The Graduate

Lagarde Urges Wealth Redistribution To Fight Populism

"I want to be loud and clear: populism scares me... policy makers need to 'man-up' and pay for the social cohesion that we need to keep our societies advancing... it probably means more redistribution than we have in place at the moment and accept that this may be a higher tax burden on people..."

Frontrunning: September 2

  • Donald Trump Revised Immigration Speech After Mexican Leader’s Tweet (WSJ)
  • Hillary Clinton Raised $143 Million in August for Democrats and Her Campaign (NYT)
  • Putin says he doesn't know who hacked U.S. Democratic Party (Reuters)
  • Samsung issues recall for Galaxy Note 7 after battery fires (Reuters)
  • Putin Joins "OPEC Headline" Fray, Pushes For Oil Production Freeze, Iran Exemption (ZH)

A Post Western World? A Disturbing Interview With Prof. Harry Redner - Part 1

The political and economic issues broadly discussed in the media usually revolve around political cycles, terrorism, foreign policy, rising debt levels, sluggish economic performance, academic underachievement, environmental problems, ageing demographics and so forth.  In our view, this all ties into a major cycle of history that has been with us for some time, and which has been gaining traction since the 1990s: the end of "Western Civilization" and the transition towards a globalized society.

Goldman Hires Former EU President As Advisor

Having cornered the central banker market, with its alumni manning key positions at most central banks, Goldman has decided to tip its cards into its next zone of interest: geopolitics, and has done so by hiring none other than the former head of the European Commission, Jean-Claude Juncker's predecessor and one-time Nigel Farage nemesis, Jose Manuel Barroso as an advisor and non-executive chairman of its international business. 

Voices Of Reason In An Unreasonable World - Meet The Free-Market Economist That Stood Up To Hitler

"The loss of traditional human connections, the dehumanization of man in mass society, and the corruption of the political and economic marketplaces, Röpke argued, had created the sociological and psychological conditions for the emergence of and receptivity to the collectivist idea and its promise of a new community of a better society designed according to a central plan." In the dark days immediately following the rise to power of Adolf Hitler and his Nazi movement in Germany in January 1933, Willhelm Röpke refused to remain silent. He proceeded to deliver a public address in which warned his audience that Germany was in the grip of a "revolt against reason, freedom and humanity."

"The Bucks Stop Here": Why Keynesian Economics Will Get Blamed For The Crash

For as long as the present economic system lumbers along, Keynesians will control the levers of power and influence. But when at last the system goes down in a heap, and central banks cannot restore the system, there will be a quest for answers. When you live by the Federal Reserve, you die by the Federal Reserve.

The Changing World Of Work 4: The "Signal" Value Of Credentials Is Eroding

Conformity and being able to navigate stifling bureaucracies no longer creates value or helps employers solve real-world problems. This is why college graduates can send out hundreds of resumes and not even receive a single reply, much less an interview or job offer. An entire new feedback loop of accreditation is needed...

Breaking Bad (Debt) - Episode 3

The 2008 worldwide financial crisis was produced due to excessively easy monetary policy, which caused the largest debt driven mal-investment in housing, automobiles, and Chinese produced crap in world history. The consequences of this debt bacchanalia should have been the orderly liquidation of the Wall Street entities that created the crisis, the writing off of trillions in bad debt, corporate and personal bankruptcies of businesses and people who borrowed recklessly, a sharp steep economic decline to cleanse the excesses, and politicians who immediately began the process of reducing budgets and addressing long term unfunded unpayable liability promises. Instead, the psychotic oligarchs did not want to lose any of their power, wealth or control over the proletariat. They have done the exact opposite of what needed to be done.

"Fear" Is The Ever-Present Backdrop In 'Real' America

Setting aside monsters under the bed, the Ebola virus and fanatical terrorists bent on our destruction--what are we so afraid of? It must be something, because fear is the ever-present backdrop in America.

Currency Reform In Ancient Rome

The global economic downturn of 2008, in particular its monetary facet, readily invites comparison between the troubles of the modern world and those of the Roman Empire; just as Western currencies have declined precipitously in value since their commodity backing was removed in stages starting roughly a century ago, Roman currencies were also troubled, and present a cautionary tale. The Roman coin in use through most of the empire was the denarius, which demonstrated a persistent decline in value, starting from the time of transition from Republic to Empire, and continuing until its decimation during the Crisis of the Third Century AD. Although efforts by Diocletian taken after the monetary collapse are commonly associated with Roman economic reform, there were other efforts by earlier, lesser known emperors that suddenly and unexpectedly improved the silver content and value of the denarius. Firsthand accounts and archeological findings provide sufficient detail to allow examination of these short, if noteworthy, periods of voluntary restorative policies – and their architects.

Which Are The Best Business Schools For The Buck (Spoiler Alert: Not Harvard Or Wharton)

As the San Fran Fed recently explained, when it looked at the upside of a college education, it found that the average college graduate earns over "$800,000 more than the average high school graduate by retirement age." What was ignored is the offsetting cost to this upside in terms of hundreds of thousands of college loans bearing compounding interest that are just as sticky and in increasingly more cases also remain with the graduate until retirement. But what about business schools? For those professionals who have already picked a career in finance or business, and who are willing to spending even more ridiculous amounts of money for a piece of paper and a rolodex, which business schools offer the best bank for the buck?

Krugman, Who Is Paid $25,000/Month To Study Inequality, Says "Nobody Wants Us To Become Cuba"

Krugman: "There's zero evidence that the kind of extreme inequality that we have is good for economic growth. In fact, there's a lot of evidence that it is actually bad for economic growth. Nobody wants us to become Cuba." Ah yes, inequality, the same inequality that the Fed - Krugman's favorite monetary stimulus machine - has been creating at an unprecedented pace since it launched QE. Just recall: "The "Massive Gift" That Keeps On Giving: How QE Boosted Inequality To Levels Surpassing The Great Depression." So while Krugman is right in lamenting the record surge in class divide between the 1% haves and the 99% have nots, you certainly won't find him touching with a ten foot pole the root cause of America's current surge in inequality. And, tangentially, another thing you won't find him touching, is yesterday's revelation by Gawker that the Nobel laureate is the proud recipient of $25,000 per month from CUNY to... study inequality.