by Paul Heywood and Jonathan Rose, The Conversation
Corruption is an urgent global problem, one that cosats the developing world dearly and badly slows its development down. But until recently, figuring out just how big the problem is, and what to do about it, has been fiendishly difficult.
by Charles Hugh Smith, Of Two Minds
The more the Status Quo pursues the same old Keynesian Cargo Cult script of central planning and free money for financiers, the more self-liquidating the system becomes.
Judging by the mainstream media, the most pressing problems facing capitalism are:
- income inequality, the basis of Thomas Piketty's bestseller Capital in the Twenty-First Century, and
- the failure of laissez-faire markets to regulate their excesses, a common critique encapsulated by Paul Craig Roberts' recent book The Failure of Laissez Faire Capitalism.
September 7th, 2014
in Op Ed
by Dirk Ehnts, Econoblog101
Reuters reports from the Jackson Hole conference of late August, writing that the Bank of Japan’s governor Kuroda has proposed to set benchmarks for wage negotiations:
Low long-term interest rates will likely not rise until the 2 percent target is reached, he said, adding that the BoJ’s 2 percent inflation target, once met, could serve as a benchmark for wage negotiations.
by Peter St. Onge , mises.org
One of the great economic myths of our time is Japan's "lost decades." As Japan doubles-down on inflationary stimulus, it's worth reviewing the facts.
The truth is that the Japanese and US economies have performed in lock-step since 2000, and their performances have matched each other going as far back as 1980.
Either Japan's not in crisis, or the US has been in crisis for a good thirty-five years. You can't have it both ways.
by J.D. Alt, New Economic Perspectives
Why do so many people-including the authors of most economics textbooks-believe the U.S. banking system creates the U.S. dollars we earn and spend and pay our taxes with? It's because the U.S. banking system does, in fact, "issue" the great majority of the dollars we use-by making loans to businesses and citizens which are not backed by "real" dollars the banks have on deposit. What everyone overlooks, however (for reasons not entirely clear) is the fact that these new loan dollars are "made real" by the U.S. government's solemn promise to convert them at any time, on demand, into actual, "real", sovereign U.S. dollars. The U.S. government is able to make this promise because, by law, it can issue the necessary actual dollars by fiat (by simply "declaring" the dollars into existence.) A lot of people (again for reasons not entirely clear) don't like to hear that last part. But it's simply a fact of life: the cash dollar bills you get from an ATM machine are not printed up (created) by the banks-they are printed (or created electronically as needed) ONLY by the U.S. sovereign government.