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Frederick Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009). To the Financial Times, October 7, 2010: Dear Sirs, It is…

From From Jeremy Grantham's latest quarterly letter: If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage inflation.  Better…

I was on BBC Radio Five Live at about 4AM local time this morning for a good 5 to 10 minutes, talking about the coalition government's austerity budget. My basic message was that austerity-lite might be defensible but full austerity is…

by Edward Hugh For reasons which aren’t worth going into now, I’m reading through a recent report by Deutsche Bank Global Markets Research entitled “From The Golden To The Grey Age” this afternoon. The report (all 100 pages of it, many…

...And the Coming Capital Controls A cross-post from this past Monday by Michael Hudson, President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of…

Note the reserve amounts in this post have been amended to reflect the $200 billion increase instead of the $20 billion originally cited. There are four developments in China to note today. First, China reported that its reserves jumped…

Asha Bangalore of Northern Trust writes: Recent data indicate bank credit has increased in July and August (chart 2A), while partial September data suggest another monthly gain.  This is a positive and noteworthy development, but…

Irving Fisher was a leading economist in the early 20th century. After being caught out during the Great Depression (he famously quipped, "Stock prices have reached what looks like a permanently high plateau." right before the…

Here we go again: the dollar appears to be under sustained attack in the foreign exchange market. To judge from its latest FOMC statement, the Federal Reserve appears to be actively encouraging inflation: “The Committee will continue to…

See video below for a discussion of this theme (hat tip Barry Ritholtz). This is a very good video for learning about how debt deflationary spirals are created by the "fallacy of composition" and how it applies to countries in a…