© 2019 by Henry Thornton. 

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March 15, 2017

Ho hum, we are assumed to be running out of gas mainly because we are not replacing our coal fired power stations as the result of the CO2 religion.  South Australia has an energy deficit and the rest of Australia will too once the CO2 religion is thoroughly embedded i...

January 3, 2017

Time passes quickly these days and it seems only like yesterday that I penned the most recent instalment of the Hissink File. Yet it’s been just over two months and so much has also happened globally that our readers might e wondering why I’ve been so unproductive.  Un...

September 22, 2016

It seems Oil Shale production has peaked in the US and according to some, has started to decline, leading one to muse that US energy dependency is back on the table, and the search for secure oil supplies will be restarted, or so a recent contributor to David Stockman’...

September 1, 2016

Spring cleaning and Henry has moved house to a new web service; Henry’s Spring as it were, to coin a hackneyed phrase.

So we have survived another federal election and I have to say that the winning margin of one seat in the House of Representatives with an increase in...

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The next financial crisis ... is inevitable

The weekend AFR's article reporting the GFC work to save our financial system was interesting. RBA chief Glenn Steven is reported as saying something like: 'We flooded the system with liquidity'. (An action recommended by Bagehot all those years ago.)

Coincidentally, this week's Economist looks at the global equivalent under the heading 'Has finance been fixed?'

It concludes: 'Policymakers have made the economy safer, but they still have plenty of lessons to learn. And fracturing geopolitics make globalised finance even harder to deal with. A decade after Lehman failed, finance has a worrying amount to fix.'

Deep within the article is a statement I have not heard before.

'The Fed acted as lender of last resort to the world, offering foreigners $1trn of liquidity.

[other sources say total swaps were more like $ 11 trn]   Since then, offshore dollar debts have roughly doubled. In the next crisis, America’s political system is unlikely to let the Fed act as the backstop to this vast system, even after Donald Trump leaves the White House.'

This is a truly scary remark.

Comments welcome. Contact Henry here.



Who is Henry

 Henry Then...

"Henry Thornton (1760-1815) was a banker, M.P., philanthropist, and a leading figure in the influential group of Evangelicals that was known as the Clapham set. His 'Enquiry into the Nature and Effects of the Paper Credit of Great Britain (1802)' is an amazing performance. "...it anticipates in some points the analytic developments of a century to come. No other performance of the period will bear comparison with it, though several, among them Ricardo's, met with much greater success at the time as well as later... He was one of those men who see things clearly and who express with unassuming simplicity what they see."

This is the judgment of Joseph Schumpeter, one of the twentieth century's finest economists, in his monumental 'History of Economic Analysis', Allen and Unwin, 1954, p.689.


Henry Now...


Henry Thornton is the nom de plume of a prominent economist. Like his predecessor the modern Henry Thornton has been a banker and an advisor to M.P.s although he is not a politician himself. He is no evangelist but is keenly interested in a wide range of economic, social and political issues... 

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