Paul Ryan, a former speaker of the House of Representatives, has assessed the possible role that stablecoins will play in fighting an upcoming U.S. debt crisis. According to Ryan, the demand derived from the increasing relevance of dollar-backed stablecoins, which use U.S. treasuries as backing, will help keep a healthy demand on U.S. debt and […]
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Nobel Laureate Paul Krugman Claims ‘Inflation Bump Is Over’ — Peter Schiff Says Krugman’s View ‘Should Be Dismissed’
Nobel Prize-winning economist Paul Krugman and gold advocate Peter Schiff are in disagreement over inflation. Krugman believes that “the inflation bump is over.” However, Schiff argues that Krugman didn’t even foresee the inflation bump, emphasizing that the Nobel laureate’s view on inflation should be disregarded. Schiff explained that “all indicators point to a reacceleration of […]
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Congressman Rand Paul Reintroduces ‘Audit the Fed’ Bill
Congressman Rand Paul reintroduced the Federal Reserve Transparency Act, also known as the “Audit the Fed” Bill, as a standalone piece of regulation into the U.S. Senate. The bill seeks to take the lid off what Paul considers to be the “entirely unknown inner workings” of the U.S. Federal Reserve and its operations.
Senator Rand Paul Announces Reintroduction of Federal Reserve Transparency Act
U.S. Senator Rand Paul from Kentucky announced he was reintroducing the Federal Reserve Transparency Act, also known as the “Audit the Fed” bill, into the U.S. Senate. The regulation aims to bring transparency and oversight to the inner workings of the U.S. Federal Reserve, which Paul criticizes as obscure and almost entirely unknown.
In its current form, the bill would repeal the current statutory protections preventing the organization of a full audit of the Board of the Fed and its banks, ordering the U.S. Government Accountability Office (GAO) to scrutinize the Fed’s actions, transactions, and decisions and report to Congress about the findings.
Paul states that the actions of the Federal Reserve have affected countless lives, as the institution rallied to print billions of dollars during the COVID pandemic, providing money to industry favorites under the guise of “stimulus” packages.
Paul explains that the current inflationary problems, which he attributes to the Fed’s actions, have affected the capabilities of Americans to buy food, turning “basic needs into unattainable luxuries.” He stressed:
The Fed’s persistent cycle of money printing and lending without any form of meaningful oversight may be the cause of many of our economic hardships, such as the struggle of many Americans to afford food.
The act, reintroduced on January 11, has the support of Senators Todd Young, Mike Lee, Ted Cruz, Mike Braun, Chuck Grassley, Roger Marshall, John Barrasso, and Marsha Blackburn and is co-sponsored by Senator Jim Risch.
Paul’s bill is the last attempt in a long line of efforts to try to bring transparency and accountability to the Federal Reserve, with his father, Ron Paul, also being one of the biggest supporters of this kind of action.
What do you think about the Federal Reserve Accountability Act? Tell us in the comments section below.
Economist Steve Hanke Blasts Nobel Laureate Paul Krugman’s ‘Global Phenomenon’ Inflation Remark
Johns Hopkins University applied economics professor Steven Hanke has lambasted fellow economist and Nobel laureate Paul Krugman’s claim that inflation is a “global phenomenon.” Paul Krugman suggested that progressive U.S. citizens can still be convinced that the Biden administration has done well with the economy.
Krugman Accused of Spreading Disinformation
Steve Hanke, a professor of applied economics at Johns Hopkins University, has criticized fellow economist and Nobel laureate Paul Krugman for claiming that inflation is a “global phenomenon.” In a post on X (formerly Twitter), Hanke characterized Krugman’s latest op-ed article in the New York Times as another of the Nobel laureate’s disinformation pieces.
In his Dec. 7 installment, Krugman argues the case for Bidenomics, a term used to describe the economic policies of U.S. President Joe Biden. While he has given up on persuading conservatives, Krugman suggested that progressive U.S. citizens can still be convinced that the Biden administration has done well with the economy.
To support the assertion that the U.S. economy has done well during the Biden presidency, Krugman points to the rise in the labor productivity rate in the third quarter. The Nobel laureate also referred to the unfilled job openings gap, which “has now largely disappeared.”
Dismissing claims that U.S. monetary authorities have failed to control inflation, Krugman directed readers’ attention to workers’ earnings, whose growth rate is said to have significantly outpaced the inflation rate.
However, in his Dec. 9 post on X, Hanke said it is wrong for Krugman to claim that the U.S. has contained inflation. He said:
“WRONG. Inflation is always and everywhere LOCAL, not GLOBAL. Where central banks control the money supply, inflation is low and stable. Just look at tiny, well-managed Switzerland, where inflation is 1.4%/yr. And giant China, the largest economy in the world (when measured on a PPP basis), where inflation is 0.2%/yr.”
Krugman Versus Hanke
The Johns Hopkins economics professor’s latest rejection of arguments put forward by Krugman is not the first time he has taken such a stance. In October, when Krugman declared victory in the United States’ war on inflation, Hanke similarly dismissed the Nobel laureate’s remarks.
The war on inflation is over. We won, at very little cost pic.twitter.com/opumf3nEvL
— Paul Krugman (@paulkrugman) October 12, 2023
Interestingly, when Hanke said the headache of inflation was gone in July, Krugman and another economist Mohamed El-Erian were reportedly not sure.
What are your thoughts on this story? Let us know what you think in the comments section below.
Senator Rand Paul: Out-of-Control Government Spending Threatens ‘the Very Existence’ of US Dollar
U.S. Senator Rand Paul has cautioned that the government’s “out-of-control spending” is threatening the very existence of the U.S. dollar and even the country. Commenting on the government spending billions of dollars to help multiple countries, Paul warned: “They’ll bankrupt our country in sending money everywhere all over the planet.”
Senator Rand Paul’s USD and Economic Warnings
U.S. Senator Rand Paul (R-KY) expressed concerns during an interview on Fox News, released on Sunday, about the potential economic impact of the U.S. government spending billions of dollars in aid to multiple countries simultaneously.
Replying to a question about whether the conflicts in Ukraine and Israel are related, Senator Paul stressed:
I would only say they are only related in the sense that they’ll bankrupt our country in sending money everywhere all over the planet.
“It is probably the greatest threat to our national security if that’s what we are thinking that we’re supposed to do … to protect our national security. The greatest threat to it is the national debt. We borrowed a trillion dollars in the last three months,” the senator from Kentucky cautioned. He further warned:
It is out-of-control spending, and we are threatening the very existence of our currency, and perhaps our country, by this crazy, profligate spending.
Many people have similarly warned about the impact of excessive government spending. JPMorgan CEO Jamie Dimon recently said he is worried about the U.S. economy because “the fiscal money being spent is so big, the largest in peacetime ever … with very high deficits and QT we’ve never had.” He also warned of “the most dangerous time the world has seen in decades.”
Billionaire “Bond King” Jeffrey Gundlach said last month: “The future of the U.S. dollar, and possibly out-of-control inflation, depends on getting the budget and spending under control.” Economist and gold bug Peter Schiff has sounded the alarm on government spending on many occasions. He has predicted a full-blown financial crisis and a U.S. dollar crisis as the national debt spirals out of control.
Meanwhile, renowned investor Jim Rogers has warned that the era of U.S. dollar dominance is ending, with the Chinese yuan as the sole contender to replace the USD. Additionally, global financial services firm Jefferies cautioned last month about the potential collapse of the U.S. dollar.
Do you agree with U.S. Senator Rand Paul about the threat to the U.S. dollar by out-of-control government spending? Let us know in the comments section below.
Billionaire Paul Tudor Jones Sees ‘Most Threatening’ Geopolitical Environment — Warns of China, Russia, Iran
Billionaire investor Paul Tudor Jones has warned of the effects of the geopolitical uncertainty around four nuclear powers, including China, Russia, and Iran. “It might be the most threatening and challenging geopolitical environment that I’ve ever seen,” Jones stressed. “It is also happening at the same time the United States is in its weakest fiscal position since World War II.”
‘Most Threatening and Challenging Geopolitical Environment That I’ve Ever Seen’
Billionaire hedge fund manager Paul Tudor Jones, founder and chief investment officer of Tudor Investment Corp., discussed the impact of global geopolitical conflicts on markets in an interview with CNBC Tuesday.
Commenting on the war between Israel and Hamas, he said what is happening in Israel is “a huge tragedy.” However, Jones stressed: “You have to put it in a larger geopolitical context.” The billionaire explained: “We now have possibly three theaters where we’re going to have geopolitical challenges. We’ve got the Middle East and Israel, obviously the Ukraine and Russia, and then at some point down the road Taiwan and China.”
The Tudor Investment founder added:
It might be the most threatening and challenging geopolitical environment that I’ve ever seen.
“Because you have four nuclear powers, three of whom are led by sociopaths, and that would be China, Russia, and North Korea. Obviously, those leaders have zero accountability, or responsibility, to anyone but themselves. And they have not an ounce of humanity in their bones because they regularly disappear both their friends and enemies,” he described.
Jones continued: “And then the fourth, Iran, is led by someone who thinks God is talking to him and has avowedly said that they want to remove from this earth a nation-state with probably the most brilliant people ever assembled within a national boundary.” Regarding the conflict between Israel and Hamas, Jones cautioned:
Where this really gets bad is obviously if Iran and Israel get in direct conflict. That’s when it really gets bad because then you’ve got the ability to have kind of a First World War cascade when everyone gets involved.
Noting that “It’s a really challenging environment” and “a very threatening time,” Jones pointed out:
That is also happening at the same time the United States is probably in its weakest fiscal position since, certainly, World War II with debt-to-GDP at 122%. So, it’s a really tough time.
Jones was also asked whether his stance on bitcoin has changed. “I like bitcoin and I like gold right here,” the billionaire hedge fund manager affirmed, adding: “They probably take on a larger percentage of your portfolio than historically they would because we’re going to go through both a challenging political time here in the United States and … We’ve obviously got a geopolitical situation.” Moreover, he noted: “It’s a really challenging time to want to be an equity investor in U.S. stocks right now … because again you’ve got the geopolitical uncertainty.”
Do you share the same concerns with renowned hedge fund manager Paul Tudor Jones? Let us know in the comments section below.
Paul Krugman: ‘The War on Inflation Is Pretty Much Won’ – Claims ‘Remarkable Disinflation’ Occurred
On Wednesday, Nobel Prize-winning economist Paul Krugman provided a brief analysis of the current economic landscape in the United States. Krugman asserted that the nation has experienced “remarkable disinflation.” According to him, the available data paints a compelling picture, suggesting that the “war on inflation has been pretty much won — without a recession.” Krugman emphasized that inflation turned out “to be transitory,” contrary to initial apprehensions.
Krugman Declares Victory — ‘Inflation Turns Out to Have Been Transitory After All’
On Wednesday, the U.S. Bureau of Labor Statistics (BLS) unveiled its eagerly anticipated Consumer Price Index (CPI) report, shedding light on the nation’s current inflation rate. The report revealed a notable surge in the CPI for all urban consumers, marking a 0.6% increase in August when adjusted for seasonal variations. This significant uptick followed a 0.2% rise in July, making it the most substantial month-to-month price escalation witnessed in well over a year.
The development has prompted market analysts to lean towards the expectation that the U.S. Federal Reserve will opt for a federal funds rate increase during their upcoming meeting. In the wake of the report from the BLS, Paul Krugman felt compelled to weigh in, offering his insights on what he saw as “bad takes on CPI out there.” Krugman emphatically stated that, if we exclude “volatile components, we’ve seen remarkable disinflation.”
In stark contrast to the prevailing sentiment among most Americans, the economist painted a considerably brighter economic picture. Krugman said:
Bear in mind that core is still being distorted by lags in the measured price of shelter. So basically the data are now saying that the war on inflation has been pretty much won — without a recession. We could still have a recession. But it will be a policy error, not something we needed to control inflation that turns out to have been transitory after all.
When Krugman voiced his perspective on the social media platform X, it was met with a fair share of skepticism from the online community. One individual, adopting a sarcastic tone, responded by saying, “Transitory … After one of the most dramatic tightenings in living memory.”
Economist Robert Murphy also joined the conversation, offering his viewpoint, which underscored the fact that the Fed had taken actions contrary to Krugman’s recommendations. Krugman’s viewpoints have long been the subject of critique, with his recent statements only adding fuel to the fire. Some reports have argued that his self-assured responses to his own queries frequently fall wide of the mark.
Notably, in 2021, he faced backlash for his assessments of the efficacy of the substantial economic stimulus measures implemented in the wake of the Covid-19 pandemic. While Krugman has humbly conceded his misjudgment regarding the relevance of the internet, his unshakable belief in the correctness of his convictions often leads him to boldly address the public.
What do you think about Krugman’s opinion about inflation? Share your thoughts and opinions about this subject in the comments section below.
Nobel Laureate Paul Krugman States Argentina Should Adopt the Euro Instead of the US Dollar
Economics Nobel laureate Paul Krugman recently stated that Argentina might be better off adopting the euro instead of the U.S. dollar amidst the devaluation of the Argentine peso. Krugman argued that Argentina has almost twice as much trade with the European Union as it does with the U.S., stating that the euro would suit them better.
Nobel Laureate Paul Krugman Talks Dollarization in Argentina
American Nobel laureate Paul Krugman recently issued his opinion about the possible dollarization process that Argentina might face later this year. Krugman, who won the Nobel Prize in Economic Sciences in 2008 for his analysis of trade patterns and the location of economic activity, argued that the dollar might not be the better substitute for the Argentine peso, given the trade realities of Argentina.
Answering a post where Brad Setzer — an economist who worked at the treasury department of the U.S. — compared the circumstances of the U.S., Canada, South America, and North America as “optimum currency areas,” Krugman stated:
Argentina does almost twice as much trade with the European Union as it does with the U.S. If anything, they should adopt the euro.
Setzer declared that Latin American exports were tied to the Chinese and global commodity cycle instead of the U.S. cycle, detailing that the U.S. dollar was not a commodity currency.
These statements answered the issue presented by Arpit Gupta, an associate professor of finance at New York University’s Leonard N. Stern School of Business, where he speculated about the possible drawbacks of the U.S. promoting the unification of the currency towards Latin America and “trying to more actively push for a common dollar zone along the lines of the euro.”
U.S. Dollar as a Lifeline
The dollarization debate has intensified in Argentina since August 13, when Javier Milei, a libertarian candidate, won the preliminary elections with more than 30% of the popular vote. Milei’s government plan includes, among other proposals, cutting state spending by reducing the number of ministries and reducing inflation and devaluation by adopting the dollar as fiat currency.
Just last week, the Argentine government had to devalue the official exchange rate of the peso, with it reaching 350 pesos per dollar. But the unofficial and parallel exchange rate of the peso, called the “blue” rate, reached almost 800 pesos per dollar, disrupting the pricing of goods in retail stores and causing Argentines to seek refuge in stablecoins.
Milei had stated before he had the resources needed for the dollarization of Argentina, having reached an agreement with undisclosed third parties.
What do you think about Paul Krugman and the dollarization of Argentina? Tell us in the comments section below.
Nobel Laureate Paul Krugman: Alien Invasion Is Inflationary, Government Should Claim Imminent Alien Attack
Nobel Prize-winning economist Paul Krugman believes that an alien invasion would be inflationary, not deflationary. He reiterated that “the government should lie and claim that we were facing an imminent alien invasion.” He added: “If there is intelligent life out there, it’s almost surely thousands or millions of years ahead of us.”
Paul Krugman on Alien Invasions
Nobel laureate Paul Krugman discussed a variety of topics, including alien invasions and the U.S. economy, on Bloomberg’s Odd Lots podcast, published Friday. Krugman won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 for his analysis of trade patterns and location of economic activity.
He was asked: “Do you think there could be life elsewhere in the galaxy?” The economist replied: “I would think that it’s extremely unlikely that there isn’t.” Krugman was also asked: “Would an alien invasion be deflationary or inflationary?” The Nobel laureate replied:
I think that we can say it pretty almost surely would be inflationary.
“Wars almost always are. And uncontested alien invasion, I guess it kind of depends on how they run the occupation,” he opined. “But actual wars are always inflationary. I can’t think of one that wasn’t. They always involve big government spending. Actually, they always involve a collision between large spending and at least temporarily reduced productive capacity.”
Krugman added:
I said that the government should lie and claim that we were facing an imminent alien invasion. And that in order to fight that imminent alien invasion, what we needed was better infrastructure.
“So we should have a big public infrastructure platform because things that people would never agree to simply in order to make people’s lives better, they will agree to in order to fight invasion,” he emphasized.
The economist took to Twitter after appearing on the podcast to clarify his view on alien invasions. “If there is intelligent life out there, it’s almost surely thousands or millions of years ahead of us. Not the kind of beings who’d be interested in invading Earth, let alone beings that Will Smith and Jeff Goldblum could outwit,” Krugman tweeted.
What do you think about Paul Krugman’s statements regarding alien invasions and the U.S. economy? Let us know in the comments section below.
Robert Kennedy Jr and Ron Paul Agree America Doesn’t Have a Free Market
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) and former U.S. Representative Ron Paul agree that America does not have a free market. Referencing RFK Jr. stating that America has “a crony corporatist system,” Paul stressed: “He’s right!”
RFK Jr. and Ron Paul on Free Market
Former U.S. Representative Ron Paul has expressed his agreement with U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.), who recently said that America does not have a free market. Kennedy is a son of former U.S. Attorney General and Senator Robert F. Kennedy and nephew of former U.S. President John F. Kennedy. Paul, an American author, physician, and retired politician, served as a U.S. representative and made three attempts to become the president of the United States. In 2015, he founded the Ron Paul Liberty Report, a platform dedicated to offering insightful opinions and analysis on contemporary issues affecting our lives and finances.
Paul tweeted Saturday: “RFK Jr. recently pointed out that America doesn’t have a free market, but rather a crony corporatist system. He’s right!”
In a follow-up tweet, Paul wrote: “The problem in America is not our ability to voluntarily transact with one another. The problem is the persistent removal of that ability; a removal conducted by the bond between politicians and crony corporations. So called ‘public/private partnerships’ are the problem.” In the Ron Paul Liberty Report episode aired on Friday, the former congressman explained why he believes RFK Jr. “is right.”
On July 26, RFK Jr. said during an interview with Fox News: “We have a system of cushy socialism for the super-rich, and this brutal, savage, merciless capitalism for the poor. And it’s all designed to strip-mine the middle class of this country of all their equity, all of their assets, and move it to the upper echelons.” The presidential candidate tweeted following the interview:
We don’t have free market capitalism in this country. What we have is socialism for the super-rich and brutal capitalism for the poor.
Do you agree with presidential candidate Robert F. Kennedy Jr. and former congressman Ron Paul that America does not have a free market? Let us know in the comments section below.