…flows of long-term, high quality asset purchases – Treasuries bonds/notes, agencies, stocks, and corporate bonds. The Chinese are accumulating stocks, primarily through private investors, but through official channels as well…

…the proposition that since interest rates are fixed under a liquidity trap, capital flows are fixed, and the exchange rate will adjust to offset any change in the trade balance.”…

…cash flows are less than profits. In our example, reinvestment to support growth would be about 15% of profits (3% times tangible assets = $1.5 million) so cash flows would…

…for unfunded liabilities by dumping money into long-term bonds. This explanation also seems insufficient: “world demographic trends are hardly news, and recent adjustments to funding shortfalls do not seem large…

…simple equations. The first is V = C/(r – g) where V is firm value, C is cash flow, g is the stready state growth rate of cash flows, and…

…equivocation. Pumping up the money supply can’t work forever. It leads to hyperinflation and low demand for real balances. In the medium run, wild money printing implies low not high…

…sense of international solidarity. Third, their governments allowed short-term capital inflows to enter their economies; did they not realize that the day could come when these flows would reverse? Finally,…

…laws need to change? In response, I sent this post on accounting for water flows and this example of how canal lining can harm “leak beneficiaries.” In addition, I said…

…exclude baseline environmental water flows. The Australians have done this in the Murray Darling Basin. The opposition to cut-outs will increase as their share of total flows rises, so it’s…

…but they would do better to look inward, at the flaws in their models and theories. Since the 1970s, economic orthodoxy has argued for low tariffs, free capital flows, elimination…