05 March 2013

The Market Price of Corruption: Real Rates, the Real Yield Curve, and the GDP Gap

"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank...You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."

Andrew Jackson, Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels

What is the market price of policy error, careerism, and corruption?

The charts are simple, but the implications are profound.


  1. Profit made by a government by issuing currency
  2. A thing claimed by a sovereign or feudal superior as a prerogative.