Author Archive

Central Bank Revolution I: Market Monetarism Misdiagnosis (M3)

To begin to understand how central banks intend to reignite economic growth we have to understand that central bankers believe that changes in the quantity of money affect the price level, and for a short time, the level of economic activity, ie output.

 

By examining a classic monetary equation which became the foundation of Milton Friedman’s monetarism and central bank monetary policy we can see why there is potential for much more money printing.

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The Central Bank Revolution I (Well ‘Nominally’ So)

 

 

“The Checklist Manifesto – How to get things right”, is a masterful book for its narrative and practical application. Written by Atul Gawande, an acclaimed surgeon based in the US, he takes us on a journey of how the simple checklist helps individuals deal with immensely complex situations, where risks can be calculated and often lives protected – skyscraper construction, medicine and investment banking.

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Australia: Running Out of Luck (Unless you own gold?)

September 06th, by

In 1964 the Australian Donald Horne, social critic, wrote a book titled ‘The Lucky Country’ a statement of irony about his beloved home – Australia. He felt that where other countries had earned their prosperity through ingenuity and productivity advancements, Australia’s was largely derived from its abundance of rich natural resources and was run by a second-rate people who were lucky to have a society derived from the British. However, with time Australians have taken on the more optimistic interpretation that their luck has been earned.

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Eyes Wide Shut II – An End Solution

In the second part of the Eyes Wide Shut series we examine how the UK’s economic freedom has come down to a circular relationship between the BoE, the banks, bondholders and householders. Each component threatens to undermine the other leading to a loss of faith in the UK as a currency issuer. Most likely in the aftermath of such event there will be a dialogue on how to reset the system. If the diagnosis of the malaise is not accurately explained the risk of resuming the current monetary system will be high. So we offer the explanation and we offer solutions of our own and those of the Cobden Centre, whilst not exhaustive or detailed, they are an outline for real dialogue.

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Revolting PIIGs, A Golden Hope?

Almost a year to the day on June 27th, 2011 I wrote a blog for the popular alternative news broadcaster King World News. It was titled ‘Revolting PIIGs’. I made no apologies for my lack of sensibilities in a follow-up broadcast and still do not now. PIIGS is the appropriate acronym not GIIPS, as so many commentators now use having acquiesced to political correctness. If someone calls me ‘chubby’ I tend to do something about it. Get called a PIIG enough times you might hope EU member countries might do something about it. But that’s the problem try as they might to solve the problem they can’t because policymakers either do not want to understand the problem or actually just don’t understand the problem in the first place.

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