Yves here. While the impetus for Steve Keen’s post is the ECB’s latest pretense that it can and is doing something to combat deflation, he provides an excellent and short debunking of two widespread misconceptions about money and banking. The first myth is the money multiplier and the second is that reserves are the basis for bank lending.
Tuesday, September 16, 2014
Today’s Water Cooler: Elite factions getting cold feet on Obama’s ISIS war, Ferguson and Amnesty International (and debate?), Steven Salaita, and robot bartenders.
Economists occasionally point out that societies generally move to the right during periods of sustained low growth and economic stress. Yet left-leaning advocates of low or even no growth policies rarely acknowledge the conflict between their antipathy towards growth and the sort of social values they like to see prevail. While some “the end of growth is nigh” types are simply expressing doubt that 20th century rates of increase can be attained in an era of resource scarcity, others see a low-growth future as attractive, even virtuous, with smaller, more autonomous, more cohesive communities.
Posted by Yves Smith at 6:55 am |
Home sales have been declining since last fall and in some cases steeply, with memories of bidding wars early last year triggering wistful sighs. The sales decline continued into the summer, and indications are that they’re dragging into September as well. But the median sale price continued to rise, if at a slower rate, and in many areas has moved out of reach for the median-income household.
The IEA dropped a little bombshell yesterday by ‘fessing up that the economic prospects for Europe and China are so crappy that the outlook for oil prices is less than robust, even with the US bristling to go after its new favorite Middle Eastern nemesis, ISIS.
All in the Family: How the Koch Brothers, Sheldon Adelson, Sam Walton, Bill Gates, and Other Billionaires Are Undermining America
Yves here. Even though monied dynasties have long had outsized influence in the US, Steve Fraser contends that billionaires and their scions like the Koch brothers, the Walton heirs, and Sheldon Adelson wield far more power than their predecessors and are in the process of remaking America.
War news in clickbait headlines, social capital in Ferguson, the Apple Watch, and wholesale trade stats. And I remember where I was on 9/11.
The Fed routinely makes decisions and pursues policies which result in it achieving the opposite of its stated goals and forecasted outcomes.
Posted by Yves Smith at 6:55 am |
I strongly suggest you read Georgetown law professor Adam Levitin’s new post on why he believes Apple’s newly announced Apple Pay service puts Apple under the CFPB’s jurisdiction but virtue of having made itself a regulated financial institution. And Levitin means all of Apple’s consumer services, not just Apple Pay. He believes that Apple is […]
Race mattes. New Fed data shows that the top 10% of whites possess over 65% of all US wealth.
Matt Stoller: 5 Reasons for the Zephyr Teachout Phenomenon, and 5 Reasons Andrew Cuomo Is Still Governor
“New York’s a small town run by 1,000 decision-makers.” So says Hank Sheinkopf, a consultant in New York politics for more than 40 years and bouncer for the billionaire-fueled New York Democratic establishment. So how did Zephyr, who was not one of those decision-makers, have such an impact? I’ll try to answer that question and offer some observations her campaign and what it meant.
ISIS, ISIS, ISIS, ISIS, ISIS, ISIS, ISIS, Cuomodammerüng, MH17, Ferguson, and why can’t George R.R. Martin get it together?!