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July 24, 2016

Love and Friendship.


Adapted from Lady Susan, a novella by Jane Austen. Director: Whit Stillman

Love and Friendship is based on a novella written by a 19-year-old Jane Austen.

Financial security is definitely the theme that dominates Love and Friendship, for in Austen’s...

June 26, 2016

If the constitution of our polity cannot be settled by our parliament, so much less the constitution of the family.

There must be people who just shake their heads and pinch themselves.

Where’s that same-sex marriage thing coming from?

How come advocating it has become a...

June 18, 2016

We travelled to Naples by train from Rome. 

We navigated the usual scrum to get on to the train with luggage, stow it and find our seats. The train from Rome was genuinely fast and we wondered again why a rich nation like Australia has no fast trains. The taxi ride to o...

June 5, 2016

A reader has commented on the first report of Henry’s 2016 liason expedition. ‘We too noted incredible civility and politeness on our trip – not only in the hotels but also on the street, with folk actually taking us to where we wanted to go. I think web pages such as...

May 27, 2016

A reader has commented on the first report of Henry’s 2016 liason expedition. ‘We too noted incredible civility and politeness on our trip – not only in the hotels but also on the street, with folk actually taking us to where we wanted to go. I think web pages such as...

May 18, 2016

Henry and Mrs T embark on the greatest 'liaison trip' of all time. First stop New York in the spring.

'Spring revival' says the Wall Street Journal. Yes I know we could read this in Melbourne, but we'd be diverted by the political shenanigans in our very own Banana Repu...

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NEWS + VIEWS

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.

 

Henry.Thornton@henrythornton.com

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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