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Entries in Monetary Policy (88)

Wednesday
Oct292014

APIA - Gov. Florio’s Night of the Living Gold Standard 

Dear Monetary Policy Observer, 

Former New Jersey governor Jim Florio voiced a somewhat shrill alarm to the return of the gold standard as a viable campaign issue for federal candidates like Jeff Bell and Rand Paul.  

APP economics director Steve Lonegan replies with a well reasoned account of how leaving the gold standard has hurt economic growth and the middle class, and why considering the idea of a gold backed dollar isn’t something that should, as Florio put it in ironically seasonal terms, “have a stake driven through its heart.” 

We hope you find this material of interest. 

Happy Halloween, 

Nicholas Arnold

American Principles In Action

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Gov. Jim Florio’s “A Proposed Return to the Gold Standard is Cause for Concern” contains a certain irony: Mr. Florio's embrace of the most important decision made about our money in our lifetime made by President Richard Nixon, who left office under a severe cloud.

The facts are clear. During the 40 years prior to Nixon ending the gold standard the nation’s economy grew, on average, 4.5 percent per year. Since the Aug. 15, 1971 “Nixon Shock,” our average GDP growth has dropped by more than 25 percent annually. Had we maintained gold standard growth rates, this country’s economy -- and on average each of your paychecks and net worth -- would be 50 percent bigger today.

Mr. Florio refers to the ensuing "easy money" policies of the Federal Reserve as “stimulating” the economy. He omits that this has led to 1 percent of the population benefiting from 95 percent of the stock market wealth produced by “Quantitative Easing.” Meanwhile, middle-income families have seen their buying power drop 8 percent since 2007, caught in the grip of wage stagnation and a rising cost of living. The rich are getting richer and the middle class is getting poorer.

Read the full article here: http://www.nj.com/opinion/index.ssf/2014/10/lonegan_response_to_florio_gold_standard_oped_hed_goes_here.html

Friday
Oct242014

ALG' Daily Grind - New Hampshire's Shaheen no friend to Press Freedom 

6

Oct. 24, 2014

Permission to republish original opeds granted.

New Hampshire's Shaheen no friend to Press Freedom
Senator Jeanne Shaheen's campaign is keeping conservative reporters from attending their "open to the media" events.

'Let them have cash'
Mark Blyth and Eric Lonergan boldly propose to do what no central bank has done before: Just print money and give it to people.

A.F. Branco's 2015 Comically Incorrect wall calendar
The perfect gift this Christmas season.

Why is Obama fighting a war on carbon energy?
First came coal. Why oil and natural gas need to watch out.

Wednesday
Oct152014

APIA - Is Dollar’s Reserve Currency Status Costing US Jobs? 

Dear Monetary Policy Observer,

 

The financial media has been overjoyed by the dollar’s strong run over the past several weeks.  APIA senior economics adviser Ralph Benko points out that while cheapening the dollar is bad for the economy, the “King Dollar” status as a reserve currency may have cost the US economy 6 million jobs, according to Dr. Jared Bernstein, the chief economist to Vice President Biden. 

 

Benko calls for a return from “King Dollar” to a “high integrity, meticulously defined, dollar” pegged to gold as a way to sustain middle class growth.

 

We hope you find this material of interest.

 

Sincerely,

 

Nicholas Arnold

American Principles In Action

_________________________________________________________

 

The reserve currency status of the dollar, particularly as a potential factor in wage stagnation, has profound political implications.  Dispirited voters yearn for leadership that actually understands how to get the economic tide to lift all boats again.  Notwithstanding his promotion of some marked policy differences with this columnist, this columnist says three cheers for Dr. Bernstein for squarely pushing the reserve currency question into play.

 

[...]A dollar at the mercy of a freelancing Fed, subject to being whipsawed in value, up or down, is a barrier to commerce.  Money, by definition, is a medium of exchange, a store of value and — not be overlooked — a unit of account.  There are many empirical data tending to show that only by meticulously maintaining the definition of the unit — for example, by defining the dollar by grains of gold and making it legally convertible thereunto — can good job creation, and equitable prosperity, consistently be achieved.

 

Read the full article here: http://www.forbes.com/sites/ralphbenko/2014/09/29/the-rise-and-fall-and-rise-and-fall-of-king-dollar-part-1/

Friday
Oct032014

ALG's Daily Grind - White House security under fire 

6

Oct. 2, 2014

Permission to republish original opeds granted.

White House security under fire
Is presidential security adequate?

Are the dollar's days numbered?
Former Obama economist Jared Bernstein: "Dethroning 'king dollar' would be easier than people think." Really? A look at the decline of the dollar as the world's reserve currency.

Anderson: 60 percent of voters want Obamacare to be repealed
"A new poll finds that three-fifths of likely voters support the repeal of Obamacare."

Friday
Oct032014

APIA - Lonegan in Breitbart: Federal Reserve’s Greatest Triumph is Squeezing Middle Class 

Dear Monetary Policy Observer,

 

APIA's director of monetary policy Steve Lonegan continued to examine the Federal Reserve’s effects on the American worker in his latest article, which points out that incomes have fallen 8% over the same five year period as the Federal Reserve’s ambitious “Quantitative Easing” projects.

 

We hope you find this material of interest.

 

Sincerely,

 

Nicholas Arnold

American Principles In Action

_______________________________________________

Media coverage of Federal Reserve Chairman Janet Yellen’s speech ignores the continuing predicament of the middle income American.

Sure, those with highly leveraged portfolios or a large pile of retirement assets might care, but that’s not the median income worker. For conversation sake let’s call her Julia. Julia is far more concerned with whether her earnings will ever catch up to those in 2007.

The massive Fed interventions and record low interest rates over the last 6 years haven’t helped her. The government recently reported that the 2013 median income of Americans had plummeted 8 percent from 2007. Over half of that happened while the Federal Reserve trumpeted its various “Quantitative Easing” programs.

Instead of wasting so much time bantering about the Fed’s latest pronouncement, political leaders and the media should be focused on how to make workers able to thrive again.

Read the full article here: http://www.breitbart.com/Big-Government/2014/09/19/Federal-Reserve-achievement