The US Government Is On Track to Top Last Year’s Record-Breaking Deficits
Something is going to break, and when it does, the aftermath will be breadth taking. If you think the government can spend money on stupid things, encourage people not to…
The Fed’s Balance Sheet: The Other Exponential Curve
As the threat of COVID-19 keeps millions of Americans locked down at home, businesses and financial markets are suffering. For example, a survey of small-business owners found that 51% did not…
Everything You Wanted to Know About Inflation but Afraid to Ask
If the supply of caviar were as plentiful as the supply of potatoes, the price of caviar — that is, the exchange ratio between caviar and money or caviar and…
GDP Growth Isn’t the Same Thing as Economic Growth
To gain insight into the state of an economy, most financial experts and commentators rely on a statistic called the Gross Domestic Product (GDP). The GDP framework looks at the…
Turkey’s Debt Crisis is a Bigger Risk to the Eurozone than the PIGS
This article is for registered members - please login or click here to subscribe or register for free.
Inverted Yield Curves, Recessions
We have read a lot about the yield curve these days. The yield curve is simply a graph of interest rates as a function of time to maturity. Historically, recession follows…
Economic Busts Can Happen in a Free Market. But Central Banks Make Things Much Worse.
Friedrich Hayek, the great Free-Market Economist won a Nobel prise in economics for his work on the causes of the business cycle. Hi works showed that the Fed is the…
Negative Interest Rates are the Price We Pay for De-Civilization
We have talked a great deal about negative interest rates and not they are both unnatural and damaging. We think negative interest rates can only arise in a world of…
There is more to the Economy than GDP, Jobs & Wages
There is more to economics than jobs, wages, consumption, exchange rates, inflation rates, GDP, etc. Economists like to talk about these things because they and/or the government can measure (sort…
Boom-Bust Cycle
The Boom-Bust Cycle is alive and well. Mainstream economists have all kinds of reasons and excuses for these cycles. The diversity of reasons for the boon-bust cycles stems from the…