Today’s Brew 3-21-17

Real Clear Markets

☕ John Tamny discusses David Malpass in this Real Clear Markets column:

The U.S. Treasury, and the Exciting Arrival of David Malpass


With Janet Yellen expected to depart after her first term, interviewers frequently ask me whom I would choose as her replacement as Chairman of the Federal Reserve.  My answer is always the same: David Malpass.

While the Federal Reserve presently serves no useful purpose such that its shuttering would affect a tiny percentage of the U.S. whole, the reality is that it still exists.  And it’s going to exist for a long time.

The National Pulse

☕ Ralph Benko writes about Alan Greenspan in the news for The National Pulse:

Greenspan’s Big Reveal: The Secret Recipe for Economic Growth


Most striking of all of his comments is Dr. Greenspan’s open declaration that under his chairmanship, during the high-growth, low-inflation period known as “the Great Moderation,” “US monetary policy tried to follow signals that a gold standard would have created. That is sound monetary policy even with a fiat currency.”

That the Greenspan Fed then was targeting the price of gold has long been a matter of inference and speculation. Tracking the vibrant economic growth period of monetary policy known as “the Great Moderation” demonstrates a great consistency with stability for the market price of gold.

That consistency drew an inference in some circles that the Greenspan Fed, during the Great Moderation, used the price of gold as a primary target in deciding whether to ease or tighten.

Greenspan’s recent interview provides, however, the first explicit declaration I have seen by the former Fed Chairman that this was intentional rather than coincidental. Had Greenspan stuck to that “sound monetary policy even with a fiat currency,” we would never have experienced the Panic of 2008 and the ensuing Great Recession.