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Old and Gray's blog
When first attracted to the possibility of cmmunicating with kindred souls on the Microsoft Network in Money Talk, being able to do so behind a buffer with a degree of protection for the sake of anonymity was the final enticement. That was 2008. The additional 8 years since have added some impediments to my ability to cope with even ordinary things on a daily basis. Apparently, that swing around ninety years of age is a critical battle not as easily dealt with as a younger person might think.
Problems of here and now: Revisiting earlier economic thought.
Prompted by a faulty memory and a large economics library at hand, O&G pulled down two volumes hoping to find an answer to a bothersome problem. The two volumes were two editions of the same work, that of Frank Knight, stalwart of the University of Chicago, labeled so because his students attained notable success (witness Milton Friedman, James M. Buchanan and George Stigler among a phalanx of others) and Chicago has become a magic name for what followed.
Awoke at about 4AM, and stared at rhe ceiling for over an hour before climbing out of bed and deciding some tasks needed attention.
Clean-up, consolidation means those piles of paper, bound with the handy plastic combs, too many pages lying loose among the bindings - in process, no decision whether to keep or toss. . . So, began by organizing them: subject matter, author, history, labor, monetary policy, central banks. . .
Until the recent Allan Meltzer, History of the Federal Reserve, from an historical perspective, the standard in-depth study of the March 1933 FDR administration, introduction of the New Deal and the slow recovery for the next four years, was the Freidman/Schwartz, A Monetary History of the United States 1867-1960.
Before the Dodd-Frank Act was signed into law, an enterprising reporter cornered Representative Barney Frank and asked a few questions about the contents of the Bill as passed. One of the questions was whether the Act brought all derivatives under regulation. The answer was short, "No, it didn't. It wasn’t meant to." Congressional records carry similar disclosures from both Frank and Dodd in respective recorded responses.
Duffminster Times was a month and two days old when O&G posted a theme with a question: "Is this a recession or something larger and not yet understood?"
Since February, 2008 we've been on a quest to explain the 2007 crisis and the failures that prolonged recovery. We gathered sufficient courage to begin concentrating in earnest in a thread on Microsoft's Money Talk forum initiated by Duffminster early February, 2009.
- By the seventh of the month, we listed our version of the four main problems the system faced, which Duff moved forward to occupy message #15 in the tsunami thread - beginning March, 2009..
The Fed is not yet finished polishing its image and exerting its influence on the shaky recovery from the 2007 crisis. O&G expressed an opinion of the reason why it seems so inept in dealing with the unraveling system which with yet another year about to be added to its efforts still appears to be without a sound policy.
“There is nothing new but that which is forgotten” Mlle Bertin.
Wandering through the 'net about a month ago brought me to a site whose name and address I hadn't the foresight to record. They evaluated active websites. It was only natural to look up Duffminster Times. Value placed on the site was $48 US! Divided three ways between the three persistent parties writing here makes us each worth $16. A pittance in times past.
Submitted by Old and Gray on Thu, 01/09/2014 - 11:16
This is a fitting spot for an entry which will close off this series on Central banks and Monetary Policy, carried over from the tsunami thread from June 6th, 2010, which offers an opinion of the section which empowers the Fed to perform its duties and - if interpretation is correct - describes the limits of the Fed's authority.
[Mitchell’s 1913 focus was on four nations during the period under study, Germany, Britain, France and the United States. It is extensive and will not be critiqued here to save time for his later work (1927 and 1946). Instead, a summary review focusing on the value of the work is called for. This is the simpler route due to Mitchell’s accommodating habit, that of an educator, of planting small summaries - serving as signposts - throughout the work, apparently to ease the load on the over-worked businessman an essential part of his intended audience. ]
The next significant milestone study along that timeline was delivered courtesy of a French Economist, Josef Clement Juglar (1819-1905) with two editions of his study: the first, 1860; the second, 1889.
Adam Smith set the limits of early economic study with his title, "The Wealth of Nations". It stimulated the interest of wealthy intellectuals who then proceeded to expand and refine Smith's basic provisions for the "new science". "Wealthy intellectuals" is advisable in view of the comfort of people like Richard Cantillon and David Ricardo, who acquired tens of millions then retired to a life of contemplation and intellectual endeavors. Their study was centered on Wealth, not fiscal policy, welfare of a nation, or the success or failure of menials.
Wesley Clair Mitchell’s first published tome on “Business Cycles” (1913) began with an apology in the Preface –
Resurrecting an Old Topic
During the second term of Nixon’s presidency, the kindest words to be said for the economic environment were, situations were unsettled. Prior to Nixon’s resignation, Spiro Agnew, his Vice President, was forced to resign for improprieties, when Nixon left the White House, the administration was what might be described as in the hands of an unknown, Gerald Ford. Washington was in a turmoil. Watergate and the scandal of the tapes still hung over the scene and what had become too much of a burden for Nixon remained too much of burden for business.
The big move in news this Tuesday, July 30, 2013 hinges on the lame duck administration of Ben Bernanke, and, in second place, JPMChase reaching a meaningless settlement with the FERC.
The stock market has hit another DJIA historic high at the close today, 3/6/13. It may be time for an analysis of why it should be so.
Lars E. O. Svensson, a board member of the Sveriges Riksbank, Sweden’s central bank, and a professor at Stockholm University, had a paper published in the Brookings Papers on Economic Activity Fall 2011 issue, Practical Monetary Policy: Examples from Sweden and the United States” . It compared monetary policy by the Riskbank and the US Federal Reserve
V_L's use of the carousel image in understanding our circular path through history and the suggestion of ever-increasing speed and Chaos generated is appropriate. We're not really covering new ground; it's the same cycle at a faster speed each pass and those in charge of the throttle hope that no one notices how dizzy we're getting.
Forbes, which we all recognize as a business friendly publication, comments on the nominaiton of Mary Jo White to the SEC today, opening with this headline -
The Forbes article can be found here -
Central bankers should be brought to heel by elected parliaments
Intellectual fashion is changing. Central bankers around the world no longer command the charisma of a high priesthood.
The European Commission has released a 400 paged report on the state of Unemployment in the EU. Ambrose Evans-Pritchard of the Telegraph has a relatively short review of the meat of the presentation. To date I’ve not investigated any reviews here in the US – and probably will not.
This entry has been updated as of January 8, 2013.
Without this evaluation, this blogsite would not be complete.
The Global Macro Economic Outlook
A Review of developments of two eventful days - January 3, 2013 and January 4, 2013.
Reuters published two articles today commenting on the sequence in the latest fiscal cliff negotiations.
Two Economic papers, perhaps independently of each other have been carrying a similar concept for a few years. Both economists are well known - one quoted here previously, the other, a bright young fellow (Judging by his writing style, he must still be in his seventies) from Northwestern University.
Their topic stated in a general way is the future of the US economic system.
In 2001, an European economist began a paper with a paragraph, notable and repeatable in view of today’s (2012) problems, which begins and ends in such a manner -
August 31, 2012, at the Jackson Hole symposium, hosted on an annual basis by the Federal Reserve Bank of Kansas City, Ben Bernanke, chair of the Fed, addressed the issue of Monetary Policy in the US since the Onset of the Crisis.
Paper discard day. . all the junk we believe may be of value that ends up cluttering the bottom of closets and storage areas.
When the Original Thomas Wolfe - of Asheville, NC origin - passed away, his editor foraged through Wolfe's digs and discovered writing squirreled away in closets and such to no end. When he finally gathered everything together to carry it back to his workplace, he realized he had millions of words if not pages.
[Copied here from the forum entry of 6-13-2012]
[This extended comment is offered on an April 9th speech by Bernanke and how JPMChase subsequently made a mockery of the Fed's claims for enhanced supervision then demonstrated lax enforcement.]