Obama’s Wrecking Ball Administration

miley cyrus sulla palla demolitrice

This past Friday, the U.S. Department of Justice filed its expected petition for certiorari in Texas v. United States, involving several states’ challenge to the administration’s “deferred action” program (“DAPA”). DAPA would grant deferred action—and, along with it, work permits and other benefits—to several million immigrants who are unlawfully present in the United States. The Fifth Circuit Court of Appeals affirmed a preliminary injunction against DAPA on November 9; DoJ’s petition to review that preliminary ruling on an expedited schedule arrived within a fortnight. Why the haste, my child? Well, on an expedited schedule this case could still be heard and…

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The Central Bank of Switzerland Announces a Huge Loss: Would the Fed Ever Be This Honest?


The Swiss National Bank (SNB) has just announced an eye-popping net loss for the first quarter of 2015: 30 billion Swiss francs, or $32 billion[1]. A participant in its recent shareholders meeting shortly before the announcement told me “the directors looked very stressed.”

How does a money-printing central bank lose money?

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Should the Federal Reserve Be Free of Supervision While It Carries Out Vast Monetary Experiments?


The “Audit the Fed” proposal of Senator Rand Paul (R-Ky.) elicits a surprising amount of emotion, from opponents and supporters alike. Why should this be?

“Monetary policy” purposefully sounds technical and dull—you like it that way if you want to keep it the domain of supposedly objective experts who don’t want any mere politicians interfering in their elite central banking club. But money affects everybody and is an emotional topic, especially if the Fed is on purpose crushing you, as it currently is doing to savers, in order to benefit borrowers and speculators.

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The Economic Crash that Cured Itself: A Conversation with James Grant


What if a profound economic downturn occurred and the federal government basically ignored it? Couldn't happen, right? In his latest book, The Forgotten Depression, James Grant details for us the depression of 1921 and how it was permitted to cure itself. We discuss in this podcast how the Wilson* and Harding administrations let prices and wages fall, balanced the budget, and raised interest rates through the Federal Reserve. The result was a painful and, more importantly, quick depression that righted itself by late 1921, setting the stage for the economic growth of the 1920s. The comparisons are easy and telling. The…

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A Cheer or a Bronx Cheer for the Fed?

Federal-Reserve-BuildingIn the financial crisis of 2007 through 2009, the Federal Reserve expanded its balance sheet to finance the bust, just as intended by its legislative fathers of a century ago. They did not, of course, intend for their creation to have stoked the housing bubble in the first place. This dramatic action to make up for its own mistakes was not a first—recall the Fed’s celebrated anti-inflation strategy of the early 1980s, a reaction to its 1970s blunders that had created the Great Inflation of that previous time.

The latest crisis has been over for five years, but the Fed’s balance sheet is more bloated than ever. Its much-discussed “taper” only slowed down the rate of bloating.

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The Fundamental Left-Right Divide

In her first formal appearance as head of the United States Federal Reserve, Janet Yellen obliquely suggested the Fed might not raise its mighty “federal funds” rate to tighten the economy until months after its Quantitative Easing bond purchasing ended completely, coyly portending cheap money indefinitely. The market shuddered but soon calmed at the soothing voice of its controller.

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The Marriage of Governments and Banks—For Better or for Worse

Charles Calomiris and Stephen Haber, combining their scholarly command of banking and political institutions, have published a book full of fertile ideas, instructive histories of the evolution of a number of banking systems, and provocative interpretations of the co-dependency between banks and governments.

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Wanted: A Sound Money Congress to Discipline an Inflationary Fed

Janet Yellen makes her first appearance before Congress as the chair of the Federal ReserveThe February 11 testimony of Janet Yellen, the new Chairman of the Federal Reserve Board, to the House Financial Services Committee, described the Fed as “transparent and accountable.” However dubious a description this may be, four transparent intentions of the Fed did come through:

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Friday Roundup, February 7th

February's Liberty Law Forum engages the questions of what is American liberty and what is required to support it. Lead essay by Ted McAllister with responses from Bradley Thompson, (and upcoming) Steven Grosby, Bill Dennis, and Hans Eicholz. Getting from aid to enterprise: The next Liberty Law Talk discusses with Michael Miller, director of the Acton Institute's PovertyCure documentary, the conditions that should guide any approach to assist human flourishing in the poor regions of the world. Frequently missing, Miller highlights, in current interventions is an understanding of how crucial the rule of law, property rights, and markets are in the…

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Friday Roundup, October 11th

Edmund Burke studies: Bruce Frohnen makes an appearance in our feature review this week and takes a new book on Edmund Burke to task: In a rather facile first chapter, “Burke in Brief: A ‘Philosophical’ Primer,” Maciag goes further, dismissing Burke as a political philosopher by asserting that “whatever ‘philosophy’ Burke expounded was extracted by others from his pamphlets, letters, and orations, which were produced in the heat of political battle.” Minimizing Burke’s explicitly philosophical and aesthetic works, Maciag also eschews engagement with the substantial literature on the philosophical underpinnings of prudence and the commitment to tradition (one need only mention…

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