Regulator names charities failing to access FPS stop requests

June 16, 2021 0 Comments

first_img AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis6 Regulator names charities failing to access FPS stop requests About Melanie May Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via  197 total views,  2 views today Advertisement The Fundraising Regulator has published a list of 36 charities that, as of 3 September, had not logged on to the Fundraising Preference Service (FPS) charity portal to access requests from the public to stop communications.Under the Data Protection Act 2018, individuals have the right to object at any time to use of their personal data for marketing purposes: a right that is also reflected in the Code of Fundraising Practice. When a request is made through the Fundraising Preference Service to stop communication from a charity, the service automatically emails the charity’s contact on the Charity Commission’s Register of Charities. The email says that someone from the charity must log in to a charity portal to collect the request, to action it and stop contacting the individual.If charities don’t action a request from the service within 28 days, they are in breach of section 5.7 of the Code of Fundraising Practice, which states that organisations must either cease within a reasonable period (as is practicable, but not exceeding 28 days) or not begin to process an individual’s personal data for the purpose of direct marketing whether they receive such a request. The Regulator states that it has tried working with the named charities but with no response. As a result, it has decided to publish their names, and to refer them to the Information Commissioner and the Charity Commission.It will now publish an updated list each month.  198 total views,  3 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis6 Melanie May | 6 September 2019 | News Tagged with: Fundraising Preference Service Fundraising Regulatorlast_img read more

Public Security Ministry pleased with “incident free”

January 14, 2020 0 Comments

first_imgFollowing the successful hosting of two state events – the National Flag Raising Ceremony and the Jubilee Float Parade – organised as part of the 50th Independence anniversary celebrations, the Ministry of Public Security said it is pleased that the events were “generally” incident free.In a statement on Friday, the ministry commended the general public and the Guyana Police Force for their display of good citizenship. It was observed that the Police Force, supported by the Guyana Fire Service and the Health Services, coordinated efforts to ensure the general safety and security of the public.According to the ministry, while citizens were in celebratory mode, “our officers were working beyond the call of duty to deliver first-class operational and security support to the major events over the last two days.These efforts included crowd control, traffic management, protection against possible terror threats and general public safety.”“The Ministry wishes to offer special commendation to the traffic ranks who executed a well put together plan to minimize inconveniences to the traveling public. It is heartening to note that we were able to celebrate our Golden Jubilee almost without incident,” the statement detailed.In addition, the ministry said citizens of Guyana and visitors who attended these mega events conducted themselves in a manner that is praiseworthy. Nevertheless, as there are a few more events remaining on the official Jubilee Calendar of events, the ministry calls upon the general public to continue to demonstrate good citizenship and the security forces to continue to demonstrate resolve and dedication.On another note, the Public Security Ministry extended condolences to the relatives of the late Roxanne Mitchell, who died as a result of a vehicular accident while returning home from the flag raising ceremony. “This loss of life is regretted.The Ministry takes this opportunity to call upon the traveling public to obey the rules of the road and take care and caution when traversing our roadways,” the statement read.last_img read more

Hoodie Travel Pillow

December 18, 2019 0 Comments

first_imgAre you sick of waking up with your head flopping about while drool drips onto your collar? Not a fan of finding yourself snuggled up inappropriately close to your neighbour? Well according to the makers you can protect your neck (and your dignity) in comfort and style with the Hoodie Travel Pillow. The inflatable neck-brace design provides support while you sleep, while the integrated fleece hoodie (with privacy drawstring) lets you hide away from the light and the possible prying eyes of fellow travellers. See here for to learn more; read more

Women’s Month launched in South Africa

December 18, 2019 0 Comments

first_imgMinister Noluthando Mayende-Sibiya, right,with fellow cabinet ministers. Government would like to see more womenoccupying top positions in the private sector. Both public and private sectors will supportthe Take a Girl Child to Work initiative.(Images: Bongani Nkosi)MEDIA CONTACTS• Sibani MngadiSpokespersonWomen, Children and Persons with Disabilities+27 82 7720 161RELATED ARTICLES• SA women take the lead• SA women in the spotlight• Media awards for SA women• Hair academy empowers women• Celebrating the power of womenBongani NkosiThe public sector in South Africa is making “steady progress” in securing senior positions for women in the workplace, said Minister of Women, Children and People with Disabilities Noluthando Mayende-Sibiya.The minister was speaking at the launch of Women’s Month in Pretoria on 2 August 2010.Although the entire month is dedicated to women, the public holiday on 9 August is particularly significant, as it marks the 54th anniversary of the women’s march to the Union Buildings, Pretoria, which at the time were the headquarters of the apartheid government.More than 20 000 women took part in this march to protest against racial segregation and the discriminatory pass laws, which restricted the movement of black people within declared “white areas”.This year government will use August to reflect on efforts made since then to empower women in rural areas, townships and cities.Women now occupy about 36% of senior-level jobs in government, Mayende-Sibiya said at the launch. “There is steady progress in the representation of women at senior levels of public services …”Similarly, this will be the focus of Public Service Week, which also falls in August.According to the minister, there are now more women in decision-making roles than there were in 1994, the year South Africa held its first democratic elections.Up to 44 % members of the legislature, on a national and provincial level, are women – this puts South Africa in third position worldwide for the greatest number of females in Parliament, Mayende-Sibiya said.The number of women ministers and deputy ministers has more than doubled over the past 16 years, growing from 18 % in 1994 to 40 % in 2010, she added.Transformation slow in private sectorWhile the South African government works hard to empower women and positively influence their role in society, other employers are lagging behind.According to the country’s Affirmative Action policy, the employment of women and previously disadvantaged individuals should be prioritised, but top private-sector positions are still dominated by white men, government said.Black, Indian and coloured South Africans fall into the “previously disadvantaged” category.At present, white men hold about 63% of senior management jobs in the private sector, while black, Indian and coloured women only account for 5%.While massive progress has been made in boosting female access to education, South Africa has to “ensure that skills development programmes focus on empowering women”, so they are able to follow “careers that are still male-dominated”, Mayende-Sibiya said.Speeding up transformationThe Department of Women, Children and People with Disabilities is planning to introduce a new policy to “enforce gender parity measures across all sectors of society”.The Gender Equality Bill should be tabled by next year, Mayende-Sibiya said.The Bill reflects government’s realisation that it needs to act decisively to enforce change in the workplace. “Our analysis of various studies available indicates that if we continue at the current pace of transformation, it will take us almost 40 years to attain 50-50 gender parity.“We cannot allow that. Measures have to be taken to hasten the process of gender and racial transformation in our country,” the minister said.Empowerment projects in AugustGovernment is planning to launch a number of countrywide initiatives to empower women this August.Mayende-Sibiya said their projects are aimed at tackling challenges facing women, reducing poverty and improving the socio-economic status of women in South Africa.The Gauteng provincial government said it will launch 200 women-only schemes across the province from 9 August.The schemes will take the form of cooperatives offering cleaning and catering services in hospitals, according to Simon Zwane, spokesperson for the Gauteng Department of Health and Social Development. “This is part of our agenda to empower women,” he said.Both the public and private sector will support the Take a Girl Child to Work initiative on 19 August, as has been done since the drive was launched in 2003.“To enforce mentoring of girls into various careers, we will all be supporting the campaign,” Mayende-Sibiya said.last_img read more

Laxman, Tendulkar bag top honours at ESPNcricinfo awards

November 28, 2019 0 Comments

first_imgVVS Laxman and Sachin Tendulkar won the awards for best batting performances in Tests and ODIs while Dale Steyn bagged the top prize in Test bowling in the fourth annual ESPNcricinfo Awards in Bangalore on Monday.Umar Gul, Michael Hussey and Tim Southee were the other winners.Laxman bagged the award for best Test batting for his 96 on a bowler-friendly pitch in Durban last December, while Tendulkar won the ODI award for his unbeaten double-hundred against South Africa in Gwalior last February, the first in the history of the 40-year-old format.Steyn took the bowling prize for his seven for 51 against India in Nagpur on a flat track.While Tendulkar still remains the only player to have scored a double ton in ODIs, what helped Laxman and Steyn beat their rivals was that their efforts came on unfavourable conditions, and led their teams to historic victories.This was the second time Tendulkar has won an award in this category — he had won last year for his brilliant 175, though in a losing cause against Australia in Mohali.Tendulkar faced stiff competition from Abdul Razzaq’s hurricane 109, which took his side to miraculous win against South Africa after they were nine down and needed 30 runs to win.Also winning his second award in two years was Umar Gul, the last year’s T20 bowling winner taking the ODI prize for his six for 42 against England at The Oval.In Twenty20, Southee was the runaway winner for his five-wicket burst in nine balls, which included a hat-trick.Hussey’s “freakish” innings of 60 in the World T20 semifinal against Pakistan beat Brendon McCullum’s century against Australia.The jury included former internationals Ramiz Raza, Kepler Wessels, Ian Chappell, Tony Greig, Geoff Boycott, Sanjay Manjrekar and Martin Crowe, and ESPNcricinfo’s senior editors.The jurors picked their top three performances in each category out of shortlists compiled by the site’s editorial staff. Each performance ranked No 1 got five points, while No 2 and 3 got three points and one respectively.Tendulkar’s and Gul’s performances were ranked No 1 by 10 jury members, Steyn’s by eight and Laxman’s 96 by five.advertisementWith inputs from PTIlast_img read more

Survey US manufacturing grew in November

October 13, 2019 0 Comments

first_imgWASHINGTON — U.S. manufacturers expanded at a faster pace in November as new orders surged, a positive sign for economic growth heading into 2019.The Institute for Supply Management, an association of purchasing managers, says its manufacturing index rose to 59.3 last month from 57.7 in October. Readings above 50 point to growth and manufacturers have expanded for the past 27 months.New orders jumped in November, while production and employment also saw gains.Out of 18 industries, 13 reported growth last month, including computer and electronic products, textiles, food and beverages and transportation equipment.Josh Boak, The Associated Presslast_img read more

In This Issue… Being the first to make the call

August 4, 2019 0 Comments

first_imgIn This Issue… * Being the first to make the call… * FOMC meeting today… * China loosens the purse strings… * Gold gives back Friday’s gains… And, Now, Today’s Pfennig For Your Thoughts! Sounding The All-Clear Horn… Good day… And a Tom Terrific Tuesday to you! Boy did it warm up here yesterday! Typical for March here, in that we’ll get warm weather that gets everyone to break out the shorts, and short sleeved shirts for a few days, and then winter will return for a few days… Of course I haven’t really been here for a complete March in years, but this is what I remember! HA! Well, just about every story I read last night, and this morning is talking about the turnaround in the economy, especially in housing… So, it must all be over… sound the all-clear alarm, we have nothing to worry about from here on out, so go about your business of spending, and forget about all the things that have been going wrong… The dollar will recover, and be as strong as ever, and our debt will just slowly disappear… There… that’s the Reader’s Digest version of what I’ve been reading the past 24 hours. For instance, this was in the WSJ… “As home prices continue to drop in most cities, a nascent real-estate rebound in Phoenix holds lessons for the rest of the country. The sprawling desert metropolis was one of the hardest hit housing markets during the bust, but prices are beginning to rise again.” So… no worries, it’s all over, and we can come out now, like the good witch told the munchkins… come out, come out, wherever you are, and meet the young lady that fell from the stars… Oh… there’s that little thing called debt… that won’t be wiped away with newspaper stories of revival… But, think about this… as they used to say in the markets about an asset that showed life when it was defying the fundamentals… “a dead cat bounce”… (no animals were hurt, it’s just a saying)… That’s what I believe is going on… but, you can’t argue with 100’s of screaming Mimi’s that truly believe that we’ve turned the corner as an economy… Well, that may be, but there’s another corner coming… So… The news regarding Greece and the Eurozone is fading into the background… That is until money exchanges hands on March 19th… Next Monday… Chris and Mike will bring that news to you. The currencies are a bit stronger this morning, nothing to write home about, but stronger nonetheless. Stronger, except the Japanese yen, and the Chinese renminbi… The yen is weaker, because of the news from the U.S. that the all-clear alarm has been sounded, and because of the news from the Eurozone, that a “safe haven” is no longer needed… (Not that I ever thought yen to be a safe haven, but the markets did) Gold, which had a strong rally on Friday, lost most of those gains yesterday, and is down another $3 this morning, because, like yen, people are removing their “safe haven” positions… But all this reminds of a story I wrote, when I was writing for the Sov. Society, a couple of years ago, and I found a ton of statements from people that should have known better about how the stock market was going to soar from here, and how the depression was over, and all kinds of things, only to be proven very, very wrong. Here’s the thing to think about… Everyone wants be “the guy that says it first”… I’ve done a heck of a lot of speaking over the years, and if you go to a person’s talk, the introduction will tell you that they claim to have called this or that, first… So, you have to be careful, just like the guys after the depression, to not make a statement about something when you don’t really have the info or data to back it up… And we’ll see more of this euphoria with the economy today, as Retail Sales for February print… I told you yesterday that I expect this data to print strong today, as the BHI tells me to expect it… Speaking of the BHI, we all know that it’s something I made up years ago, but… a dear reader pointed out to me that if you Google Butler Household Index, it references the BHI… pretty cool, I must say for something that I just made up years ago! I see where the national average of a gallon of gas is up to $3.87… I wonder what the crazy campers blowing the economy’s horn right now, have to say about what the high price of gas is going to do the economy… Ok… enough on the economy… I’ve said that we’re in the eye of the storm, and I’m sticking to that! And once again, the U.S. is choosing to bite the hand that feeds us… from the WSJ this morning: “The Obama administration on Tuesday will bring a new trade case against China that seeks to pressure the country to end its export restrictions on materials used to manufacture hybrid-car batteries, flat-screen TVs and other high-tech goods. Senior officials in the administration said the U.S. will ask the World Trade Organization to facilitate talks with China over its curtailment of exports of rare-earth minerals. The U.S. is bringing the case to the WTO along with the European Union and Japan, the officials said.” I don’t see how this benefits us… but, you know those boys and girls in Washington D.C. have far more gray matter than I… so, you know, they’ve got it all figured out, right? Probably not, they are probably just winging it, like everything else they do… remember Cash for Clunkers? Boy that really was a great idea, NOT! Speaking of China… China’s central bank indicated that it is ready to loosen monetary policy further to encourage lending by banks and stimulate the economy, as export demand weakens. Zhou Xiaochuan, governor of the People’s Bank of China, said the bank might continue relaxing the reserve ratio for banks. “We have a lot of room to adjust the reserve ratio,” he said.. And then we have the FOMC today… The Fed Reserve will meet and no one’s opinion but Big Ben Bernanke’s will count… And then he’ll tell us that rates remain unchanged, and that the Fed is seeing signs of recovery, but rates will remain at zero for some time… I do believe that if Big Ben doesn’t mention QE3. in any name or form, that stocks are going to feel the wrath of all the built in trades that were counting on QE3… But I’m no stock jockey, so don’t take my word on that, besides it’s just a gut feeling I have… I do think that if all things remain equal, and Big Ben doesn’t wander off the previous script on the economy, that the dollar will see some selling today… but, this isn’t a market moving thing, so the selling would be nascent at best… I had a reader ask me why I didn’t talk about the Mexican peso much… Hmmm… because there’s not much to talk about… Really… the news from Mexico is void of market moving stuff, and the peso is a crap shoot, and always has been… Remember, I was trading currencies and bonds in 1994… that was a very interesting time… and not fun for peso holders… But, when there is news that will move the peso, I will talk about it, my bad for forgetting about the peso… As if 1994 wasn’t bad enough already, with the World Series cancelled! The Aussie and kiwi dollars are stronger this morning, as they sift through the news from the weekend that China posted a very large Trade Deficit, and then the news last night that China will further loosen their monetary purse strings. And the people of Iceland are coming out of the shadows that have hung over the country since the meltdown that wiped out their economy, their banking system, and their currency… I read last week that the Icelandic people are demanding the Gov’t switch to the dollar… Ahhh, not so fast, not the U.S. dollar… the Canadian dollar! Then my friend, and guitar playing buddy, Dr. Steve Sjuggerud, wrote about this yesterday, and he said that he sees this as “something Iceland is doing as a warning sign about the future of the U.S. dollar and the end of the dollar standard.” I agree wholeheartedly… just add this to the roster of things / baby steps the world is taking to put a 100 miles of desert between them and the dollar… Then There Was This… from the Wall Street Journal this morning… “The Federal Reserve is fighting a subpoena from lawyers in a civil lawsuit who want the central bank’s chairman, Ben Bernanke, to testify about conversations he had with Bank of America Corp. executives before the lender completed its purchase of Merrill Lynch & Co.The three-year-old class-action suit alleges that the Charlotte, N.C., bank and Kenneth D. Lewis, then its chief executive, misled shareholders about ballooning losses at Merrill before the $19.4 billion acquisition was approved. The government provided $20 billion in U.S. aid after Bank of America officials told Mr. Bernanke and then-Treasury Secretary Henry Paulson in December 2008 that they might abandon the deal because of the losses. The Federal Reserve opposes efforts to make its chairman, Ben Bernanke testify on the Merrill Lynch takeover.Lawyers for the six plaintiffs, which include the State Teachers Retirement System of Ohio and the Teacher Retirement System of Texas, want to question Mr. Bernanke about conversations he had with Mr. Lewis before the Merrill purchase closed in January 2009, said a person close to the case. The lawyers from several firms, including Bernstein Litowitz Berger & Grossmann LLP, disclosed the subpoena to Mr. Bernanke in a document filed with the Southern District of New York.It would be highly unusual for an acting top regulator to be compelled to testify in a private lawsuit. The Fed has argued that the regulator’s behavior isn’t central to the case and that the Fed itself isn’t a party in the case, said people familiar with situation.”Chuck again… Hmmm… I guess I would have to say that if there are no bones in the closet, then why not testify, and get it out of the way?To recap… The all clear alarm has been sounded on the economy, so go out and spend, folks… but be very careful, for everyone wants to be the “first to make the call”… The currencies are a bit stronger this morning. China has announced they will loosen their purse strings to stimulate more domestic lending, and the FOMC meets today. Currencies today… American Style: A$ $1.0535, kiwi .8220, C$ $1.01, euro 1.3130, sterling 1.5656, Swiss $1.0875, … European Style: rand 7.5445, krone 5.6815, SEK 6.7980, forint 223.90, zloty 3.1325, koruna 18.7240, RUB 29.55, yen 82.70, sing 1.2605, HKD 7.7615, INR 49.91, China 6.3268, pesos 12.63, BRL 1.7966, Dollar Index 80.03, Oil $106.84, 10-year 2.04%, Silver $33.49, and Gold… $1,694.55 That’s it for today… and hopefully for me for the rest of the month… I’m hoping I can talk Mike Meyer into writing for me tomorrow, so I can officially begin my vacation by sleeping in! on a sad note… a good friend, and colleague, the woman I refer to as Suzie Q, Sue is retiring, and her last day here will come while I’m gone… So this is so-long… not goodbye… I guess I’ll have to make the coffee every day now! Good luck in your new life, Suzie Q! The first Water Polo game of the year was a rout… Alex did get one goal, before the coach had to “call the dogs off” and let all the freshmen play… Andrew’s varsity team also won, so a great start to the year! This Friday, the whole family will be together in Florida, as my two older kids (Dawn & Andrew) with spouses, Jerry and Rachel, and grandkids, Delaney Grace, Everett, and Braden all arrive… (I’m glad I’m not on that plan with them! HA!) and we will enjoy a week of baseball & beach together… I’m looking to it! And with that, I’ll get out of your hair… I thank you for reading the Pfennig, and I hope you can get out there and make this a Tom Terrific Tuesday! Bye… (for now!) Chuck Butler President EverBank World Markets 1-800-926-4922 1-314-647-3837 read more

By Dr Lacy Hunt for Casey Research

August 4, 2019 0 Comments

first_imgBy Dr. Lacy Hunt for Casey Research In the early 1960s, when JFK was in the White House and William McChesney Martin was Fed chairman, Keynesian economics was in full bloom. One of its major tenets is the Phillips Curve, which posits a stable inverse relationship between the rate of inflation and the unemployment rate. Yale professor James Tobin and others argued that the social outcome could be improved by a more activist monetary and fiscal policy. Specifically, they contended that the unemployment rate could be lowered while only resulting in slightly higher inflation. The argument posited the notion that economic policymakers had sufficient knowledge to intervene or fine-tune the economy with tools like those of a surgeon. Presidents Johnson, Nixon, and Carter (two Democrats and one Republican) followed this policy. At one point, President Nixon made the famous statement that “We are all Keynesians now.” Moreover, as the White House led, the Fed chairmen of the era – Martin, Burns, and Miller – generally acquiesced. To judge the effectiveness of this policy, an objective standard is needed. Arthur M. Okun, Yale colleague of Tobin, developed such a standard, which he called the Misery Index – the sum of the inflation and unemployment rates. Under the activist, Phillips Curve-based policy, some reduction in unemployment was temporarily achieved. However, inflation accelerated much more than was anticipated, and the net result was higher unemployment and faster inflation, an outcome not at all contemplated by the Phillips Curve. The Misery Index surged from an average of 6.7% in the 1950s, to 7.3% in the 1960s, to 13.6% in the 1970s, with peak rates above 20% in the early 1980s. Many US households suffered. Wages of lower-paying positions failed to keep up with inflation, and when higher unemployment resulted, many of those people lost their jobs. Those on the high end had far more resources that enabled them to protect their investments and earned income, so the income/wealth divide worsened. A half-century later, the United States has never regained the prosperity of the 1950s. Working independently in the late 1960s, economists Milton Friedman and Edmund Phelps, who would both eventually be awarded the Nobel Prize in economics, had determined that while the Phillips Curve was observable over the short run, this was not the case over the long run. While the economics profession debated the Friedman/Phelps research, the US had to learn its findings the hard way. Growing Evidence of the Long-term Depressants from Activist Policies In addition to the compelling evidence that more active monetary and fiscal policy involvement did not produce beneficial results over the short run, three recent academic studies, though they differ in purpose and scope, all reach the conclusion that extremely high levels of governmental indebtedness diminish economic growth. In other words, deficit spending should not be called “stimulus” as is the overwhelming tendency by the media and many economic writers. Whereas government spending may have been linked to the concept of economic stimulus in distant periods, these studies demonstrate that such an assertion is unwarranted, and blatantly wrong in present circumstances. While officials argue that governmental action is required for political reasons and public anxiety, governments would be better off to admit that traditional tools only serve to compound existing problems. These three highly compelling studies are: Debt Overhangs: Past and Present, by Carmen M. Reinhart, Vincent R. Reinhart, and Kenneth S. Rogoff, National Bureau of Economic Research, Working Paper 18015, April 2012; The Impact of High and Growing Government Debt on Economic Growth – An Empirical Investigation for the Euro Area, by Cristina Checherita and Philipp Rother, European Central Bank, Working Paper Series 1237, August 2010. These papers reflect serious research by world-class economists from the US, Europe, and Sweden – and they all confirm the detrimental consequences of extreme governmental indebtedness. Misery on the Rise Again In the past year, Okun’s impartial arbiter averaged 10.5%, the highest on record for the third year of an officially recognized economic recovery and almost double the average of the 1950s. The latest readings have occurred despite US gross public debt in excess of 103% of GDP and with the Federal Reserve’s unprecedentedly large balance sheet that approaches nearly $3 trillion. Other measures of well-being confirm the Misery Index. The Poverty Index in 2011 appears to have reached 15.7%, the highest reading in five decades. Not surprisingly, two unenviable records have been set: 46 million, or 14.6% of the population, are now in the food stamp program, up from 7.9% in 1970 and a record-high 41% pay zero national income tax. In the eleven quarters of this expansion, the growth of real per-capita GDP was the lowest for all of the comparable post-WWII business cycle expansions. Real per-capita disposable personal income has risen by a scant 0.1% annual rate, remarkably weak when compared with the 2.9% post-war average. It is often said that economic conditions would have been much worse if the government had not run massive budget deficits and the Fed had not implemented extraordinary policies. This whole premise is wrong. In all likelihood the governmental measures made conditions worse, and the poor results reflect the counterproductive nature of fiscal and monetary policies. None of these numerous actions produced anything more than transitory improvement in economic conditions, followed by a quick retreat to a faltering pattern while leaving the economy saddled with even greater indebtedness. The diminutive gain in this expansion is clearly consistent with the view that government actions have hurt, rather than helped, economic performance. Sadly, many of those whom the government programs were supposedly designed to help the most have suffered the worst. The Way Out The original theoretical argument in favor of deficit spending originated in J.M. Keynes’ The General Theory of Employment, Interest and Money. A search of Keynes’ work reveals no recognition of the “bang point,” or the condition where a government engages in deficit spending for such a prolonged period of time that a massive buildup of debt leads to denial of additional credit to the government because of fear that the existing debt will not be repaid. Nor did Keynes address the situation where a large number of countries are all simultaneously getting deeper and deeper in debt and there are gradations of debt among these countries – serious shortfalls in the basic Keynesian theory. Keynes, as opposed to some of his interpreters and predecessors, may have implicitly recognized that a bang point could occur, because he did not recommend constant budget deficits. Instead, he advocated cyclical deficits, counterbalanced by cyclical budget surpluses. Under such a system, government debt in bad times would be retired in good times. However, Keynes’ original proposition was bastardized in support of perpetual deficits, something Keynes himself never advocated. Milton Friedman, whom many consider to have been the polar opposite of Keynes, also never addressed the concept of a bang point, but he may also have understood implicitly that such a situation could occur. The reason is that Friedman advocated balanced budgets, which if followed or required constitutionally as Friedman argued, would prevent a buildup of debt. This view was largely rejected as being inhumane since in a recession, government policy would not be responsive to unemployment and other miseries of such a condition. What should have been discussed is whether some short-term misery is a better option than putting the entire country and economic system in jeopardy, as numerous examples in Europe currently illustrate. The most sensible recognition of budget policy came not from Keynes nor Friedman, but from David Hume, one of the greatest minds of mankind, whom Adam Smith called the greatest intellect that he ever met. In his 1752 paper Of Public Finance, Hume advocated running budget surpluses in good times so that they could be used in time of war or other emergencies. Such a recommendation would, of course, prevent policies that would send countries barreling toward the bang point. Countries would have to live inside their means most of the time, but in emergency situations would have the resources to respond. In the context of today’s world, this approach would be viewed as unacceptable because it would limit the ability of politicians to continue their excessive spending, thereby saddling future generations with obligations and promises that cannot be honored. But isn’t Hume’s recommendation exactly what we teach our children in preparing them to manage their own personal finances? Lacy Hunt is the executive vice president of Hoisington Investment Management, a firm with over $5.8 billion under management, and one of the nation’s top-performing bond managers. Lacy’s work has been published in Barron’s, Wall Street Journal, New York Times, Journal of Finance, the Financial Analysts Journal, and the Journal of Portfolio Management. Previously he was the chief economist for the HSBC Group, one of the world’s largest banks, and the senior economist for the Dallas Fed. At the Casey Research/Sprott Navigating the Politicized Economy Summit, he will be making a comprehensive presentation on the policy options the government has left to it, the consequences of those options, and how investors can position themselves. He will also be participating in an on-stage exchange of views on the Fed with G. Edward Griffin, the author of the best-selling The Creature from Jekyll Island and long-term Fed critic. One of the really great things about these Summits is that most of the faculty, including Lacy, attend the entire event, giving you a rare opportunity to meet them in person and get your specific questions answered. Early-bird registration is open through August 3, so reserve your seat today.center_img Government Size and Growth: A Survey and Interpretation of the Evidence, by Andreas Bergh and Magnus Henrekson, IFN Working Paper No. 858, April 2011;last_img read more