Consulting by RPM || Free Advice Blog

Potpourri

* Scott Sumner discusses the Fed’s hints that they will drop the “federal funds rate” as their target variable, and instead will use the interest rate on excess reserves. If you can’t stomach the wonkish stuff, just scroll down to the end where Sumner explains that beyond the jargon, this transition would transfer power from regional Fed banks to DC. Hmmm. BTW, if you really parse their trial balloon statements, it seems that maybe what the Fed gurus are really saying is that they will still be targeting the fed funds rate, because it will trade at some spread relative to the interest rate on reserves. So having put 5 minutes of thought into this, I have to side with Robert Wenzel who says this is a mere codification of what the Fed has been doing already, rather than a stunning change in policy as Sumner argues.

* I haven’t had time to read this carefully, but more on possible government moves to tap into your retirement accounts.

* Chip Knappenberger has an uncharacteristically harsh critique of the IPCC. What I mean is, Chip is usually very moderate in his claims, but he lets loose in this piece describing (apparently) shocking lapses in the IPCC’s official procedures to codify the “scientific consensus” on various points. Chip is actually a published climate scientist so he is not a mere right-wing talking head.

* Doug French describes Rothbard in class.