Jubilee – Cancel Debt!

There has been a lot of good economic news lately, at least compared to the very bad news of a few years ago.  But that doesn’t mean that there aren’t bad things worth keeping a close eye on – especially those that predict future action by the Federal Reserve.

The velocity of the US Dollar – the number of times per year that money turns over through the economy – continues to drop without an end in sight.  This is a worrying sign because it suggests that most of the economic growth we are seeing comes from money that is being more or less printed by the Fed.  It also suggests that there will be another round of quantitative easing, or even more money printed.  There has to be a better way – and this wouldn’t be Barataria if we didn’t take a stab at how.

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The Real Power

Between the political conventions, the people running for the second most powerful office in the land have to stand down for a moment and let the Big Guy speak.  That would be Ben Bernanke, who delivered his annual address at the Jackson Hole conference today.  You want real power?  If being able to print $1.6T ain’t it, I don’t know what is.

The speech was highly anticipated because in the past the occasion was used to announce rounds of Quantitative Easing.  There was hope there would be a third round of it, which is to say more greenbacks flowing out into the economy hot off the Fed presses.  It didn’t happen.  Bernanke spoke instead about what’s gone wrong and what they’ve done to try to get things to start back up.

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