economy

Contra the Washington Post, Exports Are a Bullish Sign of Imports

“The world is being swamped with Chinese goods, and the United States, Europe and Japan are right to worry about it.” Those are the opening words of a recent Washington Post editorial about Chinese production. The bet here is that the writers of the editorial could be persuaded to rethink their pessimism. Production is always bullish, by definition. […]

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The Capacity for People to Prosper Is Limitless

Washington Post columnist Catherine Rampell writes that Scott Bessent “is using all the budget high jinks at his disposal to produce a pseudoscientific plan that’s rosier, more magical and more paper-thin than the past several decades of GOP budget fantasies.” As a former macro trader, Bessent would no doubt share Rampell’s disdain for rosy economic plans after

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A 2025 Resolution For Fed: Have The Courage To Do Nothing

“The traditional argument against a rules-based monetary policy is that it requires Fed officials to specify too many contingencies ahead of time.” Those are the words of economist Jason Furman, chairman of Barack Obama’s Council of Economic Advisers from 2013-17, and Harvard economics professor at present. The bet here is that Furman could be persuaded to

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Deportation of Mexicans Will Result In More Mexicans In the U.S.

The view here is that mass deportation of Mexicans from the United States will ultimately result in quite a few more Mexicans searching for a way to get to the United States than before. It’s basic economics. Regardless of ideology, please read on. “I build their dream houses. That means I depend strictly on

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The Fed’s Critics vs Fed: Central Planners vs. Central Planners

Repeat it over and over again: there’s no interest rate, and there’s no such thing as interest rates. There are individuals, and individuals face a myriad of borrowing costs as numerous as there are people. The Fed can’t nor does it make credit easy or tight simply because an economy is people. And the

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For the Adult Chi Chi Rodriguez, Christmas Was Every Day

“I love kids because I was never a kid. I was too poor to be a kid.” That’s what the late professional golfing legend and personality Chi Chi Rodriguez told Sports Illustrated. What Rodriguez said about his own childhood (he was born in 1935) is apt on Christmas Day. Particularly for kids who can’t sleep

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Joe Biden and Donald Trump Threaten U.S. Steel’s Existence

Never turn down capital when it’s offered to you. The previous axiom is easily as old as business. The wise refuse what’s precious precisely because they know well that tomorrow is another century. To see why, look back to February of 2020. At the time, unemployment was at all-time lows and stock markets were

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De-Regulation Is the Way for DOGE To Have a Real Impact

While politicians frequently and incorrectly demagogue trade as harmful, the enterprising in the proverbial arena have long been looking for ways to bring people closer together not just so that they can exchange goods and services, but also so that they can divide up work that enables the production of exponentially more in the

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The Surest Sign of Tight Credit? When Central Banks Go to Zero

There’s no such thing as “easy money” or “costless credit” contra what readers are told with great regularity by economists and their enablers in the commentariat. Evidence supporting this statement of the obvious can most easily be found in the powerful force that is compound interest or returns. Precisely due to the power of

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Without a Stable Dollar, Trump’s BRICS Demands Will Be Toothless

“We require a commitment from those countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.” As readers can hopefully gather, President-elect Donald Trump

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