On 15th January, Dr Barbara Kolm, Director of the Austrian Economics Center, delivered the Keynote Presentation Between Stagnation and Recovery at the British Embassy’s annual UK Trade and Investment Forum for 2015.
Dr Kolm’s presentation gave a brief but poignant review of Europe’s performance following the financial crisis, urging political leaders to put continuous structural reform back on the agenda.
“The EU economy is struggling to shake off its lethargy. Since the crisis struck, most Member States have been unable to generate or sustain strong economic momentum. While the recovery from such a deep crisis had been expected to be very subdued, the persistence of weak growth dynamics suggests that the EU’s current predicament is particular.”by
by Sydney Williams
The FCIC (Financial Crisis Inquiry Commission), the Commission of which Representative Phil Angelides (D-CA) was chairman, reached nine main conclusions as to the cause of the near credit collapse in 2008, not one of which cited the role played by Congress, prior Administrations, or Fannie Mae (FNM) and Freddie Mac (FRE). The Commission was comprised of ten people, five Senators and five Representatives. Six were appointed by Democrats and four by Republicans. It was like having the fox investigate the stealing of chickens.by
You can’t throw a rock these days without hitting someone who’s talking about entrepreneurship and why we need to encourage more of it. In the public and private sectors — especially in higher education — innovation, enterprise, and entrepreneurship are buzzwords like never before.
A big beneficiary of this trend is the field of social enterprise. Unlike ordinary businesses, the conventional explanation goes, social enterprises use their commercial activities to promote a broader aim of human well-being rather than simple profit maximization.by
The European Central Bank has announced its intention to create out of thin air over one trillion new Euros from March 2015 to September 2016. The rationale, the monetary central planners say, is to prevent price deflation and “stimulate” the European economy into prosperity.
The only problem with their plan is that their concern about “deflation” is a misguided fear, and printing money can never serve as a long-term solution to bring about sustainable economic growth and prosperity.by
by Iain Martin
On Sunday evening, the BBC showed the first part of the landmark documentary on the Holocaust from 1985. Shoah was directed by Claude Lanzmann.
Everything you have ever heard about the overwhelming power of that remarkable and controversial film is true. If you were unaware of it, or if you haven’t seen it, I recommend that you try to find a way to get a copy.by
by Sydney Williams
The President was “defiant” wrote the New York Times; “defiantly liberal,” claimed the Financial Times. “It was an ungracious speech,” editorialized the latter. Despite setting a record, since becoming President, for the greatest number of Party-seat losses in the post-War period (14 Senate seats, 69 House seats and 913 seats in state legislatures), the President was unapologetic. With constant usage of the pronoun “I”, and with quoting himself, his ego was on full display.
Mr. Obama urged civility, yet he remained supercilious. When he said, “I have no more campaigns to run,” there was a smattering of Republican applause (allegedly derisive).by
The euro exchange rate could lose further ground in the next few weeks. Is this good or bad news and what does it mean for European companies? Not much will change for companies which decided to play for time, shied away from global competition and tried to look for help through subsidies and friendly regulation. By contrast, global players who, despite European stagnation, resisted the temptation to relocate to low-cost, low-productivity countries, and engaged in technological renovation, will reap significant rewards in higher profits and increased opportunities to expand on world markets. The euro will see increased volatility, rather than further sharp depreciation, while a weak euro will encourage new entrepreneurs to emerge.by
by John Charalambakis
As it is widely expected, the ECB will unveil today its own version of QE. Welcome to a dead-end where central banks may resemble Prometheus bound by chains made by his own hands!
As I wrote late last year we may be entering a historical year where the greenback and gold could be moving upwards at the same time, proving that gold is simply another form of money, especially when central bankers are in an intense race of cheapening currencies. The expectation is that the ECB may announce a QE program which until the end of 2016 will “pump” close to $1.3 trillion via purchases of third-party liabilities (a.k.a. bonds) in the hope that this will revive the EU economy.by
by Daniel Hannan
This will be the last time anti-globalisers protest at the World Economic Forum in Davos. From 2016, the ministers, chief executives, columnists and assorted quangocrats who gather at the Swiss resort won’t see so much as a stray dreadlock: eco-protesters say the meeting is no longer worth picketing.
You can see why they might feel conflicted. Davos is a place where powerful people pick up consultancies and directorships and international posts. Left-wingers rightly resent this.by
Soaking the rich has been a common theme in American politics. Even individuals like Thomas Jefferson and J.B. Say condoned placing a higher burden on the rich because “they” can afford it. It is also politically expedient; the rich are much fewer in numbers and have a smaller voting bloc that politicians can spare losing. Most people have what Mises called the “Fourier complex”, the envy for the wealth and better conditions of others. They would also rather distribute fairness though they may gain nothing from it, or even lose from it.by
by Richard Rahn
People are a bit more free and prosperous as a result of the work of Gary Becker, John Blundell, Leonard Liggio, Gordon Tullock and Henry Manne, all of whom passed away during the last eight months.
Henry Manne, dean emeritus of the George Mason University Law School, and one of the founders of the field of law and economics, died this past Saturday, at age 86. Most lawyers know little about economics, and as a result, many judges make unnecessarily harmful decisions.