KWN Interview – Dr. Paul Craig Roberts

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Russia’s Response to Washington’s Aggression?

Courtesy of King World News

Dr. Paul Craig Roberts – Former US Treasury Official, Co-Founder of Reaganomics, Economist & Acclaimed Author – Dr. Paul Craig Roberts is an American economist, a columnist and recent author of“The Failure Of Laissez Faire Capitalism”. He served as an Assistant Secretary of the Treasury in the Reagan Administration earning fame as a co-founder of Reaganomics. He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. Dr. Roberts has testified before congressional committees on 30 occasions on issues of economic policy. He has also written extensively that during the 21st century the Bush and Obama administrations have destroyed the US Constitution’s protections of Americans’ civil liberties and has been a critic of both Democratic and Republican administrations.

The Keynesian PhD Brigade Strikes Again: Sweden’s Riksbank Joins The ZIRP Mania

Folks, it’s a tyranny of the PhDs. Recently, the central bank of Sweden was subject to a withering tirade by that oracle of Keynesian rubbish, professor Paul Krugman, who accused it of “sado-monetarism” for leaving the Swedish economy exposed to the mythical economic disease of “deflation”.

So the Riksbank threw caution to the wind, and a few months ago joined the global central bank plunge into ZIRP and promised to ladle out free money until at least 2016. To leave no doubt, it is currently cranking up for direct lending, “asset purchases”, negative interest rates (N-ZIRP) and the rest of the recently invented central bankers voodoo kit. Anything to achieve its sacred 2% inflation target!

So still another central bank has been infected by the 2% inflation shibboleth—-a folly the greatest central banker of our era dispatched recently with a single sentence:

Mr. Volcker,who believes the Fed’s main goal is to defend the dollar’s stability, said he doesn’t even understand why the Fed adopted a 2% target for inflation. He asked, “Do we want prices to double every generation?”

Continue reading

The EU’s New “Red Tape Advisor”

Submitted by Pater Tenebrarum  –  The Acting Man Blog

Creator of Stammered Works Becomes EU’s Red Tape Whacker

The European Commission seems to be serious about wanting to cut some of the mountain of red tape it has imposed over the years. Only a truly giant weed-whacker can be expected to do the job. In our paperless age, it would probably be best if someone just walked past their servers with a very big magnet.

Anyway, Reuters informs us that JC Juncker has found the right man for the job: former Bavarian premier Edmund Stoiber. We have previously remarked that jobs in the EU are sinecures for political has-beens, and one might at first suspect that to be the case here as well. However, Stoiber actually does appear to be qualified for the task – at the very least, he seems well prepared for it and comes equipped with the proper mindset.

“European Commission President Jean-Claude Juncker appointed Germany’s Edmund Stoiber as special adviser on better regulation on Thursday, to help the EU executive fight over-regulation and red tape.

Stoiber, a former premier of the German state of Bavaria who sought to become German chancellor in 2002, has for the past seven years chaired a group advising the Commission on administrative burdens and on how to make EU law simpler and cheaper.

In October, he proposed exempting small- and medium-sized firms from a wide range of business rules with a “bonfire of red tape” aimed at reversing a public perception of Brussels as a “bureaucratic monster”.

“EU citizens need the EU to focus on where it can make a real difference to their lives, not to interfere in every detail. EU businesses need the space to innovate and grow, not get tied up in red tape,” Juncker said in a statement

Stoiber will work closely with Juncker’s deputy, First Vice-President Frans Timmermans, who is also charged with improving regulation.

Continue reading

Credit Doesn’t Care At All What the FOMC Says

Submitted by Jeffrey Snider  –  Alhambra Investment Partners

The stock market takes off in holiday celebration of the FOMC being even less clear than it really has been in some time; perhaps going all the way back to Alan Greenspan’s intentional mush. Equity “investors” are happy that the Fed may be happy about the economy, even though there is nothing in actual markets (outside of stocks) to suggest that anything the Fed proclaims carries even the slightest validity. Growth and inflation are going to be good, so the philosopher kings in DC say for the sixth year in a row, this time enough to end ZIRP (after almost seven years) and get to tightening.

Axiomatically, ambiguity is not certainty but the degree to which ambiguous language is taken as a comfortable conviction shows exactly the game being played here. Stock investors expected this exact vagueness and since the received abstruseness was as expected it was certainly reassuring to bid equity prices. This is how far rational expectations theory has devolved.

It is very curious, then, to see vastly larger markets unperturbed by anything that occurred at the FOMC this week. Sure, nominal yields rose in the treasury market a bit, though only slightly after an immense buying spree. Overall there was a distinct lack of distinction, and thus positive conviction, in credit and funding. The eurodollar market is only slightly tighter in the shorter tenors to where it was before the FOMC’s “radical” and “revolutionary” semantical modification.

ABOOK Dec 2014 Considerable Period Eurodollars

Continue reading

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Two Nations: 27% Of British Children Grow Up In Poverty (Independent)
Manufacturers Face ‘Bloodbath’ In Russia (BBC)
China Offers Enhanced Cooperation as Russia Struggles (Bloomberg)
Dollar Resumes Climb as Yellen Signals 2015 Interest-Rate Rise (Bloomberg)
UK Unions Call For North Sea Tax Breaks As Oil Slump Threatens Jobs (Guardian)
It’s Not Easy Being Green: Fossil Fuel Subsidies Half A Trillion Dollars (CNBC)
Bulgaria Ready To Issue South Stream Pipeline Permits (RT)
The Oil Train Glut Shows How Little The Keystone XL Pipeline Matters (Reuters)
2014: The Year We Piled Up Risks Like A Global Game Of Tetris (David Collum)
Wall Street Firms Endure Lost Decade After Goldman Peak in 2007 (Bloomberg)
Meredith Whitney’s Hedge Fund Said to Be in Turmoil (Bloomberg)
France Risks EU Split Over Russian Sanctions Relief (Bloomberg)
First Arrest In UK Foreign Exchange Market Rigging Investigation (Guardian)
Obama Authorizes ‘Economic Embargo’ On Russia’s Crimea (RT)
Antarctic Photo Science Archive Unlocked (BBC)
Wolves, Bears And Lynx ‘Now Plentiful In Europe’ (AFP)
Birds ‘Heard Tornadoes Coming’ And Fled One Day Ahead (BBC)
Dick Cheney Should Be In Prison, Not On ‘Meet The Press’: Greenwald (RT) Will Religion Ever Disappear? (BBC)

Continue Reading: Debt Rattle December 20 2014 – The Automatic Earth

Yanis Varoufakis

THOUGHTS FOR THE POST-2008 WORLD

WEB OF DEBT BLOG

ARTICLES IN THE NEWS . . . . . . . . . . . . . . . . COMMENTS, FEEDBACK, IDEAS

Euro Area Debt Crisis by Megan Greene

News and views on the euro area's debt crisis

Palanthir

I ljuset av verkligheten för medvetandets utveckling.

E-piphany

A Blog About Markets, Mania, and Miscellany

The Market Monetarist

Markets Matter, Money Matters...

New Economic Perspectives

Dedicated to modern money theory (MMT) and policies to promote financial stability and the attainment of full employment.

pragcap.com/

Just another WordPress.com site

Wolf Street

The stories behind business, finance, and money