The name of the game these days among European political and monetary leaders is to look for rich friends. Who knew that the Beatles had such a prophetic sense about monetary policy?
What would you think if I sang out of tune
Would you stand up and walk out on me
Lend me your ears and I'll sing you a song
and I'll try not to sing out of key
Oh, I get by with a little help from my friends
Britain, of course has shown itself less willing to be a friend in need to its European neighbors. The singing in most of Europe is very off key. Still, everyone thinks that they should have a lot of German friends. Perhaps it might be a bit more advantageous to follow the lyrical advice of Fagin, the shifty villain in the musical Oliver who sang of his economic options: “I’m reviewing the situation.”
You don’t have to advocate the gold standard to understand that the dollar’s reserve currency role is in trouble and in need of review. Christopher Whalen wrote in the May-June issue of The National Interest that “should America’s political leaders continue to embrace the policies of borrow and spend championed by Paul Krugman and other mainstream economists, the likelihood is that Washington will not be able to preserve the dollar’s special role. Just as nations cannot substitute inflation and debt for true production and employment without slowing destroying the underlying purchasing power of their people, American cannot continue to play a leading geopolitical role in the world if its domestic economy falters.”
The answer to Europe’s problems and the solutions to the dollar’s reserve currency role will probably not be found in Europe. As Lewis E. Lehrman writes in the introduction to Money and the Coming World Order: “Only a stable dollar, defined by law as a weight unit of gold, can displace our speculative, paper-currency, financial casino with incentives to save and invest in real production facilities and jobs—instead of wasteful, ubiquitous inflation hedges and government welfare subsidies.”
George Gilder, whose new book publishes today, is one of the original pillars of Supply Side economics. As stated by Discovery Institute, which he co-founded, “Mr. Gilder pioneered the formulation of supply-side economics when he served as Chairman of the Lehrman Institute’s Economic Roundtable, as Program Director for the Manhattan Institute….”
He was the living writer most quoted by President Reagan. And he is back with his most brilliant work yet — one of potentially explosive importance if taken to heart by our political and policy thought leaders. It is a radical guide, with surprising insights on almost every page, to the creation of a new era of vibrant prosperity.
As reviewer Paul Brodsky, a professional investor in New York City, perceptively notes,
"Lewis Lehrman is one of a very small group of contemporary gold advocates able to successfully bridge the gap separating practical conservative intellectualism from fleeting, half-baked idealism. His CV lists great success across many fields including education (degrees and teaching fellowships from Yale and Harvard); industry (past president of Rite Aid); politics (narrow loser to Mario Cuomo in the 1982 New York governor’s race); finance, (past Morgan Stanley managing director); private sector entrepreneur (founder, L. E. Lehrman & Company); public sector advocate (founder, Lehrman Institute); historian (author, Lincoln at Peoria: The Turning Point); and recognized philanthropist (awarded the National Humanities Medal by George W. Bush in an Oval Office ceremony). ... Only someone erudite and elegant in demeanor could hope to pull it off . In an irreconcilably over-leveraged world where irritated bond vigilantes question economic sustainability and angry Tea Partiers protest the immorality of it all, Lehrman’s views are considered and his convictions carry weight. He brings gravitas to his cause, and he does so from within as a member of the club."
Before the Fed: JP Morgan Summons the Bank Presidents
"Finally, on the night of Sunday, November 2, Morgan summoned the presidents of the major New York banks to his new library, at the corner of Madison Avenue and Thirty-sixth Street, an Italian Renaissance-style palace he had built next door to his house to showcase his collection of rare books, manuscripts, and other artwork. Its marble floors, frescoed ceilings, walls lined with tapestries and triple-tiered bookcases of Circasian walnut, crammed full of rare Bibles and illuminated medieval manuscripts, made it an incongruous setting for a meeting of the banking establishment. Once the moneymen had gathered, Morgan had the great ornamental bronze doors to the library locked and refused to let anyone leave until all had collectively agreed to commit a further $25 million to the rescue fund."
— Liaquat Ahamed, Lords of Finance (Penguin Books, 2009, p. 54)
Lately we have been engulfed by headlines reporting financial turmoil on every continent, in almost every nation, large and small. The commissars of central planning who so marred the history of the 20th century have been replaced by central banks in the 21st. In Cyprus, the new leadership now dares to confiscate citizens’ wealth with a one-time tax of up to 60 percent on bank deposits above 100,000 euros. Self-interested prime ministers blame continental monetary policies for instigating the currency wars that they themselves surreptitiously carry on.
Constitution.org provides an extensive and thoughtful Memorandum of Law by Larry Becraft, Esq., of Huntsville, Alabama, on Article I, Section 10, clause 1 of the US Constitution.
Sir William Blackstone courtesy of Wikipedia
One of many interesting matters the Memorandum treats is Blackstone's Commentaries, a book that was a fixture in the...
The value of the yuan has been slowly rising. The value of the Japanese yen has been sharply falling. Abenomics is attempting to reflate the Japanese economic – slowly, slowly. “Japan is back!” Prime Minister Shinzo Abe tells the Japanese.
Coming back isn’t easy. The Financial Times’ Jonathan Soble has noted...