Patrick Barron

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Patrick Barron is a consultant to the banking industry. He teaches Austrian school economics at the University of Iowa and Bank Managemant Simulation for the Graduate School of Banking, University of Wisconsin. Visit his blog. Send him mail.

  • Blog
    Defending property rights cures the bathroom controversy

      The current tempest in a teapot among the “rights” advocates is that no one should be restricted from using the gender specific bathroom of his choice. The “rights” advocates want to use the police power of the state to ensure this outcome. The federal government has come down on the side...

  • Blog
    Another reason to get rid of the euro

    From today’s Open Europe news summary: European Commission considering new tools to prevent cash outflows from failing banks According to a document seen by the Financial Times, the European Commission is considering proposing a new ‘moratorium tool’ that would give national regulators the power to freeze payments to bondholders and potentially halt depositor...

  • Blog
    My response to an email blast by Roger Helmer, member of the European Parliament

    Per your recent email: “But the key point is that the UK is a massive importer (and net importer) of EU goods.  We will in fact be the EU’s largest export customer.  Bar none.  This is undesirable from a balance-of-payments point of view, but it gives us enormous negotiating clout.” Dear Roger, One...

  • Blog
    Is an increase in German exports a good thing for Germany?

    From today’s Open Europe news summary: German exports rise unexpectedly German exports rose by 1.9% month-on-month in March 2016, according to new data released by the National Statistics Office (Destatis) yesterday. It was the largest monthly increase in half a year, and came as a surprise to analysts who did not expect...

  • Blog
    Another step toward cash confiscation in Europe

    From today’s Open Europe news summary: ECB to halt production of €500 note, but it will retain its value The European Central Bank announced yesterday that it would stop printing the €500 note from the end of 2018 due to, “concerns that this banknote could facilitate illicit activities.” However, the bank confirmed...

  • Blog
    Draghi espouses the old “excess savings” nonsense

    From today’s Open Europe news summary: Draghi rebukes ECB German critics In a speech on Monday, the President of the European Central Bank, Mario Draghi, delivered a blunt rebuke to German criticism of the ECB’s low interest rate policy saying “There is a temptation to conclude that…very low rates…are the problem… But...

  • Uncategorised
    Can rules prevent money printing?

    Two ways to increase money   Today’s fiat dollar is created by two methods. One, the central bank (The Fed) creates new money when it purchases an asset. This money is credited to someone’s bank account, a liability on some bank’s books, and is matched on the bank’s asset side by new...

  • Blog
    A proper rejoinder to an empty threat

    From yesterday’s Open Europe news summary: French Economy Minister: UK “won’t be in a position to negotiate something better” after Brexit French Economy Minister Emmanuel Macron told an audience in London yesterday, “After a Brexit vote, you are not in a position to negotiate something better…Leave the club and you will be...

  • Blog
    German and Dutch objections to ECB QE are ignored

    From today’s Open Europe news summary: ECB Minutes show deep divisions over stimulus measures Minutes of the March meeting of the ECB governing council, released on yesterday reveal deep divisions amongst its members over the latest round of ECB stimulus. The Dutch and German members were fiercely against, The Financial Times reports,...

  • Blog
    My letter to the Philadelphia Inquirer re: The consumer always pays

    Dear Sirs: I have been following your reporting of Mayor Kenney’s proposed tax on sugary drinks. Please keep one thing in mind–consumers pay every tax; corporations merely collect it. Coca Cola and Pepsi must pass on the cost of any tax to the consumer or go out of business. Do not be confused with supposed “research”...

  • Blog
    Do what I say or I’ll shoot myself

    From today’s Open Europe news summary: Spain warns of consequences for Gibraltar if Britain votes for Brexit The Times reports that Spain may end its agreements with Gibraltar, and could even close the border if Britain votes to leave the EU. A Spanish official told the paper that “We do not see Britain...

  • Blog
    Part 2 of my interview re: The end of dollar hegemony

    Part 2. Thirty minutes. Pat Barron Show notes page: http://www.wakeupcallpodcast.com/dollar-hegemony-2/ iTunes link: https://itunes.apple.com/us/podcast/wake-up-call-podcast-foreign/id1089024518?mt=2&ls=1 In case you missed it, here is Part 1, also thirty minutes. Pat Barron Show notes page: http://www.wakeupcallpodcast.com/dollar-hegemony/ iTunes link: https://itunes.apple.com/us/podcast/wake-up-call-podcast-foreign/id1089024518?mt=2&ls=1

  • Blog
    The history, meaning, and probable end of “dollar hegemony”

    This thirty minute interview is part one of a two part series. Part two will be released next week. In this interview I explain how the dollar became the world’s leading reserve currency, what it means to be a reserve currency, how the US has benefited financially from this arrangement, and how delinking the dollar...

  • Blog
    My letter to the Financial Times of London re: The fallacy underlying the cause of Irish bank failures

    Re: Anglo Irish Bank executive appears in court after US extradition Dear Sirs: The failure of Anglo Irish Bank–whatever the reason–did not cause the collapse of other financial institutions. Mr. Boland’s article leads one to view banks as dominoes in which one collapse necessarily leads to the collapse of all, but such is not the...

  • Blog
    ECB to stimulate Europe by taking its citizens’ money

    From today’s Open Europe news summary: Further ECB stimulus expected to aid flagging Eurozone economy The European Central Bank is widely expected to announce further stimulus measures to aid the struggling Eurozone economy as it meets in Frankfurt today. Most analysts expected the deposit rate to be cut further into negative territory...

  • Blog
    My letter to the Philadelphia Inquirer re: mayor wants to impose soda tax

    (Philadelphia’s mayor wants to impose a three cent PER OUNCE! tax on sodas.) Re: Mayor Kenney: Soda tax would fund $400 million in projects Dear Sir: Philadelphia Mayor Kenney joins the too-long list of economically ignorant politicians. One begins to wonder whether ignorance of basic economics is a prerequisite for running for...

  • Blog
    Former Bank of England Governor Says Eurozone Must Break Up

    From today’s Open Europe news summary: Former Bank of England Governor warns Eurozone must break up if some members are ever to prosper again In his new book, former Governor of the Bank of England Lord Mervyn King warns, “Put bluntly, monetary union has created a conflict between a centralised elite on...

  • Articles
    The Impact of Negative Interest Rates

    Central banks the world over have lowered interest rates almost to zero– i.e., they have adopted a...

  • Blog
    My letter to the Philadelphia Inquirer re: Is Bernie the good socialist?

    Re: What kind of socialist is Bernie Sanders? by Joseph Betz Dear Sirs: Professor emeritus Joseph Betz thinks that Bernie is a good socialist, similar to the myth of the “good dinosaur“, a movie to which I took my three year old grandson. Professor Betz says that “Economically speaking, a government that guarantees...

  • Blog
    The ECB can buy my old bottle cap collection

    From today’s Open Europe news summary: Market players warn ECB could run short of sovereign bonds to buy Reuters reports that a number of banks have warned that the ECB may run out of sovereign bonds to buy, particularly if it ups the size of its monthly purchases. The ECB would either...