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
    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...

  • Articles
    My letter to the WSJ re: Inflation is not indicative of an expanding economy

    Re: US Consumer Prices Flat in January, but Offer Glimmer of Inflation Dear Sirs: This quote from Ms. Davidson’s article perfectly illustrates the fallacy that higher prices are desirable: ”Broad-based price growth is signalling that the wage and price pressures are building, an indication that the economy is expanding at a solid pace...

  • Blog
    My letter to the WSJ re: Not too much production but too much of the wrong kind of production

      Re: China’s Economy Suffers From Hangover of Producing Too Much Dear Sirs: The focus of this otherwise excellent article should be that China has produced too much of the wrong goods. Easy credit causes disruption in the time structure of production, making longer term projects appear to be profitable in the future. But...

  • Blog
    Herr Krichbaum reveals more about the EU than he intended

    From today’s Open Europe news summary: “German conservative MP Gunther Krichbaum – who chairs the Bundestag’s EU Affairs Committee – has warned that the UK “won’t be able to survive” outside the EU, citing the reintroduction of tariffs on British exports in the event of Brexit.” Herr Krichbaum has revealed more about...

  • Blog
    My letter to the Philadelphia Inquirer re: Who benefits from labor laws?

    Re: Where to Invade Next, directed by Michael Moore Dear Sirs: I look forward to watching Michael Moore’s recent film that purports to show how Europeans and Africans have passed laws, such as long maternity leaves that must be paid by employers, that benefit “society”. I doubt that Mr. Moore has ever...

  • Uncategorised
    More Eurozone integration will bankrupt Germany

    From today’s Open Europe news summary: Bundesbank and Bank of France Governors call for Eurozone finance ministry In a joint article for Sueddeutsche Zeitung Bundesbank President Jens Weidmann and Bank of France Governor Francois Villeroy de Galhau argue, “The current asymmetry between national sovereignty and communal solidarity is posing a danger for...

  • Blog
    Car prices are not immune to the laws of supply and demand

    A recent Daily Article from the Ludwig von Mises Institute in Auburn, Alabama titled “Is the Auto Loan Bubble Ready to Pop?” Tommy Behnke predicts that auto prices will fall as the bubble  bursts from the artificially created demand generated from excessive credit creation. Mr. Behnke points out that car production has...

  • Blog
    My letter to the NY Times re: Safety net for regulators

    Re: A Middle Ground Between Contract Worker and Employee Dear Sirs: Noam Scheiber’s report of how current labor laws cause unintended adverse consequences for new, digital companies should lead everyone to question the need for such regulations. Why not let employers and workers decide their own terms of employment? The safety net,...