Critics of so-called “isolationism” claim a desire to stay out of conflicts like Ukraine are rooted in veneration for Donald Trump and/or Tucker Carlson, partisan disdain for Joe Biden, fear that the U.S. is too weak for global involvement, too broke, or that non-interventionists want to save money, bombs and bullets for the supposedly inevitable war with China over Taiwan.
At the Wall Street Journal, Fed-watcher Timiraos writes that with government measures of inflation having “fallen much faster than expected,” nominal interest rates “adjusted for inflation” have “risen and might be restricting economic activity too much.” He worries that the nothing of notion of “rising real rates” signals great peril for the U.S. economy, and the Fed that allegedly plans it. The good news is that rates aren’t uniform because people aren’t.
This will cause some heads to explode within the various free-market and interventionist religions, but market forces born of production decide which currencies circulate, not central banks or presidents. Which means Javier Milei is wise to not dollarize.
When banks acquire capital expensively, they don’t just acquire cash. They put it to work, albeit in securities approved of by regulators. Highly liquid securities. Think government bonds, or more specifically U.S. Treasuries.
To a high degree, Arizona has been made great by people who appreciated the state’s less government is better government approach to governing.
The happy, market truth is that no individual, no business, no city block, no city, state, or country ever needs to worry about having too much or too little money.
In her latest opinion piece for the Washington Post, economics writer Heather Long observed about Federal Reserve Chairman Jerome Powell that “Many had predicted he would be Dr. Doom who caused a recession.” Yes, many predicted just that, but not all.
In short, California already has a wealth tax whereby it arrogates to itself far too much of the fruits of rich people and rich company production. There’s the cause of the debt. Simple stuff.
What’s a more immoral leave-behind to the sainted “grandchildren”? Debt that investors line up to purchase at the lowest rates in the world, or a massive, resource-swallowing government that achieved gargantuan size without any debt?
FTC Chair Lina Khan’s aversion to big is well established, as is the EU’s. Imagine if Khan had headed up the FTC in the 1990s? Other than her age, the notion isn’t outlandish.