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There's a popular myth that all economic growth comes from the private sector, that governments necessarily work inefficiently, that government intervention is always harmful. I think Friedman has provided us with some great insights into the functioning of markets and the value that markets...

Please explain why you think that all trade with external entities that do not use the same currency would have to be eliminated and I'll tell you where you go wrong. You seem to be fixated on an outcome that you think is certain: inevitable hyperinflation. I've already explained why this...

Read my most a few times. I'm not playing word games or assigning arbitrary definitions. I give a clear reason why I treat "sovereign control" the way I do. Governments with sovereign control of their currency do not issue debt to finance their operations. They don't need to. They issue debt...

Governments provide the necessary infrastructure for the private sector to operate. They do this by providing jobs in the military, in law, in regulation, in education, health care and other vital sectors of the economy. Government intervention can sometimes be harmful to economic growth, but...

Not true. To peg a currency is to surrender sovereign control of your currency to another nation. It introduces a foreign standard just like pegging a currency to the gold standard does. According to your trail of thought you might as well call the adoption of the gold standard an example of...

Iceland has been a disasterous experiment in monetary policy. For years it floated double digit interest rates which spawned a financial industry that lived off the interest arbitrage. Ofcourse now the arbitrage is over there is no reason for those banks to be in business. Iceland has no reason...

The EMU should start a treasury department that would be capable of financing the budget deficits of countries like greece and portugal. Such an institution would then be the equivalent of a monetary sovereign. To such an institution cash flows are irrelevant as they create the tokens called...

Argentina and Russia both had dollar-pegs at the time of default, which is what got them into trouble. There have been no defaults of countries who's debts are denominated in a fiat currency they have sovereign control over. There will not be any either as there's no reason to default. They're...

Debt monetization is a great tool to add liquidity and stabilize interest rates. It does not cause "political and social unpleasantness" but it solves a financial crisis. What governments currently do not understand is that in order to maintain the post-financial crisis stability they should...

You're making three mistakes: 1. If bondholders are always returned their principle and interest then there is no default or bankruptcy. 2. Printing money does not create hyper inflation and depression. The value of a currency derives from a government's demand that taxes are paid in that...

Not necessarily. The previous post was adressed to anyone who would entertain the notion of the Japanese government going bankrupt. You've made some informed posts where you point out that the yen has been a strong currency and interest rates on JGBs have been moving down, not up. You do seem to...

If you think that a government can go bankrupt when its liabilities are issued in its own currency then you're clueless. The japanese government can never go bankrupt as they can just print money to pay off all outstanding liabilities. This isn't personal finance, this is government finance...

A vacant life lived...

QE2&3 don't work Yields on the 10yr Treasury bond drop to 1.5% France leaves the EMU and reintroduces the Franc

I always keep an eye on the IPO market as a sentiment gauge. The Bankers who take companies public always have a large network they utilize to raise capital so if an IPO like Harrah's gets cancelled that's telling of the negative sentiment out there.

This just begs the question. The same question could then be asked in reference to the 10 minute fractal.

Jack, the following question involves the use of DOM and granularity in order to identify the change between dominant to non-dominant on our trading fractal . I've observed that price advance in a dominant trend often involves a stalling period on decreased PRV. This would correspond to a...

I went camping in Schwarzwald, Gemany this summer and set up camp next to a Colombian-American family. The Pater-Familias was stationed in Bavaria with the U.S. Army. I told his wife that we will be camping for two weeks. She was suprised: they only had a four day leave after her husband came...

Thanks, I'll look into Blanchot and Jebes. Usually I avoid french intellectuals like the plague but I'm willing to give them a chance since they were involved with Levinas (one of the few french intellectuals whom I respect). I give guys like Lacan and Derrida a free ride as I simply ignore...

Thanks Wallace, good find.