Below are links to some of the more interesting and important reads I came across today, but will not be publishing on in detail.
This post will be updated with new links throughout the day.
Bill Gross on Central Banks: They’re ‘Casinos’ (More like criminal cartels, Wall Street Journal)
Service Industries in U.S. Grew at Slower Pace in November (Bloomberg)
What to Watch as Court Weighs Fate of Net Neutrality (National Journal)
Casino Magnate Sheldon Adelson Draws GOP Hopefuls to Jewish Conference (Haaretz)
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‘This game can go on for as long as the citizenry retains faith in the bank and the currency, he wrote. If they lose faith in the practical value of the currency, the game will unravel quickly. “Venezuela, Argentina, and Zimbabwe are modern-day examples. Germany’s Weimar Republic is a great historical one.”’
Gross, Vigna, and the rest of the WSJ really are clueless as to how central banks work. A government that issues its own non-convertible fiat currency can never run out of that which it creates at will. Such a government (like the US, UK, Australia, Japan, etc.) imposes taxes on its currency users, accepting payment only in that currency. Taxes drive the value of fiat money, not “faith”.
What that means is that in a fiat currency system where the government (through its central bank) is the currency issuer, the economy can’t really exist without the state. That is what drives libertarians insane with rage. I am not saying that is good or bad but that is reality, no matter how much these guys insist otherwise.