Category: economics

economics

A politician speaks the truth!

Usually, any statement or report emanating from government, any government white paper, is a lie, but in a remarkable fluke outburst of truthfulness,  the U.S. House of  Representative Committee on Oversight and Government Reform  has issued a report: The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008 The long and the short of the report being that the government pressured financiers to issue easy …

economics

I predict: 1. Seemingly good economic news

I predict that around 2009 October or so, there will be lots of seemingly cheerful economic news. Quite possibly sooner, possibly some time in August. I predict that the Keynesian element of the depression will rapidly and visibly diminishing towards the end of the year.  Crises that are well described by Keynes (aggregate demand falling below aggregate supply) never last long, except to the extent government intervenes to forbid businessmen …

economics

Speaking power to truth

If  an economist wants to get places, he had best tell politicians and bureaucrats what they want to hear.  The danger is that if says it often enough, he will himself come to believe it. Larry Summers is an economist.  When Bush was in power, he believed in Bushonomics, which got him into trouble in an academic environment of rigid, mindless, and unthinking left wing orthodoxy.  Now, however, it seems …

economics

The “stimulus” is far too large and far too small.

Republicans are getting traction by condemning the “stimulus”, as an outlandishly extravagant porkfest, as miserly and inadequate, and as a disaster that should not be repeated – an attack made all the more effective by the many radical Democrats who complain the porkfest was inadequate, and call for a bigger and better porkfest: “Stimulus II” Obama’s approval ratings, though still high, are plummeting fast under this withering criticism. In Japan, …

economics

Constitutionality of the removal of the Presidente of Honduras

Because the president of Honduras proposed to change the constitution to allow him further terms of office, he was accused of violating article 239 of the Honduran Constitution: No citizen who has already served as head of the Executive Branch can be President or Vice-President. Whoever violates this law or proposes its reform, as well as those that support such violation directly or indirectly, will immediately cease in their functions …

economics

The universal government white paper:

In short, the white paper tells us: Politicians are of course entirely lily white and innocent, except that the other party allowed bad people in the private sector to do bad things. Some regulatory agencies failed to do enough. Solving the problem requires more power to the government. Those regulatory agencies that failed the worst, will get the largest increase in money and power.