The ECB’s increasingly shrill mantra that it makes policy for the monetary union as a whole and not for its largest member (Germany) could well cause a black swan to appear — in the form of a German political shock this autumn. The Frankfurt-based officials have been ignoring the historical observation of Nobel Prize-winning economist Robert Mundell that central banks of federal unions are intuitively alert to symptoms of monetary instability in their dominant economic member — for example: Ontario in Canada and New South Wales in Australia. (California, at around 13% of the US economy does not qualify as “dominant.”)
That war is not productive may seem self-evident to Misesians but it is not to the "educated" public who have been taught that World War II ended the Depression and that deficit spending (of whatever kind it doesn't matter) spurs economic growth. Americans show not the slightest awareness that every dollar spent on the ongoing Afghan and Iraqi wars, the continuing occupations, and the rebuilding of those failed societies is one less dollar that can be spent at home, and that the whole adventure represents a giant transfer of American capital to the sweltering deserts and sun-baked slums of the Middle East. If they were aware of these economic realities would they not be more skeptical about administration claims that the terror war is enhancing our security?