Role of Government

As an economics professor at the Naval Postgraduate School and former advisor to President Reagan, Henderson shatters the stereotype that individuals who comprise the anti-war movement all drive hybrids and listen to NPR.

But capitalism and non-interventionist foreign policy go hand-in-hand, he says. Just as the government shouldn’t intervene in the economic affairs of its own citizens, he says, it also shouldn’t intervene in the political affairs of foreign nations.

>The Federal Reserve had to do some fancy footwork Friday to rush its margin support to Bear Stearns, judging by a sketch of the operation provided by a senior Fed staffer. David Henderson, a research fellow with Stanford’s Hoover Institution, said the Fed should let Bear Stearns fail because all the investments involved are complex financial paper being swapped back and forth among high-rollers who are capable of working out deals themselves.

Outlining in Perth today a five-point plan to fight inflation, the Prime Minister will set a new target for the budget surplus of 1.5per cent of the nation’s gross domestic product. These measures would have the potential to take pressure off home interest rates by slowing the surging pace of consumer and business spending that has the Reserve Bank worried.

It was one of those rare, particularly sunny days in Vancouver in September when, addressing an audience at the University of British Columbia, I suggested that official multiculturalism and its partner in crime, moral relativism, were leading to the demise of Western...