What Is A Trillion Dollars?

According to the Bureau of Engraving, a dollar bill is .0043 inches thick. A stack of a trillion dollar bills would reach up 358 million feet, or 67,866 miles. . . . → Read More: What Is A Trillion Dollars?

Newspapers Evaporating At Tremendous Speeds

ANOTHER ONE BITES THE DUST

There are tremendous changes underway in the journalism industry of epic importance that effect your personal liberty and finances.  I do mention some of my competitors so obviously this article is biased.  Newspapers are like blogs except expensive, dirty and a less efficient form of information manufacturing.  It is difficult for . . . → Read More: Newspapers Evaporating At Tremendous Speeds

Currency exposure of Indian firms

Under a floating exchange rate, firms have a correct estimate of how risky it is to have unhedged foreign currency exposure. When a central bank artificially distorts currency volatility downwards, as RBI has often done, this gives out the wrong incentives to take on foreign currency risk. Now firms in India are lobbying that . . . → Read More: Currency exposure of Indian firms

What Will it Take to Get Sustainable Recovery?

This morning Jim asked me how long it will take for the Australian economy to get back on a sustainable growth path. I was not able to answer directly. I suggested that what happens to economic growth in Australia will depend on what happens in the rest of the world. I added that if . . . → Read More: What Will it Take to Get Sustainable Recovery?

Supply, Demand and Price

The CEO of the Perth Mint gave a presentation to the WA chapter of the Australian Institute of Company Directors on Wednesday that I thought I’d share with you. It was only three slides as it was a 10 minute slot. All of the figures behind these charts come from the World Gold Council.

. . . → Read More: Supply, Demand and Price

What Do We Mean by Market Efficiency?

I ran into Jim again yesterday. Actually it would be more true to say that he ambushed me. I turned a corner and there he was. After the way he treated me in our first discussion reported here I was not particularly looking forward to talking to him again.

Jim said: “I enjoyed our . . . → Read More: What Do We Mean by Market Efficiency?

Why the RIAA will lose in Court

It’s only a matter of time before the RIAA finds out that an outraged public will not tolerate an invasion of their privacy. Telling people what to do in the privacy of their own home will never be tolerated. . . . → Read More: Why the RIAA will lose in Court

What Can the G20 Do About Protectionism?

We have got to be absolutely clear that protectionism offers no solution. It’s the road to ruin. It protects no-one in the long run at all and we are for a free trade world where we remove barriers rather than create barriers, no matter what the temptation is at this particular point in time . . . → Read More: What Can the G20 Do About Protectionism?

Restart the bubble

An interesting statement buried in the comments to Steve Keen’s latest blog entry (which itself is worth reading as it discusses how neoclassical economics got us into this mess and how [if] it can be changed – as usual with the Keen blog, the comments are just as illuminating):

I have spoken to many . . . → Read More: Restart the bubble

Christina Romer on Fox News Sunday

The Congressional Budget Office has pronounced the multi-trillion dollar Obama Budget too expensive and too wildly optimistic on out-year economic growth projections. Challenged on this, Christina Romer answers back that the CBO’s out-year GDP growth estimates of 2.2-2.3% are too pessimistic.

Those are sluggish numbers, but the CBO is taking on board the fact . . . → Read More: Christina Romer on Fox News Sunday