Tuesday, October 17, 2006

Nobel Senility

Edmund Phelps states Taxes should be maintained on the lower Income levels, while Yunus received his Nobel prize for advancing the Poor minute loans at usurious rates. Greg Mankiw and Mark Thoma give the story. I should make my own position clear: I agree with Ned Phelps. One of the greatest pressures for Wage increases comes from Taxation, and to eliminate the threat, cancels one of the servicable Demands for higher Wages. Living Costs remain so defuse that Labor cannot gain sufficient material for confrontation with management over Salaries and Wages.

Wilson Mixon and John Tierney think the Nobel Prize should have gone to Sam Walton instead of Yunus. Bryan Coplan already opened the idea of awarding a dead Economist at Econlog. What is more important: Affordable Product or unaffordable financing? Felix Salmon cites an article which might provide insight by Henny Sender. Sender talks about predatory Hedge Funds, and actions taken to forestall their assumption of control through Debt purchase. Are the two forms of Debt disassociated?

David Artig cites an article by Andrew Browne on the accumulating Chinese Reserve of Dollars, expected to exceed $1 trillion (said sum greater than the GDP of all but nine Countries. Brad Setser is still trying to figure out who eats U.S. debt liabilities. It seems like Americans are already started selling foreign equities. We are no longer riding on American Holdings of foreign equities, and the ride could get a little rough in the future; especially as Our creditors remain relatively unnamed. Maybe I should have named this Post 'Hazards of Debt'. lgl

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