Friday, 25 September 2009


G20 leaders map out new economic order at Pittsburgh summit

G20 leaders, installing themselves as permanent stewards of the world economy for the first time, agreed today on a tighter regime on bankers' bonuses and mapped out a new economic order ... while elsewhere in Pittsburgh...

Sonic Warfare Erupts in Pittsburgh, Honduras

Police in Pittsburgh are using sound blasters and other non-lethal weaponry to ward off protesters at the G-20 summit.

Ask the environmental health to come on the next demo ... and tell the government to KEEP THE NOISE DOWN!

Monday, 14 September 2009

Anniversary of a near-death

One year from the day the financial system stared into the abyss, how the world has changed

IN THE days following that fateful collapse of Lehman Brothers almost exactly a year ago, Mohamed El-Erian, CEO of Pacific Investment Management Co, the world's largest bond-fund manager, feared the worst. 'I remember at the end of the week calling up my wife and saying, 'Jamie, go to the ATM, go to the cash machine, and take cash out',' he told Bloomberg. 'She said, 'Why?' I said, 'I don't know whether the banks are going to open tomorrow'.'

On the other side, Piyush Gupta, Citi's CEO for Southeast Asia, remembers doing everything to prevent a run on the bank. He told BT: 'We were really concerned because we saw a lot of people coming in, wondering if they can cash out. Now, the first rule in banking is never to let a bank run happen. Once a bank run happens, you're just dead.'

Friday, 4 September 2009

The Encyclopedia

The Encyclopedia of public choice, Volume 2

Fiat money has no inherent value. Its exchange value depends on a vast system of iterated beliefs: today a person is willing to accept dollars for a cow ...

tomorrow the cow is his only valuable asset - the dollars are worthless pieces of paper.

Can a Central Bank Go Broke?

Can a Central Bank Go Broke?

Centralized monetary authorities enjoy a privileged position in the current monetary system. People tend to view the economists and politicians at these institutions as demigods, individuals who if given enough resources will ensure that the economy continues an ever-advancing and smooth trajectory. However, unlike the Greek demigods of yore, today's central bankers are mere mortals who must work within the confines and constraints of the institution that they head.
While they present an aura of invincibility, the truth is that the effectiveness of their policies faces severe limits.

Central banks enjoy a revered position in discussions on monetary matters. At their disposal are a seemingly endless array of tools and weapons ready to correct any market "imbalance" that threatens economic stability. However, these institutions are only as useful as the assets they represent.