Archive - May 17, 2015 - Story

"Coins and bills are obsolete and only reduce the influence of central banks," German economist and sole Keynesian member of the German Council Of Economic Experts Peter Bofinger tells Spiegel, becoming the latest central planning proponent to suggest that a cashless society would solve the world's economic problems by allowing the government to control who spends what and when in a futile effort to control the business cycle.

Many factors combined to make it the perfect storm: the demographic rise of the millennials, easy money from the Fed, the “Chivas Regal” effect in pricing strategy that many colleges and universities adopted, and the US government virtually taking over the market for student loans. It’s a vicious circle as colleges raise prices, students take out easy loans, and the institutions raise prices again. However, it all seems to be coming to a head as several factors begin to show the chinks in the armor.

Threats to free speech can come from lots of places. But right now, the greatest threat by far in the West to ideals of free expression is coming not from radical Muslims, but from the very Western governments claiming to fight them. The increasingly unhinged, Cheney-sounding governments of the U.K., Australia, France, New Zealand and Canada - joining the U.S. - have a seemingly insatiable desire to curb freedoms in the name of protecting them...

It is unlikely that we would ever be called upon to give a speech to graduating students. But if we were, we would say the following: Congratulations, Class of 2015: You chumps! 

The Wall Street Journal reports that you are the most indebted generation in history. The average graduate with student debt has a little more than $35,000 of it. The whole bill for student debt this year is expected to reach $68 billion – a tenfold increase over the last 20 years.  But student debt is like the foul smell of gangrene: It testifies to a deeper, inner corruption...

"Loans take time to season and go bad, and Wall Street loves to package and pass along risk. The music will stop — it always does — and this will not end well.”

When it comes to spectacularly bad foreign policy outcomes, the US is on an incredible run lately even by its own lofty standards. In the latest example of US meddling gone horribly wrong, Mohammed Morsi — the former Egyptian President who was “democratically” elected following mass protests against Hosni Mubarak — was sentenced to death on Saturday.

If that's "success", we would hate to see what Keynesian failure looks like.