking to gold as they flee government-supplied money. Neither the dollar nor the euro inspires much global confidence; despite the dollar's relative safe-haven status, neither currency holds out the promise of financial stability.

How can the real economy, i.e., the private sector, where genuine wealth is actually produced, continue to function in the absence of reliable money? Europeans will be wary of the euro from now on, given that the European Central Bank has relaxed its standards for safeguarding monetary integrity by absorbing Greek debt. Meanwhile, the perilous fiscal condition of the U.S. has convinced many that our government will resort to future inflation to reduce its own untenable debt burden.

On Fox News, Bruce Bartlett blames supply-side economics for not cutting spending while cutting taxes.

Following up on yesterday’s Malpass item,
here’s the complete text.

Economist Scott Sumner recently examined nations that made market reforms in the last 30 years, responding to New York Times columnist Paul Krugman.

Historian and author Brian Domitrovic defends Sumner and rebuts Krugman.

From Azerbaijan, Robert Mundell calls for a single European debt market and says the dollar’s rise against the euro will help Europe’s recovery.

Wayne Jett
was interviewed recenty about the euro.

On Monday, John Tamny
discussed his view that a U.S. debt default would be positive on the John Batchelor radio show (around the 20 minute mark).

Earlier this month, the National Inflation Association
produced a 55-minute documentary on the dollar.

1 comment:

  1. Do you think that Bartlett's new tune might be a kind of "I double dare ya" move? Does Bartlett really think that txes are the way to go, or does he say that to put the fear of taxes before the supply-siders so that they will indeed be more concerned about spending for other reasons perhaps?