© 2019 by Henry Thornton. 

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October 17, 2019

Modern Crucifixion

 Oil on canvas board

24 '' x 16 "

Signed, Left Hand Side

Cardinal Pell's trial, where he was declared guilty by a jury of pedophile actions, was a deeply curious event. I expect appeal before by three judges will present a more believable judgment o...

June 28, 2019

Check out Pete's 2018 exhibition of EcoArt here.


Geoffrey Blainey

Oil paint on canvas

550 cm X 750 cm

Signed bottom left, 2019

Geoffrey is the artist's great friend, in my view one of the great historians of Australia with a wonderful feel for matters economic.  As well as...

September 8, 2018

When God is reduced to The Cosmic Therapist and we combat the culture wars' defeat of Christian conservatives with a middle-class moralism that prescribes being happy with oneself and nice to others, as Rod Dreher's The Benedict Option  argues, we are bringing knives t...

October 18, 2016

A lifetime's hard work, mostly pro bono. 'Thank your mother for the rabbit' type of activity.

Contents

Preface

1. Practitioner

1.1  On the edge of chaos, 1995

Biographical account of the rise and fall of a central banker

1.2  Money, Prices and Output, 1975.   [Link to be pro...

October 4, 2016

Henry’s readers are no doubt aware that ASX: MINING has comfortably outperformed all other sectors, especially the BANKS & TELCO. The reason that the Raff can think of for the outperformance of the likes of BHP and South32 is that stocks in this sector got sold down he...

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 14, 2016

Larry Summers has said: ‘If interest rates are negative, all the verities are up for grabs'

Mervyn King has warned: ‘The economy is behaving in ways we did not expect, and new ideas will be needed if we are to prevent a repetition of the Great Recession and restore pros...

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...

August 21, 2016

Another big week of private sector economists and businesspersons pleading with the Turnbull government to behave like a serious government.  Paul Keating’s heroic effort to turn the budget deficit into a surplus to head off ‘Banana Republic #1’ cannot be overemphasise...

August 20, 2016

Henry's editor, Pete Jonson, has recently decisively wound back his corporate involvement. He is now fulfilling the promise he made to himself as a young part-time landscape painter that he would, later in life, spend more time painting. This time has arrived; and Pete...

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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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