Prior to a recent speech to a small group of individual investors, my host asked them to submit some questions to me in advance. Here are the questions submitted with some brief answers. Is it possible for the sitting president who is up for reelection to manipulate economic figures in order to create a falsely [...]
I find bizarre reports that Federal Reserve policymakers are considering sterilizing a new round of bond purchases in order to “subdue worries” about potential inflation. Here’s how the WSJ put it in the first two paragraphs of its story on March 8: “Federal Reserve officials are considering a new type of bond buying program designed [...]
The Fed announced yesterday that it turned over $76.9 billion of its earnings to the Treasury (and the taxpayer) during 2011. This was near the record $79.3 billion transferred during 2010. It is about three times the amount transferred during more normal times. For example, the transfers averaged $21.5 billion from 2002 through 2005. While [...]
Chubby Checker, a diminutive Fats Domino, sort of, came out with “The Twist” in the summer of 1960, just as I was starting college. It was in the nick of time for me, since I didn’t, or couldn’t, dance. In my tiny high school in rural North Georgia, dancing was not considered manly for boys. [...]
For those of us seeking relief from the hot air in Washington and the rest of the country, it comes in a little noticed bounce in the money supply statistics. The Fed’s latest estimates for M2, in its H.6 release on July 21, shows the growth rate for the past 3 months at 8.2 percent; [...]
What happened in 08 Was yesterday’s news. What’s happening now Is the delta blues. I’m mystified by the emphasis some pundits are placing on totals while ignoring recent changes in those totals—the deltas. Even though most of the growth in the Fed’s balance sheet is almost two years old, some say its size is [...]
As I pointed out in my last post on inflation, the expansion of the Fed’s balance sheet assets has been largely offset on the liability side of its balance sheet by excess reserves held by banks. Those reserves are assets to the banks and liabilities to the Fed. They are “excess” reserves because they exceed the [...]
It’s taken for granted in some circles that a sharp acceleration of inflation is the inevitable result of the monetary and fiscal policies of the past year or so. I disagree for the following reasons. *While budget deficits have grown dramatically, in absolute terms and as a percentage of GDP, for the most part they [...]
Last week I argued that the “considerable period” language in the FOMC’s post-meeting announcements is not a good idea. It robs the FOMC of flexibility it might need, and it gives the markets too much near term certainty. That does not mean that I think the FOMC should tighten monetary policy immediately. Monetary policy is [...]
In “Hard Money Populism” I mentioned Congressman Ron Paul’s coming to Texas A&M University a few years ago to speak to the Young Republican Club and that the attendance was embarrassingly small. I said that he was a good sport about it and nevertheless gave them “the whole load.” I don’t know how many readers [...]