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“Political Hacks, Statists, and Keynesians” (Or Do I Repeat Myself)

April 20, 2013 in Economics

By Thomas DiLorenzo

“[T]he clique of political hacks around Karl Rove who ran the Bush White House were so unlettered in the requisites of sound money and free market economics that, over and over, they caused the nation’s top economic jobs to be filled by statists and Keynesians.  Thus, professors Glenn Hubbard, Greg Mankiw, and Ed Lazear had no problem whatsoever advising George Bush that two giant tax cuts and two unfunded wars were entirely copacetic from a fiscal viewpoint.  After all, the huge resulting deficits provided a Keynesian pick-me-up to the prosperous classes.”

– David Stockman, The Great Deformation: The Corruption of Capitalism in America, p. 50.

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Source: MISES INSTITUTE

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The Ultimate Stress Test

April 20, 2013 in Economics

By Mark Thornton

Peter Schiff makes a few calculations on Japan’s anti-deflation campaign.

In the years following the global financial crisis, economists and investors have gotten very comfortable with very high, and seemingly persistent, government debt. The nonchalance may be underpinned by the assumption that globally significant countries that can print their own currencies can’t get trapped in a sovereign debt crisis. However, it now appears that Japan is preparing to put this confidence to the ultimate stress test.

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Source: MISES INSTITUTE