Sound Banking
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What Krugman Got Wrong About Brazil and Crypto
Brazil’s government-owned retail system is convenient. But that’s the least of what Bitcoin offers.
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Is the GENIUS Act Creating a Shadow CBDC System?
Allegedly designed to regulate stablecoins, the bill quietly allows for a de facto retail CBDC system — one implemented not by the Federal Reserve, but by the commercial banks it closely supervises.
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Did Inflation Really Elect Trump? The Case for a Deeper Economic Frustration
Under the last administration, real wage growth was lower and inflation higher. The disaffected American worker saw Trump as a potential solution.
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Central Bankers, Let the Price System Work!
“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter
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Who Bears the Burden of Dollars’ Falling Purchasing Power?
“Inflation is not a one-trick pony, with an easily predictable outcome. Rather, it does several things at the same time. Looking at claims like the eradication of a dollar’s purchasing power is misleading: it is not the case that inflation has ripped off savers by eradicating 97% of their savings’ worth.” ~ Joakim Book
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Free Down Payments and Subsidized Mortgages are Not Social Justice
“Despite 50 years of debacles, politicians are still glorified for pretending that free downpayments and subsidized mortgages are “magic beans” that multiply social justice in America.” ~ James Bovard
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When Did the Bank of England Become a Lender of Last Resort?
It happened sometime after the crisis of 1847.
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Safe Banks Are Probably Not What You Want
Why wouldn’t we want safe and stable banks? Like almost everything else in economics, benefits in one area comes with real costs in others.
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How Do Bankers Create Value?
Successful banks move resources from lower-value to higher-value uses while unsuccessful banks move resources from higher-value to lower-value uses.
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Competitive Full-Reserve Banking
Historically, fractional-reserve banks have always won out against their full-reserve cousins. But times have changed.
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•
What Krugman Got Wrong About Brazil and Crypto
Brazil’s government-owned retail system is convenient. But that’s the least of what Bitcoin offers.
-
•
Is the GENIUS Act Creating a Shadow CBDC System?
Allegedly designed to regulate stablecoins, the bill quietly allows for a de facto retail CBDC system — one implemented not by the Federal Reserve, but by the commercial banks it closely supervises.
-
•
Did Inflation Really Elect Trump? The Case for a Deeper Economic Frustration
Under the last administration, real wage growth was lower and inflation higher. The disaffected American worker saw Trump as a potential solution.
-
•
Central Bankers, Let the Price System Work!
“Congress is free to define ‘price stability’ however it wishes. If it wants a strict inflation target in all circumstances, that’s its right. But legislators would be well-advised to pay close attention to the microeconomic foundations of monetary policy.” ~ Alexander W. Salter
-
•
Who Bears the Burden of Dollars’ Falling Purchasing Power?
“Inflation is not a one-trick pony, with an easily predictable outcome. Rather, it does several things at the same time. Looking at claims like the eradication of a dollar’s purchasing power is misleading: it is not the case that inflation has ripped off savers by eradicating 97% of their savings’ worth.” ~ Joakim Book
-
•
Free Down Payments and Subsidized Mortgages are Not Social Justice
“Despite 50 years of debacles, politicians are still glorified for pretending that free downpayments and subsidized mortgages are “magic beans” that multiply social justice in America.” ~ James Bovard
-
•
When Did the Bank of England Become a Lender of Last Resort?
It happened sometime after the crisis of 1847.
-
•
Safe Banks Are Probably Not What You Want
Why wouldn’t we want safe and stable banks? Like almost everything else in economics, benefits in one area comes with real costs in others.
-
•
How Do Bankers Create Value?
Successful banks move resources from lower-value to higher-value uses while unsuccessful banks move resources from higher-value to lower-value uses.
-
•
Competitive Full-Reserve Banking
Historically, fractional-reserve banks have always won out against their full-reserve cousins. But times have changed.