Capital flows to where it’s treated well. Remember this amid President Trump’s endless jawboning of Jerome Powell. According to Trump, along with his various cheerleaders inside and outside the administration, the Fed’s failure to lower its funds rate is what is holding back an even bigger boom. If you deduce from this that it’s […]
If Trump Economy Is “Booming,” Then It Doesn’t Need The Fed Read More »
“Recession” is a relative concept. For instance, when the U.S. economy contracts such that Americans merely tighten their belts, hundreds of millions around the world face starvation. If you doubt this, consider the global implications of the U.S. mindlessly going into lockdown mode in 2020. Not only was economic contraction as a virus mitigation
When the U.S. Takes a Break From Reality, Millions Don’t Eat Read More »
“We are living in a moment of existential dread and alienation caused by the savagery of social media, the ugliness of our politics, the AI takeover, our melting planet, a winner-take-all economy…” Those are the words of Washington Post columnist Dana Milbank. He doesn’t lack for certitude. Most of us can’t develop a read of the
Beware the Pundits Who Think They Speak For Us Read More »
Silicon Valley VC legend Don Valentine purchased a 33% stake in Cisco decades ago for $2.5 million. Cisco is one of the many great investments made by the VCs at Sequoia Capital, and it’s worth thinking about with Cisco’s $271 billion market cap top of mind. How did Valentine and Sequoia get so much
No, Jerome Powell Is Not the Hero of Today’s Economy Read More »
The Fed can never be independent. Economists should spare readers of any further commentary calling for what can’t be. Long before the Fed existed, and just the same to this day, there were and are all manner of private, profit-motivated sources of credit ready to liquefy financial institutions enduring near-term liquidity problems despite quality
Say It Routinely, The Fed Isn’t Nor Can It Ever Be ‘Independent’ Read More »
Debt is an effect of wealth, not desperation. That’s true for individuals and corporations, but also governments. The power of compounding vivifies this truth, and explains why Apple has lots of debt but the corner store doesn’t, and the U.S. has tens of trillions of debt, but Haiti next to nothing. The Washington Post’s
There’s No Such Thing As ‘Exorbitant Privilege,’ There’s Just Production Read More »
Low and falling birthrates are not an economic threat. Not remotely. The latter is not a Malthusian or Paul Ehrlich-ian statement as much as it’s a statement about production. The babies being born today will grow up and individually produce at levels that would have literally required thousands, and realistically tens of thousands of
Low Birthrates Are a Market Signal of a Rich, Rich Future Read More »
“What will you say about Trump and his tariffs if he gets high-tariff countries to zero?” Trump supporters have asked the previous question endless times since “Liberation Day” and surely before. The answer is simple: we’ll be worse off. We will be because the question is nonsensical. Americans will be the losers of Trump’s
Even If Trump Gets Them to ‘Zero,’ Americans Will Be Worse Off Read More »
Presidents get the dollar they want, and George W. Bush wanted a weaker one. Bush’s departure from the Reagan/Clinton era of a largely strong, stable dollar as a measure of constant objective value was one of his worst policy decisions, and it’s one that no president subsequent to Bush has chosen to reverse. When
George W. Bush Lit Dollar Fire On Which Trump Throws Match Read More »
Particularly amid the economic difficulties brought on by President Trump’s tariffs, there’s growing urgency within the Republican Party to mitigate the tariff damage with an extension of the 2017 Tax Cuts and Jobs Act (TCJA). Unknown is why. The tax cuts were Keynesian in design, hence not economically stimulative. Evidence supporting the above claim
What’s So Great About the ‘Tax Cuts and Jobs Act’? Read More »
