Daily Digest 5/8 - Geithner Channels Greenspan, Dead Dolphins And Birds Causing Alarm In Peru, What Is The Limiting Factor?
- What Is The Limiting Factor?
- Return To The Gold Standard?
- French Center-Right Assesses Two Unpalatable Paths
- Qaeda Plot to Attack Plane Foiled, U.S. Officials Say
- Change in Paris May Better Fit U.S. Economic Positions
- Bill Black: Geithner Channels Greenspan and Airbrushes Fraud out of our Crises
- Japan to seek stable oil supply from Saudi Arabia
- Dead Dolphins and Birds Are Causing Alarm in Peru
- Once An Urban Landfill, Now A Rowing Paradise
What Is The Limiting Factor? (Michael W.)
Economists used to believe that capital was the limiting factor. Therefore they implicitly must have believed in complementarity between capital and natural resources back in the empty-world economy. But when resources became limiting in the new full-world economy, rather than recognizing the shift in the pattern of scarcity and the new limiting factor, they abandoned the whole idea of limiting factor by emphasizing substitutability to the exclusion of complementarity. The new reason for emphasizing capital over natural resources is the claim that capital is a near perfect substitute for resources.
Return To The Gold Standard? (ScubaRoo)
"Gold has had a rapid appreciation to $1800 (per ounce) so you would expect to see some pullback. If you want to participate you should buy gold shares, that's where the better opportunities are. We've had one bailout and gold rallied, we had another and gold rallied and we have not yet resolved the fiscal problems that are plaguing Europe and the United States. It's the bailing out that rallies the gold price," he said.
There are land mines ahead for Mr. Hollande as well. He is a centrist in his own party, which is more left-leaning than he is. And while his victory has been heralded as a moment of fundamental change, his own nature and beliefs, coupled with the constraints of French debt, could mean he ultimately disappoints with a more moderate course. The election was a rejection of Mr. Sarkozy, his personality and his style, but even so, Mr. Sarkozy’s announcement that he would not lead his party, known as UMP, into the parliamentary actions magnified the risks the party faces. If UMP does badly in June, there is some concern among supporters that it will fall apart, with some splinter groups forming an alliance with the National Front.
The plot was disclosed a day after an American drone strike in Yemen killed Fahd Mohammed Ahmed al-Quso, who was wanted for the bombing of the destroyer Cole in Yemen in 2000 and had replaced Mr. Awlaki as the external operations chief for the Qaeda branch. Though the device was seized close to the anniversary of the killing of Osama bin Laden, the Qaeda founder, officials said they had picked up no intelligence suggesting that the plot had been timed to the May 2 anniversary or motivated by revenge.
“Austerity need not be Europe’s fate,” Mr. Hollande said shortly after his victory. To that end, he has said he plans to renegotiate the fiscal pact Europe struck this winter to allow for more budgetary breathing room for countries that can still borrow money to support themselves at reasonable rates on the debt markets. He also supports measures to support growth by, for instance, bolstering infrastructure spending.
Three preliminary comments are in order. First, Geithner was selected to be the President of the Federal Reserve Bank of New York (FRBNY) in 2003. The President of the FRBNY has the second most important position in the Federal Reserve System. It is essential that the FRBNY President study and understand the causes of financial crises. Geithner had ample time and incentive to conduct such a study. Second, no one challenged Geithner when he (implicitly) claimed that fraud was not even worthy of mention or consideration as a contributor to financial crises. Third, even if Geithner were correct that fraud was only a relatively small contributor to the Great Recession that would provide no basis for not prosecuting the elite frauds who made that illegal contribution.
Japan has cut its crude imports from Iran amid tighter Western sanctions aimed at limiting Tehran's nuclear programme.
The seabirds, which seem mostly to have died onshore, have been found from Lambayeque to Lima. “Never in my 40 years as a fisherman have I seen anything like this,” said Francisco Ñiquen Rentería, the president of the Association of Artisanal Fishermen in Puerto Eten, in the Lambayeque region. “Sometimes in the past, you’d randomly see a dead dolphin or a pelican, but this, what’s happening now, is really alarming.”
Although the 1964 Olympic rowing trials were held on the Orchard Beach Lagoon in Pelham Bay Park in the Bronx, that stretch of water has drawbacks. Boats are sometimes moored on the course. And low tide reveals sandbars and rocks that could damage a rower’s delicate shell and tear off the fin that helps stabilize it in the water.
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