Tyler Cowen — The Complacent Class: The Self-Defeating Quest for the American Dream — Marginal Revolution University — Videos

Posted on April 2, 2017. Filed under: American History, Blogroll, Books, College Courses Online Videos, Economics, Family, government spending, history, media, Non-Fiction, People, Philosophy, Photos, Politics, Resources, Strategy, Success, Unemployment, Video, Wealth, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , , |

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The Complacent Class (Episode 1/5)

The New Era of Segregation (Episode 2/5)

American Stasis (Episode 3/5)

The Missing Men (Episode 4/5)

Up Next:

 The Great Reset (Episode 5/5)

What might happen if our stagnating economy faces a crisis?

Tyler Cowen, “The Complacent Class”

The American Dream and the Complacent Class

Tyler Cowen, “The Complacent Class”

Tyler Cowen: The Great Stagnation

Peter Thiel (full) | Conversations with Tyler

Be suspicious of stories | Tyler Cowen | TEDxMidAtlantic

TEDxEast – Tyler Cowen – The Great Stagnation

This video series accompanies Tyler Cowen’s new book The Complacent Class: The Self-Defeating Quest for the American Dream. The book is available in print and digital formats from Amazon, Barnes & Noble, and other book retailers.

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American Culture and Innovation

The pioneer spirit has defined American culture for hundreds of years. We’ve been willing to cross great distances, take big risks, and adapt to change in ways that have produced a dynamic economy. From Ben Franklin to Steve Jobs, innovation has been firmly rooted in American DNA and has positively changed the world.

What if that’s no longer true?

Over the next few weeks, join economist Tyler Cowen on an exploration of how we’re working harder than ever to avoid change and letting algorithms keep us a little too comfortable.

Want to stay in the loop as we release new episodes? Sign-up for updates in your inbox.

What’s Marginal Revolution University?

We believe economics has the power to change the way you see the world.

Many of us can recall that first teacher that changed the way we saw the world. We’re aiming to recreate that experience everyday for millions worldwide, for free.

Marginal Revolution University is a nonprofit, online education platform for learning economics. Founded in 2012 by George Mason University professors Tyler Cowen and Alex Tabarrok, we have a small team operating both in Arlington, VA and remotely around the globe. Through engaging, high production quality videos on a variety of economics topics, we support teachers, students, and lifelong learners. Our goal is to help learners better understand the economic way of thinking. Several complete courses are available for free at MRUniversity.com that can be used alone or as a supplement to a traditional course.

We offer a full course on Principles of Microeconomics and are currently releasing Principles of Macroeconomics.

All of our materials are free to use in and out of the classroom.

Questions? Comments? Drop us a note at support@mruniversity.com.

Up Next:

5. The Great Reset

What might happen if our stagnating economy faces a crisis?

Looking for more like this? Check out some of our other popular videos:

“Tyler Cowen’s blog, Marginal Revolution, is the first thing I read every morning. And his brilliant new book, The Complacent Class, has been on my nightstand after I devoured it in one sitting. I am at round-the-clock Cowen saturation right now.” – Malcolm Gladwell

Tyler Cowen on…

1. The Complacent Class

The Complacent Class by Tyler Cowen
Econ Duel: Will Machines Take Our Jobs?
Econ Duel: Will Machines Take Our Jobs?

This video series accompanies Tyler Cowen’s new book The Complacent Class: The Self-Defeating Quest for the American Dream. The book is available in print and digital formats from Amazon, Barnes & Noble, and other book retailers.

2. The New Era of Segregation

3. American Stasis

Tyler Cowen

From Wikipedia, the free encyclopedia
Tyler Cowen
Tyler Cowen 1.jpg
Born January 21, 1962 (age 55)
Bergen County, New Jersey, USA
Nationality American
Field Cultural economics
School or
tradition
Neoclassical economics
Influences Chicago School
Thomas Schelling
Carl Menger

Tyler Cowen (/ˈk.ən/; born January 21, 1962) is an American economist, philosopher, and writer, who is a professor at George Mason University, where he holds the Holbert C. Harris Chair of economics. He hosts a popular economics blog, Marginal Revolution, together with his co-author, Alex Tabarrok. Cowen and Tabarrok have also started the website Marginal Revolution University, a venture in online education.

Cowen writes the “Economic Scene” column for the New York Times, and since July 2016 has been a regular opinion columnist at Bloomberg View.[1] He also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly. He serves as general director of George Mason’s Mercatus Center, a university research center that focuses on the market economy.

In February 2011, Cowen received a nomination as one of the most influential economists in the last decade in a survey by The Economist.[2] He was ranked #72 among the “Top 100 Global Thinkers” in 2011 by Foreign Policy Magazine “for finding markets in everything.”[3]

Education and personal life

Cowen was born in Bergen County,[4] New Jersey. At 15, he became the youngest ever New Jersey state chess champion.[5][6]

He graduated from George Mason University with a bachelor of science degree in economics in 1983 and received his PhD in economics from Harvard University in 1987 with his thesis titled Essays in the theory of welfare economics. At Harvard, he was mentored by game theorist Thomas Schelling, the 2005 recipient of the Nobel Prize in Economics. He is married to Natasha Cowen, a lawyer.

Writings

Culture

The Los Angeles Times has described Cowen as “a man who can talk about Haitian voodoo flags, Iranian cinema, Hong Kong cuisine, Abstract Expressionism, Zairian music and Mexican folk art with seemingly equal facility.”[7] One of Cowen’s primary research interests is the economics of culture. He has written books on fame (What Price Fame?), art (In Praise of Commercial Culture), and cultural trade (Creative Destruction: How Globalization is Changing the World’s Cultures). In Markets and Cultural Voices, he relays how globalization is changing the world of three Mexican amate painters. Cowen argues that free markets change culture for the better, allowing them to evolve into something more people want. Other books include Public Goods and Market Failures, The Theory of Market Failure, Explorations in the New Monetary Economics, Risk and Business Cycles, Economic Welfare, and New Theories of Market Failure.

Recent books

Cowen followed the controversial success of his The Great Stagnation with An Economist Gets Lunch: New Rules for Everyday Foodies, “taking on food with equally provocative ideas.”[8]

The Great Stagnation: How America Ate All The Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better is a short, 15,000-word, take on the United States’ recent economic trajectory released in January 2011. Create Your Own Economy: The Path to Prosperity in a Disordered World was released in July 2009 (and rereleased in 2010, with the new title The Age of the Infovore: Succeeding in the Information Economy) and received favorable reviews from critics including Matthew Yglesias and Tim Harford.

In 2013, he published Average is Over, on the future of modern economies.

HIs most recent book, The Complacent Class: The Self-Defeating Quest for the American Dream (St. Martins Press, February 2017) discusses how the change that has moved America forward has stopped. According to Malcolm Gladwell, “His brilliant new book…has been on my nightstand after I devoured it in one sitting. I am at round-the-clock Cowen saturation right now.”

New York Times columns

Cowen’s New York Times columns cover a wide range of issues, such as the 2008 financial crisis: “Too Few Regulations? No, Just Ineffective Ones”.

Dining guide

His dining guide for the DC area, “Tyler Cowen’s Ethnic Dining Guide,” was reprinted in the Food section of the Washington Post.

Political philosophy

Cowen has written papers in political philosophy and ethics: for example, he co-wrote a paper with the philosopher Derek Parfit, arguing against the social discount rate.[9] A recent paper has argued that the epistemic problem fails to refute consequentialist forms of argument.[10] Cowen has been described as a “libertarian bargainer,” a moderate libertarian[clarification needed] who can influence practical policy making.[11] In a 2007 article entitled “The Paradox of Libertarianism,” Cowen argued that libertarians “should embrace a world with growing wealth, growing positive liberty, and yes, growing government. We don’t have to favor the growth in government per se, but we do need to recognize that sometimes it is a package deal.”

Cowen endorsed bailouts in a March 2, 2009 column in the New York Times.[12]

In 2012, David Brooks called Cowen one of the most influential bloggers on the right, writing that he is among those who “start from broadly libertarian premises but do not apply them in a doctrinaire way.”[13]

In an August 2014 blog post, Cowen wrote, “Just to summarize, I generally favor much more immigration but not open borders, I am a liberal on most but not all social issues, and I am market-oriented on economic issues. On most current foreign policy issues I am genuinely agnostic as to what exactly we should do but skeptical that we are doing the right thing at the moment. I don’t like voting for either party or for third parties.”[14]

Attack

On March 26, 2014, Cowen was attacked while teaching “Law and Literature” in his classroom by Jonathan Pendleton, who tried to perform a “citizen’s arrest” of the professor and then pepper sprayed him.[15][16][17] A bystander intervened and Pendelton was detained and arrested shortly after by police. Cowen and his students reportedly suffered no lasting injuries. Pendelton reportedly believed that Cowen had “controlled his mind at a distance” and sexually harassed him.[17]

Publications

Books

Select journal articles

Select articles

References

  1. Jump up^ https://www.bloomberg.com/view/contributors/AS6n2t3d_iA/tyler-cowen
  2. Jump up^ “Economics’ most influential people”. Economist.com. February 1, 2011. Retrieved 2012-06-30.
  3. Jump up^ “The FP Top 100 Global Thinkers (#72 Tyler Cowan:For finding markets in everything)”. Foreign Policy. December 2011. Retrieved March 21, 2012.
  4. Jump up^ “Correction: Tyler Cowen”. Financial Times. London: Pearson. 29 December 2012. Retrieved 1 February 2014.
  5. Jump up^ “Interview with the Former “Youngest New Jersey Chess Champion,” Tyler Cowen”. Kenilworthchessclub.org. 2006-09-08. Retrieved 2012-06-30.
  6. Jump up^ New Jersey State Champions 1946 – Present New Jersey State Chess Federation, Official Site
  7. Jump up^ The joy of thinking globally, February 7, 2003, Daniel Akst, Los Angeles Times
  8. Jump up^ Cowen, Tyler (2012-04-12). “Penny Pleasance in The New York Journal of Books”. Nyjournalofbooks.com. Retrieved 2012-06-30.
  9. Jump up^ ‘Against the social discount rate’, Derek Parfit and Tyler Cowen, in Peter Laslett & James S. Fishkin (eds.) Justice between age groups and generations, Yale University Press: New Haven, 1992, pp. 144–161.
  10. Jump up^ The Epistemic Problem Does Not Refute Consequentialism, Tyler Cowen, Utilitas (2006), 18: 383–399
  11. Jump up^ Klein, Daniel B.Mere Libertarianism: Blending Hayek and Rothbard“. Reason Papers. Vol. 27: Fall 2004.
  12. Jump up^ Cowen, Tyler (March 1, 2009). “Message to Regulators: Bank Fix Needed Quickly”. New York Times.
  13. Jump up^ Brooks, David (2012-11-19). “The Conservative Future”. New York Times. Retrieved 28 November 2012.
  14. Jump up^ Cowen, Tyler (4 August 2014). “Matt Yglesias on Tyler Cowen”. Marginal Revolution. Retrieved 24 March 2017.
  15. Jump up^ Greenwood, Arin (2014-03-27). “Tyler Cowen Pepper Sprayed While Teaching Law School Class On Vigilantism”. Huffington Post.
  16. Jump up^ McNeal, Greg (2014-03-27). “Law Professor Pepper Sprayed During Class By Man Demanding A ‘Citizen’s Arrest'”. Forbes.
  17. ^ Jump up to:a b Weiner, Rachel (April 29, 2014). “Tyler Cowen’s attacker thought the professor was controlling his mind, Cowen testifies”. The Washington Post. Retrieved April 29, 2014.

External links

https://en.wikipedia.org/wiki/Tyler_Cowen

 

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Three Years Behind The Curve Too Late Federal Open Market Committee (FOMC) Increases Target Federal Funds Rate to .75-1.0% — Financial Repression of Savers Slowly Continues — Videos

Posted on March 15, 2017. Filed under: American History, Articles, Banking, Blogroll, Books, Business, College, Communications, Congress, conservatives, Constitution, Corruption, Crisis, Documentary, Economics, Education, Employment, Faith, Family, Federal Government, Federal Government Budget, Fiscal Policy, Food, Foreign Policy, Freedom, government, government spending, history, History of Economic Thought, Language, liberty, Life, Links, Literacy, Macroeconomics, media, Monetary Policy, Money, Movies, Non-Fiction, People, Philosophy, Photos, Police, Politics, Radio, Rants, Raves, Raymond Thomas Pronk, Sociology, Speech, Strategy, Television, Trade Policiy, Tutorials, Video, Water, Wealth, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , |

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Yellen Calms Fears Fed’s Policy Trigger Finger Is Getting Itchy

March 15, 2017, 1:00 PM CDT March 15, 2017, 5:02 PM CDT
  • Policy makers still project three total rate hikes for 2017
  • FOMC sticks with ‘gradual’ plan for removing accommodation

Fed Raises Benchmark Lending Rate a Quarter Point

Federal Reserve Chair Janet Yellen sought to reassure investors that the central bank’s latest interest-rate increase wasn’t a paradigm shift to a trigger-happy policy driven by fears of faster inflation.

Speaking to reporters after the Fed’s quarter percentage-point move on Wednesday, Yellen said the central bank was willing to tolerate inflation temporarily overshootingits 2 percent goal and that it intended to keep its policy accommodative for “some time.”

“The simple message is the economy’s doing well. We have confidence in the robustness of the economy and its resilience to shocks,” she said.

As a result, the Fed is sticking with its policy of gradually raising interest rates, Yellen said. In their first forecasts in three months, Fed policy makers penciled in two more quarter-point rate increases this year and three in 2018, unchanged from their projections in December.

Today’s decision “does not represent a reassessment of the economic outlook or of the appropriate course for monetary policy,” the Fed chief said.

Speculation of a more aggressive Fed had mounted in recent days after a host of central bank officials, including Yellen herself, went out of their way to telegraph to financial markets that a rate hike was imminent. The expectations were further fueled by news of rising inflation.

Stocks Advance

Stocks rose and bond yields fell as investors viewed the statement from the Federal Open Market Committee and Yellen’s remarks afterward as a sign that the Fed isn’t in a hurry to remove monetary stimulus. The FOMC raised the target range for the federal funds rate to 0.75 percent to 1 percent, as expected, but Yellen’s lack of urgency to snuff out inflation was a surprise.

R.J. Gallo, a fixed-income investment manager at Federated Investors in Pittsburgh, said the chorus of Fed speakers before this meeting led investors to expect a move up in the number of projected rate hikes this year, and even upgrades by Fed officials in the levels of inflation and growth they anticipated.

None of that materialized.

“You didn’t get any of those things,” Gallo said, which explains why Treasury yields quickly dropped after the Fed released the FOMC statement and a new set of economic projections. “The expectation that Fed was getting more hawkish had to come out of the market.”

The U.S. economy has mostly met the central bank’s goals of full employment and stable prices, and may get further support if President Donald Trump delivers promised fiscal stimulus. Investor and business confidence has soared since Trump won the presidency in November, buoyed by his vows to cut taxes, lift infrastructure spending and ease regulations.

Still, the data don’t show an economy that’s heating up rapidly — a point Yellen herself made after the third rate hike since the 2007-2009 recession ended. In fact, the economy may have “more room to run,” she said.

Stronger business and consumer confidence hasn’t yet translated into increased investment and spending, said Yellen.

“It’s uncertain just how much sentiment actually impacts spending decisions, and I wouldn’t say at this point that I have seen hard evidence of any change in spending decisions,” said the Fed Chair. “Most of the business people that we’ve talked to also have a wait-and-see attitude.”

Retail sales in February grew at the slowest pace since August, a government report showed earlier Wednesday. The Atlanta Fed’s model for GDP predicts an expansion of 0.9 percent in the first quarter, less than a third the pace Trump is aiming for.

Fiscal Stimulus

Asked about the potential for a fiscal boost, Yellen made clear the Fed is still waiting for more concrete policy plans to emerge from the Trump administration before adapting monetary policy in reaction.

“There is great uncertainty about the timing, the size and the character of policy changes that may be put in place,” Yellen said. “I don’t think that’s a decision or set of decisions that we need to make until we know more about what policy changes will go into effect.”

Yellen disputed suggestions that the Fed was on a collision course with the Trump administration over its plans to foster faster economic growth through tax cuts and deregulation. “We would welcome stronger economic growth in the context of price stability,” she said.

She said she had met Trump briefly and had gotten together a couple of times with Treasury Secretary Steven Mnuchin to discuss the economy and financial regulation.

Further underscoring their lack of urgency, Fed officials repeated a commitment to maintain their balance-sheet reinvestment policy until rate increases were well under way. Yellen said officials had discussed the process of reducing the balance sheet gradually, but had made no decisions and would continue to debate the topic.

Policy makers forecast inflation will reach 1.9 percent in the fourth quarter this year, and 2 percent in both 2018 and 2019, according to quarterly median estimates released with the FOMC statement. The Fed’s preferred measure of inflation rose 1.9 percent in the 12 months through January, just shy of its target.

Yellen pointed out, though, that core inflation continues to run somewhat further below 2 percent. That rate, which strips out food and energy costs, stood at 1.7 percent in January. The Fed’s new forecast for the core rate at the end of this year edged up to 1.9 percent, from 1.8 percent in December.

“The committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal,” the Fed said. Discussing the word symmetric in the statement, Yellen said during her press conference that the Fed was not shooting to push inflation over 2 percent but recognized that it could temporarily go above it. Two percent is a target, she reiterated, not a ceiling.

https://www.bloomberg.com/news/articles/2017-03-15/fed-raises-benchmark-rate-as-inflation-approaches-2-target

Changes in the federal funds rate will always affect the U.S. dollar. When the Federal Reserve increases the federal funds rate, it normally reduces inflationary pressure and works to appreciate the dollar.

Since June 2006, however, the Fed has maintained a federal funds rate of close to 0%. In the wake of the 2008 financial crisis, the federal funds rate fluctuated between 0-0.25%, and is now 0.75%.

The Fed used this monetary policy to help achieve maximum employment and stable prices. Now that the 2008 financial crisis has largely subsided, the Fed will look to increase interest rates to continue to achieve employment and to stabilize prices.

Inflation of the U.S. Dollar

The best way to achieve full employment and stable prices is to set the inflation rate of the dollar at 2%. In 2011, the Fed officially adopted a 2% annual increase in the price index for personal consumption expenditures as its target. When the economy is weak, inflation naturally falls; when the economy is strong, rising wages increase inflation. Keeping inflation at a growth rate of 2% helps the economy grow at a healthy rate.

Adjustments to the federal funds rate can also affect inflation in the United States. The Fed controls the economy by increasing interest rates when the economy is growing too fast. This encourages people to save more and spend less, reducing inflationary pressure. Conversely, when the economy is in a recession or growing too slowly, the Fed reduces interest rates to stimulate spending, which increases inflation.

During the 2008 financial crisis, the low federal funds rate should have increased inflation. Over this period, the federal funds rate was set near 0%, which encouraged spending and would normally increase inflation.

However, inflation is still well below the 2% target, which is contrary to the normal effects of low interest rates. The Fed cites one-off factors, such as falling oil prices and the strengthening dollar, as the reasons why inflation has remained low in a low interest environment.

The Fed believes that these factors will eventually fade and that inflation will increase above the target 2%. To prevent this eventual increase in inflation, hiking the federal funds rate reduces inflationary pressure and cause inflation of the dollar to remain around 2%.

Appreciation of the U.S. Dollar

Increases in the federal funds rate also result in a strengthening of the U.S. dollar. Other ways that the dollar can appreciate include increases in average wages and increases in overall consumption. However, although jobs are being created, wage rates are stagnant.

Without an increase in wage rates to go along with a strengthening job market, consumption won’t increase enough to sustain economic growth. Additionally, consumption remains subdued due to the fact that the labor force participation rate was close to its 35-year low in 2015. The Fed has kept interest rates low because a lower federal funds rate supports business expansions, which leads to more jobs and higher consumption. This has all worked to keep appreciation of the U.S. dollar low.

However, the U.S. is ahead of the other developed markets in terms of its economic recovery. Although the Fed raises rates cautiously, the U.S. could see higher interest rates before the other developed economies.

Overall, under normal economic conditions, increases in the federal funds rate reduce inflation and increase the appreciation of the U.S. dollar.

http://www.investopedia.com/articles/investing/101215/how-fed-fund-rate-hikes-affect-us-dollar.asp

Financial repression

From Wikipedia, the free encyclopedia
Not to be confused with economic repression, a type of political repression.

Financial repression refers to “policies that result in savers earning returns below the rate of inflation” in order to allow banks to “provide cheap loans to companies and governments, reducing the burden of repayments”.[1] It can be particularly effective at liquidating government debt denominated in domestic currency.[2] It can also lead to a large expansions in debt “to levels evoking comparisons with the excesses that generated Japan’s lost decade and the Asian financial crisis” in 1997.[1]

The term was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon[3][4] in order to “disparage growth-inhibiting policies in emerging markets“.

Mechanism

Financial repression consists of the following:[5]

  1. Explicit or indirect capping of interest rates, such as on government debt and deposit rates (e.g., Regulation Q).
  2. Government ownership or control of domestic banks and financial institutions with barriers that limit other institutions from entering the market.
  3. High reserve requirements.
  4. Creation or maintenance of a captive domestic market for government debt, achieved by requiring banks to hold government debt via capital requirements, or by prohibiting or disincentivising alternatives.
  5. Government restrictions on the transfer of assets abroad through the imposition of capital controls.

These measures allow governments to issue debt at lower interest rates. A low nominal interest rate can reduce debt servicing costs, while negative real interest rates erodes the real value of government debt.[5] Thus, financial repression is most successful in liquidating debts when accompanied by inflation and can be considered a form of taxation,[6] or alternatively a form of debasement.[7]

The size of the financial repression tax for 24 emerging markets from 1974 to 1987. Their results showed that financial repression exceeded 2% of GDP for seven countries, and greater than 3% for five countries. For five countries (India, Mexico, Pakistan, Sri Lanka, and Zimbabwe) it represented approximately 20% of tax revenue. In the case of Mexico financial repression was 6% of GDP, or 40% of tax revenue.[8]

Financial repression is categorized as “macroprudential regulation“—i.e., government efforts to “ensure the health of an entire financial system.[2]

Examples

After World War II

Financial repression “played an important role in reducing debt-to-GDP ratios after World War II” by keeping real interest rates for government debt below 1% for two-thirds of the time between 1945 and 1980, the United States was able to “inflate away” the large debt (122% of GDP) left over from the Great Depression and World War II.[2] In the UK, government debt declined from 216% of GDP in 1945 to 138% ten years later in 1955.[9]

China

China‘s economic growth has been attributed to financial repression thanks to “low returns on savings and the cheap loans that it makes possible”. This has allowed China to rely on savings-financed investments for economic growth. However, because low returns also dampens consumer spending, household expenditures account for “a smaller share of GDP in China than in any other major economy”.[1] However, as of December 2014, the People’s Bank of China “started to undo decades of financial repression” and the government now allows Chinese savers to collect up to a 3.3% return on one-year deposits. At China’s 1.6% inflation rate, this is a “high real-interest rate compared to other major economies”.[1]

After the 2008 economic recession

In a 2011 NBER working paper, Carmen Reinhart and Maria Belen Sbrancia speculate on a possible return by governments to this form of debt reduction in order to deal with high debt levels following the 2008 economic crisis.[5]

“To get access to capital, Austria has restricted capital flows to foreign subsidiaries in central and eastern Europe. Select pension funds have also been transferred to governments in France, Portugal, Ireland and Hungary, enabling them to re-allocate toward sovereign bonds.”[10]

Criticism

Critics[who?] argue that if this view was true, investors (i.e., capital-seeking parties) would be inclined to demand capital in large quantities and would be buying capital goods from this capital. This high demand for capital goods would certainly lead to inflation and thus the central banks would be forced to raise interest rates again. As a boom pepped by low interest rates fails to appear these days in industrialized countries, this is a sign that the low interest rates seem to be necessary to ensure an equilibrium on the capital market, thus to balance capital-supply—i.e., savers—on one side and capital-demand—i.e., investors and the government—on the other. This view argues that interest rates would be even lower if it were not for the high government debt ratio (i.e., capital demand from the government).

Free-market economists argue that financial repression crowds out private-sector investment, thus undermining growth. On the other hand, “postwar politicians clearly decided this was a price worth paying to cut debt and avoid outright default or draconian spending cuts. And the longer the gridlock over fiscal reform rumbles on, the greater the chance that ‘repression’ comes to be seen as the least of all evils”.[11]

Also, financial repression has been called a “stealth tax” that “rewards debtors and punishes savers—especially retirees” because their investments will no longer generate the expected return, which is income for retirees.[10][12] “One of the main goals of financial repression is to keep nominal interest rates lower than they would be in more competitive markets. Other things equal, this reduces the government’s interest expenses for a given stock of debt and contributes to deficit reduction. However, when financial repression produces negative real interest rates (nominal rates below the inflation rate), it reduces or liquidates existing debts and becomes the equivalent of a tax—a transfer from creditors (savers) to borrowers, including the government.”[2]

See also

Reform:

General:

References

  1. ^ Jump up to:a b c d “China Savers Prioritized Over Banks by PBOC”. Bloomberg. November 25, 2014.
  2. ^ Jump up to:a b c d Carmen M. Reinhart, Jacob F. Kirkegaard, and M. Belen Sbrancia, “Financial Repression Redux”, IMF Finance and Development, June 2011, p. 22-26
  3. Jump up^ Shaw, Edward S. Financial Deepening in Economic Development. New York: Oxford University Press, 1973
  4. Jump up^ McKinnon, Ronald I. Money and Capital in Economic Development. Washington, D.C.: Brookings Institution, 1973
  5. ^ Jump up to:a b c Carmen M. Reinhart and M. Belen Sbrancia, “The Liquidation of Government Debt”, IMF, 2011, p. 19
  6. Jump up^ Reinhart, Carmen M. and Rogoff, Kenneth S., This Time is Different: Eight Centuries of Financial Folly. Princeton and Oxford: Princeton University Press, 2008, p. 143
  7. Jump up^ Bill Gross, “The Caine Mutiny Part 2”, PIMCO
  8. Jump up^ Giovannini, Alberto and de Melo, Martha, “Government Revenue from Financial Repression”, The American Economic Review, Vol. 83, No. 4 Sep. 1993 (pp. 953-963)
  9. Jump up^ “The great repression”. The Economist. 16 June 2011.
  10. ^ Jump up to:a b “Financial Repression 101”. Allianz Global Investors. Retrieved 2 December 2014.
  11. Jump up^ Gillian Tett, “Policymakers learn a new and alarming catchphrase”, Financial Times, May 9, 2011
  12. Jump up^ Amerman, Daniel (September 12, 2011). “The 2nd Edge of Modern Financial Repression: Manipulating Inflation Indexes to Steal from Retirees & Public Wor

https://en.wikipedia.org/wiki/Financial_repression

Federal funds rate

From Wikipedia, the free encyclopedia

10 year treasury compared to the Federal Funds Rate

Federal funds rate and capacity utilization in manufacturing.

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions’ reserve requirements. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.[1][2]

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

The Federal Reserve uses open market operations to influence the supply of money in the U.S. economy[3] to make the federal funds effective rate follow the federal funds target rate.

Mechanism

Financial Institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10%[4] of the total value of the bank’s demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accounts, NOWs, and other deposits that can be used to make payments) the reserve requirement in 2007-2008 was 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The nominal rate is a target set by the governors of the Federal Reserve, which they enforce by open market operations and adjusting the interest paid on required and excess reserve balances. That nominal rate is almost always what is meant by the media referring to the Federal Reserve “changing interest rates.” The actual federal funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it does set the specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting’s agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media.

Applications

Interbank borrowing is essentially a way for banks to quickly raise money. For example, a bank may want to finance a major industrial effort but may not have the time to wait for deposits or interest (on loan payments) to come in. In such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate.

Raising the federal funds rate will dissuade banks from taking out such inter-bank loans, which in turn will make cash that much harder to procure. Conversely, dropping the interest rates will encourage banks to borrow money and therefore invest more freely.[5] This interest rate is used as a regulatory tool to control how freely the U.S. economy operates.

By setting a higher discount rate the Federal Bank discourages banks from requisitioning funds from the Federal Bank, yet positions itself as a lender of last resort.

Comparison with LIBOR

Though the London Interbank Offered Rate (LIBOR) and the federal funds rate are concerned with the same action, i.e. interbank loans, they are distinct from one another, as follows:

  • The target federal funds rate is a target interest rate that is set by the FOMC for implementing U.S. monetary policies.
  • The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies’ securities).[6]
  • LIBOR is based on a questionnaire where a selection of banks guess the rates at which they could borrow money from other banks.
  • LIBOR may or may not be used to derive business terms. It is not fixed beforehand and is not meant to have macroeconomic ramifications.[7]

Predictions by the market

Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market. The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market’s expectations of future Fed policy changes. Based on CME Group 30-Day Fed Fund futures prices, which have long been used to express the market’s views on the likelihood of changes in U.S. monetary policy, the CME Group FedWatch tool allows market participants to view the probability of an upcoming Fed Rate hike. One set of such implied probabilities is published by the Cleveland Fed.

Historical rates

As of December 16, 2008, the most recent change the FOMC has made to the funds target rate is a 75 to 100 basis point cut from 1.0% to a range of zero to 0.25%. According to Jack A. Ablin, chief investment officer at Harris Private Bank, one reason for this unprecedented move of having a range, rather than a specific rate, was because a rate of 0% could have had problematic implications for money market funds, whose fees could then outpace yields.[8] This followed the 50 basis point cut on October 29, 2008, and the unusually large 75 basis point cut made during a special January 22, 2008 meeting, as well as a 50 basis point cut on January 30, 2008, a 75 basis point cut on March 18, 2008, and a 50 basis point cut on October 8, 2008.[9]

Federal funds rate history and recessions.png

Explanation of federal funds rate decisions

When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, price normally falls. The price here is the interest rate (cost of money) and specifically refers to the Federal Funds Rate. Conversely, when the Committee wishes to increase the Fed Funds Rate, they will instruct the Desk Manager to sell government securities, thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply. When supply is taken away and everything else remains constant, price (or in this case interest rates) will normally rise.[10]

The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth. In fact, the Committee’s lowering has recently predated recessions,[9] in order to stimulate the economy and cushion the fall. Reducing the Fed Funds Rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.

The charts linked below show the relation between S&P 500 and interest rates.

  • July 13, 1990 — Sept 4, 1992: 8.00%–3.00% (Includes 1990–1991 recession)[11][12]
  • Feb 1, 1995 — Nov 17, 1998: 6.00–4.75 [13][14][15]
  • May 16, 2000 — June 25, 2003: 6.50–1.00 (Includes 2001 recession)[16][17][18]
  • June 29, 2006 — (Oct. 29 2008): 5.25–1.00[19]
  • Dec 16, 2008 — 0.0–0.25[20]
  • Dec 16, 2015 — 0.25-0.50[21]
  • Dec 14, 2016 — 0.50-0.75[22]
  • Mar 15, 2017 — 0.75-1.00[23]

Bill Gross of PIMCO suggested that in the prior 15 years ending in 2007, in each instance where the fed funds rate was higher than the nominal GDP growth rate, assets such as stocks and/or housing fell.[24]

See also

References

  1. Jump up^ “Fedpoints: Federal Funds”. Federal Reserve Bank of New York. August 2007. Retrieved 2 October 2011.
  2. Jump up^ “The Implementation of Monetary Policy”. The Federal Reserve System: Purposes & Functions (PDF). Washington, D.C.: Federal Reserve Board. 24 August 2011. p. 4. Retrieved 2 October 2011.
  3. Jump up^ “Monetary Policy, Open Market Operations”. Federal Reserve Bank. 2008-01-30. Retrieved 2008-01-30.
  4. Jump up^ “Reserve Requirements”. Board of Governors of The Federal Reserve System. December 16, 2015.
  5. Jump up^ “Fed funds rate”. Bankrate, Inc. March 2016.
  6. Jump up^ Cheryl L. Edwards (November 1997). Gerard Sinzdak. “Open Market Operations in the 1990s” (PDF). Federal Reserve Bulletin (PDF).
  7. Jump up^ “BBA LIBOR – Frequently asked questions”. British Bankers’ Association. March 21, 2006. Archived from the original on 2007-02-16.
  8. Jump up^ “4:56 p.m. US-Closing Stocks”. Associated Press. December 16, 2008.[dead link]
  9. ^ Jump up to:a b “Historical Changes of the Target Federal Funds and Discount Rates, 1971 to present”. New York Federal Reserve Branch. February 19, 2010. Archived from the original on December 21, 2008.
  10. Jump up^ David Waring (2008-02-19). “An Explanation of How The Fed Moves Interest Rates”. InformedTrades.com. Archived from the original on 2015-05-05. Retrieved 2009-07-20.
  11. Jump up^ “$SPX 1990-06-12 1992-10-04 (rate drop chart)”. StockCharts.com.
  12. Jump up^ “$SPX 1992-08-04 1995-03-01 (rate rise chart)”. StockCharts.com.
  13. Jump up^ “$SPX 1995-01-01 1997-01-01 (rate drop chart)”. StockCharts.com.
  14. Jump up^ “$SPX 1996-12-01 1998-10-17 (rate drop chart)”. StockCharts.com.
  15. Jump up^ “$SPX 1998-09-17 2000-06-16 (rate rise chart)”. StockCharts.com.
  16. Jump up^ “$SPX 2000-04-16 2002-01-01 (rate drop chart)”. StockCharts.com.
  17. Jump up^ “$SPX 2002-01-01 2003-07-25 (rate drop chart)”. StockCharts.com.
  18. Jump up^ “$SPX 2003-06-25 2006-06-29 (rate rise chart)”. StockCharts.com.
  19. Jump up^ “$SPX 2006-06-29 2008-06-01 (rate drop chart)”. StockCharts.com.
  20. Jump up^ “Press Release”. Board of Governors of The Federal Reserve System. December 16, 2008.
  21. Jump up^ “Open Market Operations”. Board of Governors of The Federal Reserve System. December 16, 2015.
  22. Jump up^ “Decisions Regarding Monetary Policy Implementation”. Board of Governors of The Federal Reserve System.
  23. Jump up^ Cox, Jeff (2017-03-15). “Fed raises rates at March meeting”. CNBC. Retrieved 2017-03-15.
  24. Jump up^ Shaw, Richard (January 7, 2007). “The Bond Yield Curve as an Economic Crystal Ball”. Retrieved 3 April 2011.

External links

https://en.wikipedia.org/wiki/Federal_funds_rate

Monetary policy of the United States

From Wikipedia, the free encyclopedia
  (Redirected from U.S. monetary policy)
United States M2 money supply
% change in money supply
Money supply changes monthly basis

Monetary policy concerns the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply.

In the United States, the Federal Reserve is in charge of monetary policy, and implements it primarily by performing operations that influence short-term interest rates.

Money supply[edit]

Main article: Money supply

The money supply has different components, generally broken down into “narrow” and “broad” money, reflecting the different degrees of liquidity (‘spendability’) of each different type, as broader forms of money can be converted into narrow forms of money (or may be readily accepted as money by others, such as personal checks).[1]

For example, demand deposits are technically promises to pay on demand, while savings deposits are promises to pay subject to some withdrawal restrictions, and Certificates of Deposit are promises to pay only at certain specified dates; each can be converted into money, but “narrow” forms of money can be converted more readily. The Federal Reserve directly controls only the most narrow form of money, physical cash outstanding along with the reserves of banks throughout the country (known as M0 or the monetary base); the Federal Reserve indirectly influences the supply of other types of money.[1]

Broad money includes money held in deposit balances in banks and other forms created in the financial system. Basic economics also teaches that the money supply shrinks when loans are repaid;[2][3] however, the money supply will not necessarily decrease depending on the creation of new loans and other effects. Other than loans, investment activities of commercial banks and the Federal Reserve also increase and decrease the money supply.[4] Discussion of “money” often confuses the different measures and may lead to misguided commentary on monetary policy and misunderstandings of policy discussions.[5]

Structure of modern US institutions[edit]

Federal Reserve[edit]

Monetary policy in the US is determined and implemented by the US Federal Reserve System, commonly referred to as the Federal Reserve. Established in 1913 by the Federal Reserve Act to provide central banking functions,[6] the Federal Reserve System is a quasi-public institution. Ostensibly, the Federal Reserve Banks are 12 private banking corporations;[7][8][9] they are independent in their day-to-day operations, but legislatively accountable to Congress through the auspices of Federal Reserve Board of Governors.

The Board of Governors is an independent governmental agency consisting of seven officials and their support staff of over 1800 employees headquartered in Washington, D.C.[10] It is independent in the sense that the Board currently operates without official obligation to accept the requests or advice of any elected official with regard to actions on the money supply,[11]and its methods of funding also preserve independence. The Governors are nominated by the President of the United States, and nominations must be confirmed by the U.S. Senate.[12]

The presidents of the Federal Reserve Banks are nominated by each bank’s respective Board of Directors, but must also be approved by the Board of Governors of the Federal Reserve. The Chairman of the Federal Reserve Board is generally considered to have the most important position, followed by the president of the Federal Reserve Bank of New York.[12] The Federal Reserve System is primarily funded by interest collected on their portfolio of securities from the US Treasury, and the Fed has broad discretion in drafting its own budget,[13] but, historically, nearly all the interest the Federal Reserve collects is rebated to the government each year.[14]

The Federal Reserve has three main mechanisms for manipulating the money supply. It can buy or sell treasury securities. Selling securities has the effect of reducing the monetary base (because it accepts money in return for purchase of securities), taking that money out of circulation. Purchasing treasury securities increases the monetary base (because it pays out hard currency in exchange for accepting securities). Secondly, the discount rate can be changed. And finally, the Federal Reserve can adjust the reserve requirement, which can affect the money multiplier; the reserve requirement is adjusted only infrequently, and was last adjusted in 1992.[15]

In practice, the Federal Reserve uses open market operations to influence short-term interest rates, which is the primary tool of monetary policy. The federal funds rate, for which the Federal Open Market Committee announces a target on a regular basis, reflects one of the key rates for interbank lending. Open market operations change the supply of reserve balances, and the federal funds rate is sensitive to these operations.[16]

In theory, the Federal Reserve has unlimited capacity to influence this rate, and although the federal funds rate is set by banks borrowing and lending funds to each other, the federal funds rate generally stays within a limited range above and below the target (as participants are aware of the Fed’s power to influence this rate).

Assuming a closed economy, where foreign capital or trade does not affect the money supply, when money supply increases, interest rates go down. Businesses and consumers have a lower cost of capital and can increase spending and capital improvement projects. This encourages short-term growth. Conversely, when the money supply falls, interest rates go up, increasing the cost of capital and leading to more conservative spending and investment. The Federal reserve increases interest rates to combat Inflation.

U.S. Treasury[edit]

Private commercial banks[edit]

When money is deposited in a bank, it can then be lent out to another person. If the initial deposit was $100 and the bank lends out $100 to another customer the money supply has increased by $100. However, because the depositor can ask for the money back, banks have to maintain minimum reserves to service customer needs. If the reserve requirement is 10% then, in the earlier example, the bank can lend $90 and thus the money supply increases by only $90. The reserve requirement therefore acts as a limit on this multiplier effect. Because the reserve requirement only applies to the more narrow forms of money creation (corresponding to M1), but does not apply to certain types of deposits (such as time deposits), reserve requirements play a limited role in monetary policy.[17]

Money creation[edit]

Main article: Money creation

Currently, the US government maintains over US$800 billion in cash money (primarily Federal Reserve Notes) in circulation throughout the world,[18][19] up from a sum of less than $30 billion in 1959. Below is an outline of the process which is currently used to control the amount of money in the economy. The amount of money in circulation generally increases to accommodate money demanded by the growth of the country’s production. The process of money creation usually goes as follows:

  1. Banks go through their daily transactions. Of the total money deposited at banks, significant and predictable proportions often remain deposited, and may be referred to as “core deposits.” Banks use the bulk of “non-moving” money (their stable or “core” deposit base) by loaning it out.[20] Banks have a legal obligation to keep a certain fraction of bank deposit money on-hand at all times.[21]
  2. In order to raise additional money to cover excess spending, Congress increases the size of the National Debt by issuing securities typically in the form of a Treasury Bond[22] (see United States Treasury security). It offers the Treasury security for sale, and someone pays cash to the government in exchange. Banks are often the purchasers of these securities, and these securities currently play a crucial role in the process.
  3. The 12-person Federal Open Market Committee, which consists of the heads of the Federal Reserve System (the seven Federal governors and five bank presidents), meets eight times a year to determine how they would like to influence the economy.[23] They create a plan called the country’s “monetary policy” which sets targets for things such as interest rates.[24]
  4. Every business day, the Federal Reserve System engages in Open market operations.[25] If the Federal Reserve wants to increase the money supply, it will buy securities (such as U.S. Treasury Bonds) anonymously from banks in exchange for dollars. If the Federal Reserve wants to decrease the money supply, it will sell securities to the banks in exchange for dollars, taking those dollars out of circulation.[26][27] When the Federal Reserve makes a purchase, it credits the seller’s reserve account (with the Federal Reserve). The money that it deposits into the seller’s account is not transferred from any existing funds, therefore it is at this point that the Federal Reserve has created High-powered money.
  5. By means of open market operations, the Federal Reserve affects the free reserves of commercial banks in the country.[28] Anna Schwartz explains that “if the Federal Reserve increases reserves, a single bank can make loans up to the amount of its excess reserves, creating an equal amount of deposits”.[26][27][29]
  6. Since banks have more free reserves, they may loan out the money, because holding the money would amount to accepting the cost of foregone interest[28][30] When a loan is granted, a person is generally granted the money by adding to the balance on their bank account.[31]
  7. This is how the Federal Reserve’s high-powered money is multiplied into a larger amount of broad money, through bank loans; as written in a particular case study, “as banks increase or decrease loans, the nation’s (broad) money supply increases or decreases.”[3] Once granted these additional funds, the recipient has the option to withdraw physical currency (dollar bills and coins) from the bank, which will reduce the amount of money available for further on-lending (and money creation) in the banking system.[32]
  8. In many cases, account-holders will request cash withdrawals, so banks must keep a supply of cash handy. When they believe they need more cash than they have on hand, banks can make requests for cash with the Federal Reserve. In turn, the Federal Reserve examines these requests and places an order for printed money with the US Treasury Department.[33] The Treasury Department sends these requests to the Bureau of Engraving and Printing (to make dollar bills) and the Bureau of the Mint (to stamp the coins).
  9. The U.S. Treasury sells this newly printed money to the Federal Reserve for the cost of printing.[citation needed] This is about 6 cents per bill for any denomination.[34] Aside from printing costs, the Federal Reserve must pledge collateral (typically government securities such as Treasury bonds) to put new money, which does not replace old notes, into circulation.[35]This printed cash can then be distributed to banks, as needed.

Though the Federal Reserve authorizes and distributes the currency printed by the Treasury (the primary component of the narrow monetary base), the broad money supply is primarily created by commercial banks through the money multiplier mechanism.[29][31][36][37] One textbook summarizes the process as follows:

“The Fed” controls the money supply in the United States by controlling the amount of loans made by commercial banks. New loans are usually in the form of increased checking account balances, and since checkable deposits are part of the money supply, the money supply increases when new loans are made …[38]

This type of money is convertible into cash when depositors request cash withdrawals, which will require banks to limit or reduce their lending.[39][32] The vast majority of the broad money supply throughout the world represents current outstanding loans of banks to various debtors.[38][40][41] A very small amount of U.S. currency still exists as “United States Notes“, which have no meaningful economic difference from Federal Reserve notes in their usage, although they departed significantly in their method of issuance into circulation. The currency distributed by the Federal Reserve has been given the official designation of “Federal Reserve Notes.”[42]

Significant effects[edit]

Main article: Monetary policy

In 2005, the Federal Reserve held approximately 9% of the national debt[43] as assets against the liability of printed money. In previous periods, the Federal Reserve has used other debt instruments, such as debt securities issued by private corporations. During periods when the national debt of the United States has declined significantly (such as happened in fiscal years 1999 and 2000), monetary policy and financial markets experts have studied the practical implications of having “too little” government debt: both the Federal Reserve and financial markets use the price information, yield curve and the so-called risk free rate extensively.[44]

Experts are hopeful that other assets could take the place of National Debt as the base asset to back Federal Reserve notes, and Alan Greenspan, long the head of the Federal Reserve, has been quoted as saying, “I am confident that U.S. financial markets, which are the most innovative and efficient in the world, can readily adapt to a paydown of Treasury debt by creating private alternatives with many of the attributes that market participants value in Treasury securities.”[45] In principle, the government could still issue debt securities in significant quantities while having no net debt, and significant quantities of government debt securities are also held by other government agencies.

Although the U.S. government receives income overall from seigniorage, there are costs associated with maintaining the money supply.[41][46] Leading ecological economist and steady-state theorist Herman Daly, claims that “over 95% of our [broad] money supply [in the United States] is created by the private banking system (demand deposits) and bears interest as a condition of its existence,”[41] a conclusion drawn from the Federal Reserve’s ultimate dependence on increased activity in fractional reserve lending when it exercises open market operations.[47]Economist Eric Miller criticizes Daly’s logic because money is created in the banking system in response to demand for the money,[48] which justifies cost.[citation needed]

Thus, use of expansionary open market operations typically generates more debt in the private sector of society (in the form of additional bank deposits).[49] The private banking system charges interest to borrowers as a cost to borrow the money.[3][31][50] The interest costs are borne by those that have borrowed,[3][31] and without this borrowing, open market operations would be unsuccessful in maintaining the broad money supply,[30] though alternative implementations of monetary policy could be used. Depositors of funds in the banking system are paid interest on their savings (or provided other services, such as checking account privileges or physical security for their “cash”), as compensation for “lending” their funds to the bank.

Increases (or contractions) of the money supply corresponds to growth (or contraction) in interest-bearing debt in the country.[3][30][41] The concepts involved in monetary policy may be widely misunderstood in the general public, as evidenced by the volume of literature on topics such as “Federal Reserve conspiracy” and “Federal Reserve fraud.”[51]

Uncertainties

A few of the uncertainties involved in monetary policy decision making are described by the federal reserve:[52]

  • While these policy choices seem reasonably straightforward, monetary policy makers routinely face certain notable uncertainties. First, the actual position of the economy and growth in aggregate demand at any time are only partially known, as key information on spending, production, and prices becomes available only with a lag. Therefore, policy makers must rely on estimates of these economic variables when assessing the appropriate course of policy, aware that they could act on the basis of misleading information. Second, exactly how a given adjustment in the federal funds rate will affect growth in aggregate demand—in terms of both the overall magnitude and the timing of its impact—is never certain. Economic models can provide rules of thumb for how the economy will respond, but these rules of thumb are subject to statistical error. Third, the growth in aggregate supply, often called the growth in potential output, cannot be measured with certainty.
  • In practice, as previously noted, monetary policy makers do not have up-to-the-minute information on the state of the economy and prices. Useful information is limited not only by lags in the collection and availability of key data but also by later revisions, which can alter the picture considerably. Therefore, although monetary policy makers will eventually be able to offset the effects that adverse demand shocks have on the economy, it will be some time before the shock is fully recognized and—given the lag between a policy action and the effect of the action on aggregate demand—an even longer time before it is countered. Add to this the uncertainty about how the economy will respond to an easing or tightening of policy of a given magnitude, and it is not hard to see how the economy and prices can depart from a desired path for a period of time.
  • The statutory goals of maximum employment and stable prices are easier to achieve if the public understands those goals and believes that the Federal Reserve will take effective measures to achieve them.
  • Although the goals of monetary policy are clearly spelled out in law, the means to achieve those goals are not. Changes in the FOMC’s target federal funds rate take some time to affect the economy and prices, and it is often far from obvious whether a selected level of the federal funds rate will achieve those goals.

Opinions of the Federal Reserve

The Federal Reserve is lauded by some economists, while being the target of scathing criticism by other economists, legislators, and sometimes members of the general public. The former Chairman of the Federal Reserve Board, Ben Bernanke, is one of the leading academic critics of the Federal Reserve’s policies during the Great Depression.[53]

Achievements

One of the functions of a central bank is to facilitate the transfer of funds through the economy, and the Federal Reserve System is largely responsible for the efficiency in the banking sector. There have also been specific instances which put the Federal Reserve in the spotlight of public attention. For instance, after the stock market crash in 1987, the actions of the Fed are generally believed to have aided in recovery. Also, the Federal Reserve is credited for easing tensions in the business sector with the reassurances given following the 9/11 terrorist attacks on the United States.[54]

Criticisms

The Federal Reserve has been the target of various criticisms, involving: accountability, effectiveness, opacity, inadequate banking regulation, and potential market distortion. Federal Reserve policy has also been criticized for directly and indirectly benefiting large banks instead of consumers. For example, regarding the Federal Reserve’s response to the 2007–2010 financial crisis, Nobel laureate Joseph Stiglitz explained how the U.S. Federal Reserve was implementing another monetary policy —creating currency— as a method to combat the liquidity trap.[55]

By creating $600 billion and inserting this directly into banks the Federal Reserve intended to spur banks to finance more domestic loans and refinance mortgages. However, banks instead were spending the money in more profitable areas by investing internationally in emerging markets. Banks were also investing in foreign currencies which Stiglitz and others point out may lead to currency wars while China redirects its currency holdings away from the United States.[56]

Auditing

The Federal Reserve is subject to different requirements for transparency and audits than other government agencies, which its supporters claim is another element of the Fed’s independence. Although the Federal Reserve has been required by law to publish independently audited financial statements since 1999, the Federal Reserve is not audited in the same way as other government agencies. Some confusion can arise because there are many types of audits, including: investigative or fraud audits; and financial audits, which are audits of accounting statements; there are also compliance, operational, and information system audits.

The Federal Reserve’s annual financial statements are audited by an outside auditor. Similar to other government agencies, the Federal Reserve maintains an Office of the Inspector General, whose mandate includes conducting and supervising “independent and objective audits, investigations, inspections, evaluations, and other reviews of Board programs and operations.”[57] The Inspector General’s audits and reviews are available on the Federal Reserve’s website.[58][59]

The Government Accountability Office (GAO) has the power to conduct audits, subject to certain areas of operations that are excluded from GAO audits; other areas may be audited at specific Congressional request, and have included bank supervision, government securities activities, and payment system activities.[60][61] The GAO is specifically restricted any authority over monetary policy transactions;[60] the New York Times reported in 1989 that “such transactions are now shielded from outside audit, although the Fed influences interest rates through the purchase of hundreds of billions of dollars in Treasury securities.”[62] As mentioned above, it was in 1999 that the law governing the Federal Reserve was amended to formalize the already-existing annual practice of ordering independent audits of financial statements for the Federal Reserve Banks and the Board;[63] the GAO’s restrictions on auditing monetary policy continued, however.[61]

Congressional oversight on monetary policy operations, foreign transactions, and the FOMC operations is exercised through the requirement for reports and through semi-annual monetary policy hearings.[61] Scholars have conceded that the hearings did not prove an effective means of increasing oversight of the Federal Reserve, perhaps because “Congresspersons prefer to bash an autonomous and secretive Fed for economic misfortune rather than to share the responsibility for that misfortune with a fully accountable Central Bank,” although the Federal Reserve has also consistently lobbied to maintain its independence and freedom of operation.[64]

Fulfillment of wider economic goals

By law, the goals of the Fed’s monetary policy are: high employment, sustainable growth, and stable prices.[65]

Critics say that monetary policy in the United States has not achieved consistent success in meeting the goals that have been delegated to the Federal Reserve System by Congress. Congress began to review more options with regard to macroeconomic influence beginning in 1946 (after World War II), with the Federal Reserve receiving specific mandates in 1977 (after the country suffered a period of stagflation).

Throughout the period of the Federal Reserve following the mandates, the relative weight given to each of these goals has changed, depending on political developments.[citation needed] In particular, the theories of Keynesianism and monetarism have had great influence on both the theory and implementation of monetary policy, and the “prevailing wisdom” or consensus view of the economic and financial communities has changed over the years.[66]

  • Elastic currency (magnitude of the money multiplier): the success of monetary policy is dependent on the ability to strongly influence the supply of money available to the citizens. If a currency is highly “elastic” (that is, has a higher money multiplier, corresponding to a tendency of the financial system to create more broad money for a given quantity of base money), plans to expand the money supply and accommodate growth are easier to implement. Low elasticity was one of many factors that contributed to the depth of the Great Depression: as banks cut lending, the money multiplier fell, and at the same time the Federal Reserve constricted the monetary base. The depression of the late 1920s is generally regarded as being the worst in the country’s history, and the Federal Reserve has been criticized for monetary policy which worsened the depression.[67] Partly to alleviate problems related to the depression, the United States transitioned from a gold standard and now uses a fiat currency; elasticity is believed to have been increased greatly.[68]

The value of $1 over time, in 1776 dollars.[70]

  • Stable prices – While some economists would regard any consistent inflation as a sign of unstable prices,[71] policymakers could be satisfied with 1 or 2%;[72] the consensus of “price stability” constituting long-run inflation of 1-2% is, however, a relatively recent development, and a change that has occurred at other central banks throughout the world. Inflation has averaged a 4.22% increase annually following the mandates applied in 1977; historic inflation since the establishment of the Federal Reserve in 1913 has averaged 3.4%.[73] In contrast, some research indicates that average inflation for the 250 years before the system was near zero percent, though there were likely sharper upward and downward spikes in that timeframe as compared with more recent times.[74] Central banks in some other countries, notably the German Bundesbank, had considerably better records of achieving price stability drawing on experience from the two episodes of hyperinflation and economic collapse under the country’s previous central bank.

Inflation worldwide has fallen significantly since former Federal Reserve Chairman Paul Volcker began his tenure in 1979, a period which has been called the Great Moderation; some commentators attribute this to improved monetary policy worldwide, particularly in the Organisation for Economic Co-operation and Development.[75][76]BusinessWeek notes that inflation has been relatively low since mid-1980s[77] and it was during this time that Volcker wrote (in 1995), “It is a sobering fact that the prominence of central banks [such as the Federal Reserve] in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with ‘free banking.'”.

  • Sustainable growth – The growth of the economy may not be sustainable as the ability for households to save money has been on an overall decline[78] and household debt is consistently rising.[79]

Cause of The Great Depression

Money supply decreased significantly between Black Tuesday and the Bank Holiday in March 1933 when there were massive bank runs

Monetarists who believe that the Great Depression started as an ordinary recession but significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression.

Public confusion

The Federal Reserve has established a library of information on their websites, however, many experts have spoken about the general level of public confusion that still exists on the subject of the economy; this lack of understanding of macroeconomic questions and monetary policy, however, exists in other countries as well. Critics of the Fed widely regard the system as being “opaque“, and one of the Fed’s most vehement opponents of his time, Congressman Louis T. McFadden, even went so far as to say that “Every effort has been made by the Federal Reserve Board to conceal its powers….”[80]

There are, on the other hand, many economists who support the need for an independent central banking authority, and some have established websites that aim to clear up confusion about the economy and the Federal Reserve’s operations. The Federal Reserve website itself publishes various information and instructional materials for a variety of audiences.

Criticism of government interference

Some economists, especially those belonging to the heterodox Austrian School, criticize the idea of even establishing monetary policy, believing that it distorts investment. Friedrich Hayek won the Nobel Prize for his elaboration of the Austrian business cycle theory.

Briefly, the theory holds that an artificial injection of credit, from a source such as a central bank like the Federal Reserve, sends false signals to entrepreneurs to engage in long-term investments due to a favorably low interest rate. However, the surge of investments undertaken represents an artificial boom, or bubble, because the low interest rate was achieved by an artificial expansion of the money supply and not by savings. Hence, the pool of real savings and resources have not increased and do not justify the investments undertaken.

These investments, which are more appropriately called “malinvestments”, are realized to be unsustainable when the artificial credit spigot is shut off and interest rates rise. The malinvestments and unsustainable projects are liquidated, which is the recession. The theory demonstrates that the problem is the artificial boom which causes the malinvestments in the first place, made possible by an artificial injection of credit not from savings.

According to Austrian economics, without government intervention, interest rates will always be an equilibrium between the time-preferences of borrowers and savers, and this equilibrium is simply distorted by government intervention. This distortion, in their view, is the cause of the business cycle. Some Austrian economists—but by no means all—also support full reserve banking, a hypothetical financial/banking system where banks may not lend deposits. Others may advocate free banking, whereby the government abstains from any interference in what individuals may choose to use as money or the extent to which banks create money through the deposit and lending cycle.

Reserve requirement

The Federal Reserve regulates banking, and one regulation under its direct control is the reserve requirement which dictates how much money banks must keep in reserves, as compared to its demand deposits. Banks use their observation that the majority of deposits are not requested by the account holders at the same time.

Currently, the Federal Reserve requires that banks keep 10% of their deposits on hand.[81] Some countries have no nationally mandated reserve requirements—banks use their own resources to determine what to hold in reserve, however their lending is typically constrained by other regulations.[82] Other factors being equal, lower reserve percentages increases the possibility of Bank runs, such as the widespread runs of 1931. Low reserve requirements also allow for larger expansions of the money supply by actions of commercial banks—currently the private banking system has created much of the broad money supply of US dollars through lending activity. Monetary policy reform calling for 100% reserves has been advocated by economists such as: Irving Fisher,[83] Frank Knight,[84] many ecological economists along with economists of the Chicago School and Austrian School. Despite calls for reform, the nearly universal practice of fractional-reserve banking has remained in the United States.

Criticism of private sector involvement

Historically and to the present day, various social and political movements (such as social credit) have criticized the involvement of the private sector in “creating money”, claiming that only the government should have the power to “make money”. Some proponents also support full reserve banking or other non-orthodox approaches to monetary policy. Various terminology may be used, including “debt money”, which may have emotive or political connotations. These are generally considered to be akin to conspiracy theories by mainstream economists and ignored in academic literature on monetary policy.

See also

https://en.wikipedia.org/wiki/Monetary_policy_of_the_United_States

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David Halberstam — The Best and The Brightess — 20th Anniversary Edition — Videos

Posted on December 27, 2016. Filed under: American History, Articles, Blogroll, Books, College, Congress, Constitution, Corruption, Documentary, Education, Federal Government, Freedom, government, government spending, Heroes, history, Law, liberty, Life, Links, media, Non-Fiction, People, Philosophy, Photos, Politics, Press, Rants, Raves, Video, Wealth, Welfare, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , |

Image result for David Halberstam in vietnamImage result for The Best and the Brightest David HalberstamImage result for David Halberstam in vietnamImage result for David Halberstam in vietnamImage result for David Halberstam in vietnamImage result for Car Accident David HalberstamImage result for Car Accident David HalberstamImage result for Car Accident David HalberstamImage result for David Halberstam in vietnamImage result for David Halberstam in vietnamImage result for David HalberstamImage result for Car Accident David HalberstamImage result for Car Accident David Halberstam

David Halberstam, 1934-2007

David Halberstam on Covering War in the Vietnam War

David Halberstam Talks About Vietnam

Published on May 16, 2012

David Halberstam begins his career in 1955 as a reporter with the West Point, Miss., Daily Times Leader. By 1962, he’s reporting for The New York Times in Vietnam. Halberstam wins a Pulitzer Prize for international reporting in 1964. Among the books he authors are “The Best and the Brightest” (1972) and “The Powers That Be” (1979).

Vietnam War and the Presidency: Keynote Speaker

Published on Apr 23, 2014

David Halberstam, the Pulitzer Prize-winning reporter, gives the opening lecture at “Vietnam and the Presidency”, a national conference where leading historians, key policymakers of the Vietnam War era, and journalists who covered the war examine the antecedents of the war, presidential decision-making, media coverage, public opinion, lessons learned and the influence of the Vietnam experience on subsequent US foreign policy.

The Vietnam War was the longest and most controversial war that the United States ever fought. It claimed the lives of more than 58,000 Americans and over three million Vietnamese. From the arrival of the first US military advisors in the 1950s to the fall of Saigon on April 30, 1975, US involvement in Viet Nam was central to the Cold War foreign policies of Presidents Eisenhower, Kennedy, Johnson, Nixon and Ford. The war has continued to affect the policies of subsequent presidents, and its legacy is particularly relevant today during America’s war on terror.

David Halberstam – America Then and Now – 04/27/06

Published on Feb 12, 2014

David Halberstam is a legendary figure in American journalism. A graduate of Harvard University, he joined The New York Times in 1960 and was awarded a Pulitzer Prize for his reporting on the Vietnam War. His landmark trilogy of books on power in America, The Best and the Brightest, The Powers that Be, and The Reckoning, received wide critical acclaim. He is the author of fourteen bestselling books, including The Next Century, where he explores the American agenda for the 21st century; The Fifties, which examines the decade he considers seminal in shaping America today; and War in a Time of Peace, which recounts the impact of Vietnam on current U.S. foreign policy.

Conversations with History: Daniel Ellsberg

Daniel Ellsberg: Secrets – Vietnam and the Pentagon Papers

“Terminate With Extreme Prejudice” Daniel Ellsberg Talks About CIA Plot To Assassinate Him

Conversations with History: Neil Sheehan

The Early Years of the Vietnam War: Young War Correspondents (1996)

Published on Dec 4, 2014

Cornelius Mahoney “Neil” Sheehan (born October 27, 1936) is an American journalist. As a reporter for The New York Times in 1971, Sheehan obtained the classified Pentagon Papers from Daniel Ellsberg. His series of articles revealed a secret U.S. Department of Defense history of the Vietnam War and led to a U.S. Supreme Court case when the United States government attempted to halt publication.

He received a Pulitzer Prize and a National Book Award for his 1988 book A Bright Shining Lie, about the life of Lieutenant Colonel John Paul Vann and the United States involvement in the Vietnam War.

Born in Holyoke, Massachusetts and raised on a farm nearby, Sheehan graduated from Mount Hermon School (later Northfield Mount Hermon) and Harvard University with a B.A. in 1958. He served in the U.S. Army from 1959 to 1962, when he was assigned to Korea, and then transferred to Tokyo, where he did work moonlighting in the Tokyo bureau of United Press International (UPI). After his stint in the army he spent two years covering the war in Vietnam as UPI’s Saigon bureau chief. Sheehan relied heavily for information on Phạm Xuân Ẩn, who was later revealed to be a North Vietnamese agent. In 1963, during the Buddhist crisis, he and David Halberstam debunked the claim by the Ngô Đình Diệm regime that the Army of the Republic of Vietnam regular forces had perpetrated the Xá Lợi Pagoda raids, which U.S. authorities initially accepted. They showed instead that the raiders were Special Forces loyal to Diệm’s brother, Nhu, and motivated to frame the army generals. In 1964 he joined The New York Times and worked the city desk for a while before returning to the Far East, first to Indonesia and then to spend another year in Vietnam.

http://en.wikipedia.org/wiki/Neil_She…

Vietnam- A turning point for reporting war

Published on Aug 9, 2012

27/08/2010 – Join us for this special event to discuss the iconic war reportage, to mark 35 years since the end of the Vietnam War.

This special event brings together reporters who covered Vietnam to reflect on the war that changed the way the public think about conflict.

Saturation bombing, worldwide protests, napalm, agent orange and an estimated two million lives lost.

Has any war since had such an impact on the public psyche? Why was the reaction to the carnage in Vietnam so strong? Was it because of a lack of conviction in the cause the US was fighting for? Or was it because of these reporters and photographers and their work that so poignantly captured the brutality of war?

Jon Swain was the only British journalist in Phnom Penh when it fell to the Khmer Rouge in April 1975. His coverage of these events and their aftermath won him the British Press Award for Journalist of the Year. His story was retold in the Oscar-winning film, The Killing Fields and his bestselling book River of Time. Swain wrote an article about covering Vietnam in his early 20s in the most recent issue of Frontline: A Broadsheet.

French war photographer Patrick Chauvel was only 18 when he started covering the Vietnam war. In the years that followed he has covered over 20 wars and in 1995 won the World Press Photo award for Spot News. He is the author of two books in French, Rapporteur de Guerre and Sky.

John Laurence, author of the prize-winning memoir The Cat from Hue, covered the war for CBS News from 1965 to 1970 and made the multi-award winning documentary The World of Charlie Company. He also covered 15 other wars in Asia, Africa, the Middle East and Europe.

This special event will be moderated by Michael Nicholson OBE, former senior foreign correspondent for ITN. Nicholson reported for over 25 years from 15 conflicts, including Vietnam. The film Welcome to Sarajevo and his book Natasha’s Story were both based on his experiences covering the war in Bosnia.

The Best and the Brightest Who Advised Presidents: Shaping Modern Liberalism (1999)

vietnam war documentary [full documentary]

‘Vietnam in HD’: The Truth About the Vietnam War Told by the People Who Fought It past 2

David Halberstam’s The Fifties: “The Fear and the Dream” Part 1

David Halberstam’s The Fifties: “The Fear and the Dream” Part 2

David Halberstam’s The Fifties: “Let’s Play House”

David Halberstam’s The Fifties: “Selling The American Way”

David Halberstam’s The Fifties: “A Burning Desire”

David Halberstam’s The Fifties: “The Beat”

David Halberstam’s The Fifties: “THE RAGE WITHIN”

David Halberstam’s The Fifties: “The Road to the Sixties”

David Halberstam on the Global Economy and Middle Class Existence

David Halberstam on the Economic Fears of Americans

Author David Halberstam on the U.S. Deficit

Notebook: David Halberstam (CBS News)

C Span: Orville Schell on the death of David Halberstam

David Halberstam

From Wikipedia, the free encyclopedia
This article is about the author and journalist. For the radio sports announcer and executive, see David J. Halberstam.
David Halberstam
David Halberstam 1978.JPG

Halberstam in 1978
Born April 10, 1934
New York City, U.S.
Died April 23, 2007 (aged 73)
Menlo Park, California, U.S.
Occupation Journalist, historian, writer
Nationality American
Education Harvard University
Genre Non-fiction
Spouse Elżbieta Czyżewska (1965–1977; divorced)
Jean Sandness Butler (1979-2007; his death; 1 child)

David Halberstam (April 10, 1934 – April 23, 2007) was an American journalist and historian, known for his work on the Vietnam War, politics, history, the Civil Rights Movement, business, media, American culture, and later, sports journalism.[1] He won a Pulitzer Prize for International Reporting in 1964. In 2007, while doing research for a book, Halberstam was killed in a car crash.[2][3]

Early life and education

Halberstam was born in New York City and raised in Winsted, Connecticut, where he was a classmate of Ralph Nader, moving to Yonkers, New York and graduating from Roosevelt High School in 1951.[4] In 1955 he graduated from Harvard College in the bottom third of his class[5] with a BA after serving as managing editor of The Harvard Crimson.

Career

Halberstam’s journalism career began at the Daily Times Leader in West Point, MS, the smallest daily newspaper in Mississippi. He covered the beginnings of the Civil Rights Movement for The Tennessean in Nashville.[citation needed]

Vietnam

Halberstam arrived in Vietnam in the middle of 1962, to be a full-time Vietnam reporter for The New York Times.[6] Halberstam, like many other US journalists covering Vietnam, relied heavily for information on Phạm Xuân Ẩn, who was later revealed to be a secret North Vietnamese agent.[7]

In 1963, Halberstam received a George Polk Award for his reporting at The New York Times, including his eyewitness account of the self-immolation of Vietnamese Buddhist monk Thích Quảng Đức.[8]

During the Buddhist crisis, he and Neil Sheehan debunked the claim by the Diệm regime that the Army of the Republic of Vietnam regular forces had perpetrated the brutal raids on Buddhist temples, which the American authorities had initially believed, but that the Special Forces, loyal to Diệm’s brother and strategist Nhu, had done so to frame the army generals. He was also involved in a scuffle with Nhu’s secret police after they punched fellow journalist Peter Arnett while the pressmen were covering a Buddhist protest.[citation needed]

Halberstam left Vietnam in 1964, at age 30, and was awarded the Pulitzer Prize for International Reporting that year.[2] He is interviewed in the 1968 documentary film on the Vietnam War entitled In the Year of the Pig.[citation needed]

Civil Rights Movement and Poland

In the mid-1960s, Halberstam covered the Civil Rights Movement for The New York Times. He was sent on assignment to Poland, where he soon became ‘an attraction from behind the Iron Curtain’ to the artistic boheme in Warsaw. The result of that fascination was a 12-year marriage to one of the most popular young actresses of that time, Elżbieta Czyżewska, on June 13, 1965.

Initially well received by the communist regime, two years later he was expelled from the country as persona non grata for publishing an article in The New York Times, criticizing the Polish government. Czyżewska followed him, becoming an outcast herself; that decision disrupted her career in the country where she was a big star, adored by millions. In the spring of 1967, Halberstam travelled with Martin Luther King Jr. from New York City to Cleveland and then to Berkeley, California for a Harper’s article, “The Second Coming of Martin Luther King”. While at the Times, he gathered material for his book The Making of a Quagmire: America and Vietnam during the Kennedy Era.

Foreign policy, media works

Halberstam next wrote about President John F. Kennedy‘s foreign policy decisions on the Vietnam War in The Best and the Brightest. In 1972, Halberstam went to work on his next book, The Powers That Be, published in 1979 and featuring profiles of media titans like William S. Paley of CBS, Henry Luce of Time magazine, and Phil Graham of The Washington Post.

In 1980 his brother, cardiologist Michael J. Halberstam, was murdered during a burglary.[9] His only public comment related to his brother’s murder came when he and Michael’s widow castigated Life magazine, then published monthly, for paying Michael’s killer $9,000 to pose in jail for color photographs that appeared on inside pages of the February 1981 edition of Life.[10]

In 1991, Halberstam wrote The Next Century, in which he argued that, after the end of the Cold War, the United States was likely to fall behind economically to other countries such as Japan and Germany.[11]

Sports writing

Later in his career, Halberstam turned to sports, publishing The Breaks of the Game, an inside look at Bill Walton and the 1979-80 Portland Trail Blazers basketball team; Playing for Keeps, an ambitious book on Michael Jordan in 1999; Summer of ’49, on the baseball pennant race battle between the New York Yankees and Boston Red Sox; and The Education of a Coach, about New England Patriots head coach Bill Belichick. Much of his sports writing, particularly his baseball books, focuses on the personalities of the players and the times they lived in as much as on the games themselves.

In particular, Halberstam depicted the 1949 Yankees and Boston Red Sox as symbols of a nobler era, when blue-collar athletes modestly strove to succeed and enter the middle class, rather than making millions and defying their owners and talking back to the press. In 1997, Halberstam received the Elijah Parish Lovejoy Award as well as an honorary Doctor of Laws degree from Colby College.

Later years

After publishing four books in the 1960s, including the novel The Noblest Roman, The Making of a Quagmire, and The Unfinished Odyssey of Robert Kennedy, he wrote three books in the 1970s, four books in the 1980s, and six books in the 1990s, including his 1999 The Children which chronicled the 1959–1962 Nashville Student Movement. He wrote four more books in the 2000s and was working on at least two others at the time of his death.

In the wake of 9/11, Halberstam wrote a book about the events in New York City, Firehouse, which describes the life of the men from Engine 40, Ladder 35 of the New York City Fire Department. The Coldest Winter: America and the Korean War, the last book Halberstam completed, was published posthumously in September 2007.

Death

Halberstam died on April 23, 2007 at 10:30 a.m. in a traffic accident in Menlo Park, California near the Dumbarton Bridge, one week and six days after his 73rd birthday.[12]

After Halberstam’s death, the book project was taken over by Frank Gifford, who played for the losing New York Giants in the 1958 game, and was titled The Glory Game, published by HarperCollins in October 2008 with an introduction dedicated to David Halberstam.[13]

Mentor to other authors

Halberstam was generous with his time and advice to other authors. To cite just one instance, author Howard Bryant in the Acknowledgments section of Juicing the Game, his 2005 book about steroids in baseball, said of Halberstam’s assistance: “He provided me with a succinct road map and the proper mind-set.” Bryant went on to quote Halberstam on how to tackle a controversial non-fiction subject: “Think about three or four moments that you believe to be the most important during your time frame. Then think about what the leadership did about it. It doesn’t have to be complicated. What happened, and what did the leaders do about it? That’s your book.”[citation needed]

Criticism

Pulitzer Prize-winning Korean War correspondent Marguerite Higgins was the staunchest pro-Diệm journalist in the Saigon press corps, frequently clashing with her younger male colleagues such as Neil Sheehan, Peter Arnett, and Halberstam. She claimed they had ulterior motives, saying “reporters here would like to see us lose the war to prove they’re right.”[14]

Conservative military and diplomatic historian Mark Moyar[15] claimed that Halberstam, along with fellow Vietnam journalists Neil Sheehan and Stanley Karnow helped to bring about the 1963 South Vietnamese coup against President Diệm by sending negative information on Diệm to the U.S. government in news articles and in private, all because they decided Diệm was unhelpful in the war effort. Moyar claims that much of this information was false or misleading.[16] Sheehan, Karnow, and Halberstam all won Pulitzer Prizes for their work on the war.[citation needed]

Newspaper opinion editor Michael Young says Halberstam saw Vietnam as a moralistic tragedy, with America’s pride deterministically bringing about its downfall. Young writes that Halberstam reduced everything to human will, turning his subjects into agents of broader historical forces and coming off like a Hollywood movie with a fated and formulaic climax.[17]

Awards and honors

Books

See also

https://en.wikipedia.org/wiki/David_Halberstam

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Tribute To Entrepreneurs — Restoring The American Dream — Videos

Posted on October 11, 2016. Filed under: American History, Banking, Blogroll, Business, College, Communications, Computers, Computers, Constitution, Economics, Education, Employment, Faith, Family, Federal Government Budget, Fiscal Policy, Food, Freedom, Friends, history, History of Economic Thought, Law, Life, Macroeconomics, media, Microeconomics, Monetary Policy, Money, Money, People, Philosophy, Photos, Raves, Raymond Thomas Pronk, Strategy, Tax Policy, Taxation, Taxes, Technology, Television, Unemployment, Video, Wealth, Welfare, Wisdom, Work | Tags: , , , , , , , , , , , , , , , , , , , , , , |

Tribute To Entrepreneurs — Restoring The American Dream — Videos

Tribute to Entrepreneurs – Part II

Tribute to Entrepreneurs – Part I

Entrepreneur Inspiration

DNA of an Entrepreneur

50 Entrepreneurs share priceless advice

Richard Branson: Advice for Entrepreneurs

The 15 Characteristics of Effective Entrepreneurs

How to be an Entrepreneur

Donald Trump’s Top 10 Rules For Success (@realDonaldTrump)

Donald Trump & Robert Kiyosaki: The Keys to Succcess as an Entrepreneur

What’s Killing the American Dream?

FairTax: Fire Up Our Economic Engine (Official HD)

Do the Rich Pay Their Fair Share?

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Jim Powell — Triumph of Liberty — VideosThe Triumph of Liberty: A 2,000-Year History, Told through the Lives of Freedom’s Greatest Champions

Posted on September 3, 2016. Filed under: American History, Banking, Blogroll, Books, British History, College, Congress, Constitution, Documentary, Economics, Education, Employment, European History, Faith, Family, Freedom, Friends, government, government spending, Heroes, history, History of Economic Thought, Investments, Law, liberty, Life, Links, Literacy, Macroeconomics, media, Microeconomics, Middle East, Monetary Policy, Money, Newspapers, Non-Fiction, People, Philosophy, Photos, Police, Political Correctness, Politics, Psychology, Radio, Rants, Raves, Raymond Thomas Pronk, Religious, Reviews, Speech, Spying, Strategy, Talk Radio, Taxation, Taxes, Technology, Television, Television, Trade, Wealth, Welfare, Wisdom, Work, Writing | Tags: , , , , , , , , , , |

Image result for Jim Powell the triumph of liberty

Image result for Jim Powell the triumph of liberty

The Triumph of Liberty: A 2,000-Year History, Told through the Lives of Freedom’s Greatest Champions

“The Triumph of Liberty” Book Review

Milton Friedman: There’s No Such Thing as a Free Lunch

TAKE IT TO THE LIMITS: Milton Friedman on Libertarianism

Milton Friedman on Hayek’s “Road to Serfdom” 1994 Interview 1 of 2

The Road to Serfdom

Friedrich Hayek: Why Intellectuals Drift Towards Socialism

Hayek on Keynes’s Ignorance of Economics

The Life & Thought of Friedrich Hayek

Keynes v Hayek

The New Road to Serfdom: Lessons to Learn from European Policy

Dr. Walter Block: Austrian vs Chicago Schools

David Friedman & Bob Murphy – The Chicago Vs. Austrian School Debate – PorcFest X

“Triumph of Liberty” Presentation

 

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Jeffrey Tucker — Videos

Posted on July 23, 2016. Filed under: American History, Articles, Blogroll, Economics, history, Money, Strategy, Wisdom, Writing | Tags: , , , , , |

Donald Trump, Fascism, and Racism with Jeffrey Tucker

Jeffrey Tucker on The Left/Right Paradigm: “We Should Hold out a Principled Position”

Jeffrey Tucker Let’s Talk Bitcoin#1

Capitalism Is About Love (Jeffrey Tucker – Acton Institute)

What is the State, and what does it do? — Jeffrey Tucker

The New World of Breaking Bad — Jeffrey Tucker

Economics of Non-Scarce Resources — Jeffrey Tucker

Jeffrey Tucker – Liberty Classics: Socialism

Jeffrey Tucker – Liberty Classics: The God of the Machine

Jeffrey Tucker – Liberty Classics: The Rise and Fall of Society

What Libertarians Should Do — Jeffrey Tucker

How Murray Rothbard Became a Libertarian

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12 Dallas Police Officers Shot In Ambush Assassination with 5 Killed –Shooter Killed By Robot With Explosive Device — Black Lives Matters Provoking Black Racism — Lying Lunatic Left — Dallas Police Chief Brown, Former President George W. Bush and President Barack Obama Speech at Dallas Memorial Service Honoring Police Officers — Videos

Posted on July 9, 2016. Filed under: American History, Articles, Banking, Blogroll, Business, Communications, Congress, Constitution, Corruption, Crime, Crisis, Demographics, Documentary, Drug Cartels, Economics, Education, Elections, Employment, Federal Bureau of Investigation (FBI), Federal Bureau of Investigation (FBI), Federal Government Budget, Fiscal Policy, Freedom, government spending, history, History of Economic Thought, Homicide, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Monetary Policy, Money, National Security Agency (NSA_, People, Philosophy, Photos, Pistols, Police, Political Correctness, Politics, Psychology, Raves, Raymond Thomas Pronk, Regulations, Resources, Rifles, Tax Policy, Trade Policiy, Unemployment, Video, War, Water, Wealth, Weapons, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 715: July 12, 2016 

Pronk Pops Show 714: July 7, 2016

Pronk Pops Show 713: July 6, 2016

Pronk Pops Show 712: July 5, 2016

Pronk Pops Show 711: July 1, 2016

Pronk Pops Show 710: June 30, 2016

Pronk Pops Show 709: June 29, 2016

Pronk Pops Show 708: June 28, 2016

Pronk Pops Show 707: June 27, 2016

Pronk Pops Show 706: June 24, 2016

Pronk Pops Show 705: June 23, 2016

Pronk Pops Show 704: June 22, 2016

Pronk Pops Show 703: June 21, 2016

Pronk Pops Show 702: June 20, 2016

Pronk Pops Show 701: June 17, 2016

Pronk Pops Show 700: June 16, 2016

Pronk Pops Show 699: June 15, 2016

Pronk Pops Show 698: June 14, 2016

Pronk Pops Show 697: June 13, 2016

Pronk Pops Show 696: June 10, 2016

Pronk Pops Show 695: June 9, 2016

Pronk Pops Show 694: June 8, 2016

Pronk Pops Show 693: June 6, 2016

Pronk Pops Show 692: June 3, 2016

Pronk Pops Show 691: June 2, 2016

Pronk Pops Show 690: June 1, 2016

Pronk Pops Show 689: May 31, 2016

Pronk Pops Show 688: May 27, 2016

Pronk Pops Show 687: May 26, 2016

Pronk Pops Show 686: May 25, 2016

Pronk Pops Show 685: May 24, 2016

Pronk Pops Show 684: May 23, 2016

Pronk Pops Show 683: May 20, 2016

Pronk Pops Show 682: May 19, 2016

Pronk Pops Show 681: May 17, 2016

Pronk Pops Show 680: May 16, 2016

Pronk Pops Show 679: May 13, 2016

Pronk Pops Show 678: May 12, 2016

Pronk Pops Show 677: May 11, 2016

Pronk Pops Show 676: May 10, 2016

Pronk Pops Show 675: May 9, 2016

Pronk Pops Show 674: May 6, 2016

Pronk Pops Show 673: May 5, 2016

Pronk Pops Show 672: May 4, 2016

Pronk Pops Show 671: May 3, 2016

Pronk Pops Show 670: May 2, 2016

Pronk Pops Show 669: April 29, 2016

Pronk Pops Show 668: April 28, 2016

Pronk Pops Show 667: April 27, 2016

Pronk Pops Show 666: April 26, 2016

Pronk Pops Show 665: April 25, 2016

Pronk Pops Show 664: April 24, 2016

Pronk Pops Show 663: April 21, 2016

Pronk Pops Show 662: April 20, 2016

Pronk Pops Show 661: April 19, 2016

Pronk Pops Show 660: April 18, 2016

Pronk Pops Show 659: April 15, 2016

Pronk Pops Show 658: April 14, 2016

Pronk Pops Show 657: April 13, 2016

Pronk Pops Show 656: April 12, 2016

Pronk Pops Show 655: April 11, 2016

Pronk Pops Show 654: April 8, 2016

Pronk Pops Show 653: April 7, 2016

Pronk Pops Show 652: April 6, 2016

Pronk Pops Show 651: April 4, 2016

Pronk Pops Show 650: April 1, 2016

Story 1: 12 Dallas Police Officers Shot In Ambush Assassination  with 5 Killed  –Shooter Killed By Robot With Explosive Device — Black Lives Matters Provoking Black Racism — Lying Lunatic Left — Dallas Police Chief Brown, Former President George W. Bush and President Barack Obama Speech at Dallas Memorial Service Honoring Police Officers — Videos

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DALLAS, TX - JULY 12: Police officers arrive at an interfaith memorial service, honoring five slain police officers, at the Morton H. Meyerson Symphony Center on July 12, 2016 in Dallas, Texas. A sniper opend fire following a Black Lives Matter march in Dallas killing five police officers and injuring 12 others. (Photo by Tom Pennington/Getty Images)

DALLAS, TX – JULY 12: Police officers arrive at an interfaith memorial service, honoring five slain police officers, at the Morton H. Meyerson Symphony Center on July 12, 2016 in Dallas, Texas. A sniper opend fire following a Black Lives Matter march in Dallas killing five police officers and injuring 12 others. (Photo by Tom Pennington/Getty Images)

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A Police officer stands guard at a baracade following the sniper shooting in Dallas on July 7, 2016. A fourth police officer was killed and two suspected snipers were in custody after a protest late Thursday against police brutality in Dallas, authorities said. One suspect had turned himself in and another who was in a shootout with SWAT officers was also in custody, the Dallas Police Department tweeted. / AFP / Laura Buckman (Photo credit should read LAURA BUCKMAN/AFP/Getty Images)

A Police officer stands guard at a baracade following the sniper shooting in Dallas on July 7, 2016.

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