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KeithGram: Big Debt in Little China

There is an article in the Financial Times (http://www.ft.com/intl/cms/s/0/35bb9e50-6a13-11e2-a7d2-00144feab49a.html#axzz…) about debt problems in China.

I have taken the liberty of summarizing the key points:

 – Local governments borrowed to buy unneeded “infrastructure”
 – They acted under orders from Beijing
 – Unable to pay, they “rolled the debt over”
 – Li says it’s OK, it takes time to amortize
 – Yiping says it’s fine when duration is mismatched
 – Peng says everyone does it
 – Most banks refuse to lend any more
 – Premiere Wen says “everything is under control”
 – He adds “most debt is backed by good assets and cash flows”
 – Officially, there is little debt

 – Unofficially, there is little transparency or accountability
 – Ultimately, the debt problem falls onto the central government  

 

An Allegation of Plagiarism

An allegation of plagiarism, which is a serious charge, has been made against me.

Writing about my paper (The Unadulterated Gold Standard, Part III), Hugo Salinas Price, a respected thinker in the gold and silver community, published an article on Christmas Eve (Keith Weiner plagiarizes).

He states: “The intellectual work of Prof. Antal E. Fekete, Dean of the New Austrian School of Economics, has been plagiarized by Keith Weiner…”

According to the Oxford English Dictionary, an act of plagiarism means to: “v. Take (the work or an idea of someone else) and pass it off as one’s own.”

Mr. Salinas Price continues: “Not one word of recognition is afforded to the author [emphasis added], by Weiner.”

This implies that Professor Fekete is the author of my paper.

Mr. Salinas Price does not quote either from Professor Fekete’s paper or my own nor does he provide evidence.

Even if Mr. Salinas Price means that I do not credit Professor Fekete as my teacher in monetary science, this charge is also untrue.  Until Professor Fekete awarded my degree, my bio stated I was “a student at the New Austrian School of Economics, working on his PhD under Professor Antal Fekete”.  Now, it says “he has his PhD from the New Austrian School of Economics”.

In numerous papers, from the first I published (Fractional Reserve Banking) to my dissertation (A Free Market for Goods, Services, and Money) to the most recent on Dec. 22 (Reflections Over 2012), I credit Professor Fekete and cite his papers.  This includes my submission to the Wolfson Economics Prize (Gold Bonds to Avert Financial Armageddon).

I clearly, openly, and repeatedly state that I am an Objectivist, which means that I credit Ayn Rand for my philosophy including ethics and my view of capitalism.  I also acknowledge Professor Fekete as integral to the development of my thinking in monetary science.  The ideas of both Rand and Fekete are obvious in my writings.

I hope this statement clarifies this issue and demonstrates that I take what I write seriously.  However, under the circumstances, because he has presented not a shred of evidence to support his inflammatory charge of plagiarism, I think Mr. Salinas Price should apologize.

Meanwhile, the world faces a grave threat.  The monetary system is moving inexorably towards collapse (When Gold Backardation Becomes Permanent). Those who love civilization have serious work to do.