Archive for September 18th, 2015

Will Brazil Choose Marx or Mises?

September 18, 2015

Helio Beltrão founder and president of Instituto Mises Brasil, has an interview on this topic. Apparently Mises views are picking up in Brazil. As per the interview, Mises is more popular than Keynes in Brazil today.

People still know about Marz but Mises? I mean we have dumped history of economic thought into a dustbin but the thoughts and ideas keep coming back to haunt us.  In a way, this is a familiar and one of the oldest debate in economics on State vs Markets. Just that different players have argued things differently and have to be understood really well atleast by economics students. So Marx and Keynes both may lean on the side of the State but have very different takes on role of State.

Knowing History of economic thought is so relevant in today’s world. Events after events are telling us the same story..

PhD holders among 23 lakh applicants for peon jobs in Uttar Pradesh..

September 18, 2015

Alok Baadkar, a dear friend alerted me to this news piece. Just amazing to read this. In a country where we see surplus labor and labor shortages at the same time, to see so many degree holders apply for peon jobs:

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Renaming Bangalore City Railways Station..

September 18, 2015

Just missed this news bit.

In April-2015 apart from renaming several cities, Central Govt also agreed to change the name of Bangalore City Railway Station. It will now be called Krantivira Sangolli Rayanna station after the freedom fighter who fought the East India Company (born interestingly on 15 Aug 1798). I just read that this bit has been enforced now and the  station’s name stands changed.

But why? I am sure there are better ways to honor our freedom fighters other than just rename railways stations/airports/universities after their names. These places like railways stations/airports/universities make so much sense to be named after the city alone. Especially when they are already named that way. One can still have new stations etc named after a person but not an existing place.

Huge amount of public expenditure is made to enforce these changes (hoardings, stationery etc) which could easily be utilised elsewhere. Moreover, people cannot even associate the station to the place.

So much noise over FOMC meeting and yet nothing comes out of it..

September 18, 2015

Fed again chose not to cut rates.

I mean how many times we have had this situation. Not to forget it started way back in 2010 when Bernanke made exit policy really popular. Since then, it has been looking for a gate to exit not able to find one.  Some central banks which did find the exit gate (ECB, Riksbank, Norges Bank, RBA, Australia in 2010-11) found the weather really bad outside and forced themselves back in the theatre,

It has been a while this blog has read any of the central bank policy statements. It is just the same old story over and over again. But still the attention and hyoe keeps rising and getting shriller by the day. Infact after many thousands of years when records on Fed are going to be read by then historians they will surely wonder what all this noise was about. They will compare statements after statements to figure why there was so much attention and noise on this FOMC animal. They will be disappointed to find any correlations and wonder what the world was thinking back then. Same for other central banks as well.

So it took quite something to read the FOMC statement which was released last night. Given the noise one just wanted to see what was it all about. The statement just read like those old ones saying we are trying to do so and so for US economy. I mean how little things have changed really.

The problem is actually much bigger. It is not about whether Fed should cut or ease rates. This is just a much smaller question in the scheme of things. A much bigger question is whether we should allow some 10-12 people to determine economic fortunes of the entire world? The same applies to other central banks in their countries as well. Much of history of money and monetary policy is tragedy and recent events are just a continuation of the same.

Jeff Deist of Mises Institute sums up the breaking news:

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