"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Tuesday, December 28, 2010

Professor William Black On Just About Everything

Well, almost everything.  Excellent interview on Bloomberg from yesterday.  Bill Black covers topics such as the EU and Euro Crisis, the potential European political repercussions of the deteriorating economic situation, the Chinese housing bubble, the ongoing US Banking crisis, and the US Municipal Bond crisis that Meredith Whitney recently discussed on 60 Minutes.

I have a lot of respect for Bill Black; his resume is impressive and the man has integrity. Here is a brief bio, from PBS/Bill Moyers Journal:
William K. Black, author of THE BEST WAY TO ROB A BANK IS TO OWN ONE, teaches economics and law at the University of Missouri — Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics. 
Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.  
Black developed the concept of "control fraud" — frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management. 

Original link Here.

I also want to mention that the discussion on MMT is far from over.  I am still working on the next topics to be covered.  Reader Rajiv has posted some excellent links on the comments section of the post:  The Power to Tax and Modern Monetary Theory.  I will be incorporating some of his points in a follow up post.

From my experience, most of the blogs I follow that see gold in the final endgame rarely discuss the actual mechanics of our monetary system - what MMT describes.  And those blogs that do an excellent job of describing MMT more often see gold as a temporary mania, and that the crisis will eventually be resolved on its own and fiat will prevail.  I hope to offer a different perspective that incorporates both MMT and gold as an endgame. Judging from some of the comments here, I am not alone in wanting to explore this topic.  And I appreciate all comments on MMT, as it is one of those oftentimes confusing topics that are best understood thru an exchange of views with others.


Dave Narby said...

Bill Black is great, thanks for keeping us current on him. Unfortunately, his ideas likely won't be implemented until the system is being rebuilt.

Hey, any chance you can show us some hi-res pictures of your island? It looks awesome. : D

Misthos said...

Hi Dave,

I agree about Bill Black, and yes, ideas such as his are usually implemented when the system is rebuilt. Until then, those with the most power will do their best to prop it up, however damaging their actions are in the long run. They have too much to lose.

I wish I had a decent camera to take pictures of the island. Those I posted are from the net. But my favorite pictures I have seen of the island are on flickr. Here are some:





Kefalonia island, which is in the Ionian sea differs from the Aegean Sea islands in Greece. Kefalonia was under Venetian rule for several centuries and so its archtitecture has Italian influences. Very colorful. And right now is the rainy season, so I get to pick oranges and lemons from the trees in the yard, though I do miss the snow - but not the cold that comes with it!

My friends and family in New Jersey tell me they got a lot of snow. I went through that last February and March in New Jersey - we had almost two feet of snow at a time.

And being from Southern New Jersey (close to Philly) I gotta say:

GO EAGLES!!!!!!!!!!!

(by the way, Jim Rickards is originally a South Jersey guy and is a Philly fan. I believe he's from Cape May county, from what I recall him tweeting once. Which is interesting because so is Paul Volcker.