tag:blogger.com,1999:blog-6276561747841568697.post8712713046016558374..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Krugman, College, and the Higher Education BubbleWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger33125tag:blogger.com,1999:blog-6276561747841568697.post-38276585652520181142019-03-19T07:30:49.201-04:002019-03-19T07:30:49.201-04:00Thanks for providing such a beautiful piece of inf...Thanks for providing such a beautiful piece of information.. I'm actually looking for a Educational Loan..Therefore it has helped me a lot... Can please elaborate more on <a href="https://v92410.hatenablog.com/entry/2019/03/05/210431" rel="nofollow">Auxilo Finserve</a>vishal1https://www.blogger.com/profile/09680575983791488030noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-77948183987456846632019-03-02T06:12:30.153-05:002019-03-02T06:12:30.153-05:00This comment has been removed by the author.vishal1https://www.blogger.com/profile/09680575983791488030noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-24319039000856990752018-09-03T08:45:35.336-04:002018-09-03T08:45:35.336-04:00Great post would like to know more on Study in Ind...Great post would like to know more on <a href="https://www.incred.com/education-loan.html" rel="nofollow">Study in India</a><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-31747378149555132562015-10-10T06:47:05.830-04:002015-10-10T06:47:05.830-04:00Thank you for your interesting and informative blo...<br />Thank you for your interesting and informative blog. I have enjoyed reading it and appreciate the work you have put into it. Here is some relevant information for you to review .<br /><a href="http://www.toygunzone.com/swat-vest-sets/" rel="nofollow">SWAT vest sets</a><br />Anonymoushttps://www.blogger.com/profile/10715603663238103347noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-79153787324331698662013-12-12T10:22:25.412-05:002013-12-12T10:22:25.412-05:00I can suggest my own personal point of view on thi...I can suggest my own personal point of view on this problem or find a good one essay writer service at <a href="http://papersmart.net/essay-writers.html" rel="nofollow">http://papersmart.net/essay-writers.html</a> made for me and other students. In general, great deal of meaning of all scientific data that are gathered in it come from social studies, historical facts and general surveys. Some information nevertheless remains an open question for me as well as for lots of distant learners of our country.Elissnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-33387930088093097822012-03-17T08:21:27.376-04:002012-03-17T08:21:27.376-04:00jason h States of the past have banned FRB and pla...<b>jason h</b> <i>States of the past have banned FRB and placing it under bureaucrats' jurisdiction merely opens the door for the ban to be lifted at a later date</i><br /><br />What states? What is the historical example you have in mind? I really want to know how it can be done and how the ban was circumvented.<br /><br /><i>A ban is unnecessary as the market will root out unstable and unsustainable ventures.</i><br /><br />Do you mean FRB will cause an economy wide-depression, harming people other than those who benefited?<br /><br />You may as well say speed limits are unnecessary because those who speed will all kill themselves. This overlooks the harm done to others. <br /><br />You obviously see the dilemma, that you might be hypocritical if you say ban FRB. But if FRB is unstable (which you admit) and does harm to by-standers (a possibility which you ignore), perhaps you should change your thinking?macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-60981533031007234322012-03-16T18:01:39.926-04:002012-03-16T18:01:39.926-04:00why not ban FRB?
Because when a free-market econo...<i>why not ban FRB?</i><br /><br />Because when a free-market economist or anarcho-capitalist calls for a State ban on FRB, the trolls cry, 'hypocrite!'.<br /><br />States of the past have banned FRB and placing it under bureaucrats' jurisdiction merely opens the door for the ban to be lifted at a later date, followed by the inevitable deposit insurance and lenders of last resort.<br /><br />A ban is unnecessary as the market will root out unstable and unsustainable ventures.jason hhttps://www.blogger.com/profile/03795436962579269461noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-26432408933907778922012-03-15T17:45:13.684-04:002012-03-15T17:45:13.684-04:00jason h If FRB is inherently unstable there is not...<b> jason h</b> <i>If FRB is inherently unstable there is nothing the gov't can do to alleviate or stabilize it .. </i><br /><br />So if you are right, why not ban FRB? Rothbard seemed to want to ban it, as did Irving Fisher, but I can never get a clear handle on how to do so.macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-29814924089145198122012-03-15T10:28:49.252-04:002012-03-15T10:28:49.252-04:00To clarify, I meant when the bank loans out demand...To clarify, I meant when the bank loans out demand deposits while also guaranteeing availability for immediate withdrawal.<br /><br />In that case I used 'notes' as Federal Reserve Notes, deposit receipts, cash, etc. and 'collateral' as reserves, or (classically) gold.jason hhttps://www.blogger.com/profile/03795436962579269461noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-33061464539482265862012-03-15T10:09:12.605-04:002012-03-15T10:09:12.605-04:00And when the forest burns down, the government fir...<i>And when the forest burns down, the government fire service shouldn't step in to alleviate the problems.</i><br /><br />If the gov't has taxed people for this service they better meet their obligation.<br /><br /><i>If it spreads to private property the private people can hire a fire service, etc etc.</i><br /><br />Absolutely - If the gov't doesn't hold a monopoly.<br /><br />If FRB is inherently unstable there is nothing the gov't can do to alleviate or stabilize it, and propping it up with deposit insurance and overnight money printing only amplifies the instability by masking the true problem.jason hhttps://www.blogger.com/profile/03795436962579269461noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-34838661938061295232012-03-15T01:17:03.782-04:002012-03-15T01:17:03.782-04:00jason h the bank issues more notes than they have ...<b>jason h</b> <i>the bank issues more notes than they have collateral.</i><br /><br />Banks no longer lend in the form of notes, they basically lend in the form of a checking account. But it amounts to the same thing. <br /><br />When banks did lend in the form of notes, they did not issue more notes than they had assets (or collateral). The banks had long term loans owing to them, and short-term liabilities (notes or deposit accounts). <br /><br />You probably mean "reserves"/ready cash, not collateral. I don't like to be petty about words, but there is a chance you and I have a different view on what FRB is, how it works, which may need to be clarified.macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-32535921316461271752012-03-14T17:43:15.350-04:002012-03-14T17:43:15.350-04:00jason h Assuming Hayek's Prices and Production...<b>jason h</b> Assuming Hayek's Prices and Production is correct, then FRB is unstable (and other people may have other reasons to think it is unstable). You say leave it alone, end the state support of it.<br /><br />Isn't this a bit like saying, let's not have any restrictions on the freedom to light fires in a forest, none of this "High Fire danger" rubbish and bureaucratic snooping around to see if people are freely choosing to cook over open fires on hot, dry and windy days. And when the forest burns down, the government fire service shouldn't step in to alleviate the problems. If it spreads to private property the private people can hire a fire service, etc etc. <br /><br />So, <b>if</b> FRB is unstable, leading to the boom and bust cycle, it does wide spread harm, not falling necessarily on only those who benefited from the boom. There are external effects, and external effects violate the conditions that allow us to show the market is perfectly just and proper, and perfectly efficient. <br /><br />So, <b>if</b> FRB is unstable, shouldn't it be banned or shouldn't the government alleviate the harm, or try to make it stable? Otherwise you are playing with fire.macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-31527535257832781342012-03-14T10:44:08.806-04:002012-03-14T10:44:08.806-04:00So I ask, what laws are required, in your opinion ...<i>So I ask, what laws are required, in your opinion to stop FRB, and why won’t the free market re-invent FRB in some other form?</i><br /><br />FRB does not have to be legally prohibited - just end the State support of it. And prosecute fraud just like any other case.<br /><br />People would be free to openly and honestly engage in FRB. Don't bail out the banks when there is a run on their reserves. And please don't turn around and blame the 'rigid' & 'archaic' gold standard for the problems created when the bank issues more notes than they have collateral.<br /><br />Many Austrians just play the game out and assume eventually bank runs will end the free market practice of FRB.jason hhttps://www.blogger.com/profile/03795436962579269461noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-63574917638732469132012-03-13T07:00:30.576-04:002012-03-13T07:00:30.576-04:00Mike M: Yes Gold makes a difference as it is not s...<b>Mike M:</b> <i>Yes Gold makes a difference as it is not simultaneously someone else’s liability.</i><br /><b>Chad:</b> <i>Gold makes a huge difference. A gold standard backed by 100% reserves is entirely stable.</i><br /><br />In 1844, the Bank of England was required by law to have 100% gold backing for every bank note in circulation – the currency was limited by the gold supply. The banking industry gradually switched from making loans in the form of bank notes, to making loans in the form of checking accounts, and the system was not "entirely stable".<br /><br />I think bank debt is your culprit, fractional reserve banking in which a bank's liabilities are of shorter term than its assets; gold makes no difference to that. <br /><br />So I ask, what laws are required, in your opinion to stop FRB, and why won’t the free market re-invent FRB in some other form?macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-23321043795366670252012-03-13T04:50:47.580-04:002012-03-13T04:50:47.580-04:00Chad: Private borrowing and government borrowing a...<b>Chad:</b> <i>Private borrowing and government borrowing are very different. </i><br />We all agree that governments spend borrowed money on different things from that which the private sector spends on, and that seems to be all you addressed. My question was in the context of LK’s question <i>how is it that a government deficit covered with dollar-for-dollar bond issues inflates the money supply?</i><br /><br />When the government borrows from the private sector, unlike a fractional reserve bank, it does not give the lender (the bond buyer) a deposit account which functions as money - the bond is not accepted as money. It is basically the same when the Ford Motor Company sells a bond – no new money is created.<br /><br />The Fed chooses to buy Treasury bonds on the open market, to increase the money supply, but the Fed is not required to buy the government bonds merely because the government issued them. If there were no government bonds the Fed could technically buy private bonds. Would that mean the Ford Motor increased the money supply by borrowing (selling bonds)?macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-45051884458303171512012-03-12T22:57:54.152-04:002012-03-12T22:57:54.152-04:00Thanks, Chad. You have indenitified fractional res...Thanks, Chad. You have indenitified fractional reserve bank as the main(?) problem. So what laws should there be stop the free market from re-inventing FRB, the way it always seems to do, even when gold is money?macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-90774119227120420332012-03-12T13:58:40.726-04:002012-03-12T13:58:40.726-04:00Not directed at me, but I would like to answer mac...Not directed at me, but I would like to answer macroman's four questions.<br /><br />1. Yes, borrowing still occurs under a reserve currency. However since it is limited to the amount of reserves set aside to be loaned out, the interest rates would reflect the supply and demand of credit.<br /><br />2. No, it does not increase the money supply since what is loaned out is transfered from one person to another. In the same manner me loaning you a hammer does not increase the supply of hammers.<br /><br />3. Gold makes a huge difference. A gold standard backed by 100% reserves is entirely stable. In effect the main reason the standard was abandoned was that the system shifted to fractal reserve and foriegn debt holders essentially made a run on the gold reserve. So rather than admit that the government issued more gold claims than there was gold, Nixon retired the gold standard.<br /><br />4. Private borrowing and government borrowing are very different. A private entity would have to perform a cost/benefit analysis to determine if the benefits of the loan exceed its cost. Also the collateral and credit rating are those of a vested interest.<br /><br />Government borrowing, however, will essentially boil down to political expediency. The costs faced by political powers are measured in public favor more than economic feasability. Since they will borrow and leverage things that they do not own, there isn't a vested interest beyond maintaining political control.Chadnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-11481578237241547312012-03-12T10:22:15.750-04:002012-03-12T10:22:15.750-04:00Macroman:
…I am just wondering if, in your view, a...Macroman:<br />…I am just wondering if, in your view, anyone ever borrowed money under gold standard money (or whatever alternative to Alfa Romeo money you prefer) and did that increase the money supply?<br /><br />The sardonic tone is noted. I’m making the point of the significant flaws in the currently monetary system. I in no way imply there is a perfect one. Gold standard included. People (government and bankers particularly) can and will misbehave under any monetary system. The question is which one is the least flawed given tht propensity.<br /><br />… 1) Does gold make any difference in you view? Because debt may be your problem, rather than the type of money.<br />Yes Gold makes a difference as it is not simultaneously someone else’s liability. Debt is not MY problem it is our problem. Invariable gold and/or some commodity asset will move back into the monetary system in some form. It always does after abuses and run their course.<br /><br /> …2) Does government borrowing, as opposed to private borrowing, make any difference, in your view?<br />To the degree it is monetized instead of borrowed from the stock of savings of course it makes a difference. To the degree private borrowing is accommodated with changes in fractional reserve standards it makes a difference.Mike Mnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-65419358868976181452012-03-11T21:49:36.216-04:002012-03-11T21:49:36.216-04:00Mike M LK asked how is it that a government defic...<b>Mike M</b> LK asked how is it that <i> a government deficit covered with dollar-for-dollar bond issues inflates the money supply.</i><br /><br />You replied <i>Fiat money is debt. Expand it and it is inflationary. To the extent existing stock is not destroyed is inflationary. </i><br /><br />I am just wondering if, in your view, anyone ever borrowed money under gold standard money (or whatever alternative to Alfa Romeo money you prefer) and did that increase the money supply? <br /><br />1) Does gold make any difference in you view? Because debt may be your problem, rather than the type of money.<br /><br />2) Does government borrowing, as opposed to private borrowing, make any difference, in your view?macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-86336488086629562152012-03-11T21:29:45.363-04:002012-03-11T21:29:45.363-04:00Tel: The warrant was requested by the U.S. Departm...<b>Tel:</b> <i>The warrant was requested by the U.S. Department of Education, and authorizes search of a specific premises. It does not include anyone's name other than the Judge and the investigating agent.</i> <br /><br />That is interesting. My (mis)-information came from a TV reporter holding a piece of paper in her hand and saying: here is the warrant given to the man, which he gave to us, it includes his name and his ex-wife's name.<br /><br />The physical evidence of violence is a broken door. The man says in his news statement to the TV cameras, "I told 'em to wait, I couldn't get the door open". If I was searching a place, with a warrant, and the occupant says he can't open the door, my suspicious mind thinks he is busy hinding the evidence, and breaking the door <b>may</b> be the proportinate response. (I can see it now - macroman and keynesians and liberals approve of the police state breaking down private doors whenever they like).<br /><br />The evidence for the claim that a SWAT team were searching the wrong house came from statements by the occupant of the house to TV cameras. So what are you going to tell the neighbors when you house is searched? Yes, they were searching for evidence of fraud and other criminal activities?<br /><br />Maybe we will hear more from the guy's lawyer. As I say, a lot of work would be required to get to the bottom of this, which is why I was scornful when I saw it thrown in from a source which made no attempt to get the official/other side of the story.macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-59548595892613405492012-03-11T11:26:41.556-04:002012-03-11T11:26:41.556-04:00In the 70s, four years at even Princeton was only ...In the 70s, four years at even Princeton was only about $20k, which correlated easily with a yearly starting salary. Debt-to-income was little more than a soft on-ramp to a credit history. <br /><br />Today, not so much.<br /><br />In between, research universities were newly able to cash in on patent streams, and yet... tuition skyrocketed. Subsidies for education have never been greater, and yet... costs are going through the roof.<br /><br />Harvard, Princeton, Yale have endowments that rival small countries, in the tens of billions. Tiny Princeton pushes out maybe 1000 undergrads a year--like a large high school.<br /><br />Yale, for years, has made noise about offering free tuition, to compete for the best and brightest. The other Ivies would soon follow, and other schools with smaller endowments would at least have some drag on rising tuition costs in order to compete.<br /><br />And yet, it never happens. The answer is, price fixing. Harvard, as a corporation, owns half of Rt 128. Bidness is good. Why should they?<br /><br />Modern debt-to-income ratios have skyrocketed compared to the 70s.<br /><br />Quality demand is up, quality supply not so much, any port in a storm will do. <br /><br />What species does this to their young?fredianohttps://www.blogger.com/profile/03635675676762077736noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-78322316013029362352012-03-11T00:29:52.111-05:002012-03-11T00:29:52.111-05:00LK : Also, I notice you continue to dodge the ques...LK : Also, I notice you continue to dodge the question how is it that a government deficit covered with dollar-for-dollar bond issues inflates the money supply.<br /><br />Are you naturally obtuse or do u have to work at it?<br /><br />Fiat money is debt. Expand it and it is inflationary. To the extent existing stock is not destroyed is inflationary. Whether it has negative consequences for consumers is dependent on a host of factors not the least of which is demand for the currency in question.<br /><br />Demand for the USD is moving to the downside not the upside. We are in the midst of watching the end game of western welfare state fiat currencies. The monetary system will be reorganized. The statists and crony capitalists have wrecked the system. They are burning it down and trying to usher in a full fascist state. <br />So LK, you go ahead and wallow in your smug, pseudo intellectualism. You’re going to get run over. I take no pleasure in seeing it. From a humanitarian perspective I hope you and your ilk have protected yourself. Somehow I doubt it however.Mike Mnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-50866244582182578192012-03-10T22:23:08.956-05:002012-03-10T22:23:08.956-05:00Ekeyra, I don't know what my views are on the ...Ekeyra, I don't know what my views are on the higher education explosion. Would need to read some reasoned analysis. Anderson may be right, but once I see that bs about the swat team I figure it is not worth reading the rest of the piece. It is unlikely to be be reasoned analysis.macromanhttps://www.blogger.com/profile/04142304372187307154noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-4069095617170928762012-03-10T19:05:36.955-05:002012-03-10T19:05:36.955-05:00Macroman, if you believe in truth in blogging then...Macroman, if you believe in truth in blogging then take a moment to read the search warrant yourself... it's published online.<br /><br />The warrant was requested by the U.S. Department of Education, and authorizes search of a specific premises. It does not include anyone's name other than the Judge and the investigating agent.<br /><br />There are some pages missing so presumably a second premises was also searched, because this is mentioned in attachment B. The suspected violations listed are:<br /><br />* Financial Aid Fraud.<br />* Conspiracy<br />* Theft of Government Funds<br />* False Statement to Government Agency<br />* Wire Fraud<br /><br />The list of "items to be seized" is long and broad, but "student aid", "student loans" and "fraud" get mentioned often.<br /><br />What exactly constitutes "theft of government funds" or "financial aid fraud" could be a whole lot of things... probably more serious than simply non-payment, but you never know. I guess we either see more of these things happening or we don't. I expect a lot more defaults happening.<br /><br />As for how violent the officers need to be in order to search a place, I guess that's a matter for common community standards, and in this day and age as long as no one gets killed, no one really cares about police giving people a bit of a rough over. Doesn't even make the news.Telhttp://lnx-bsp.net/noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-80486704033238091232012-03-10T18:08:17.324-05:002012-03-10T18:08:17.324-05:00macro, LK,
Yea dont bother to actually address th...macro, LK,<br /><br />Yea dont bother to actually address the entire article of exploding student debt and the ridiculous solution of throwing public money at a crumbling higher education system, just take cheap shots at an off hand comment about a swat team. Then try to play it off as concern for integrity instead of the petty bullshit it truly is. <br /><br />This is a new low for both of you.ekeyrahttps://www.blogger.com/profile/17413110869433997820noreply@blogger.com