Economy is Ok
The government just released the latest GDP figures on Friday, and the results caught the mainstream (read: Keynesian) economists by surprise. Recall that they have been hitting an unrelenting drumbeat…
Sharp Fiscal Cuts Reduce Inflation, But Increase Recession Risk
Government waste, fraud, and abuse, combined with the sheer size of government, contribute to higher costs and inflation in several interconnected ways. Wasteful spending diverts resources from productive uses, whether through…
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…
Stock Prices | A Battle Between Optimism and Pessimism
The battle between optimism and pessimism is playing out in full regalia. After falling about 5.9% last week, the S&P500 rocketed 2.7% higher yesterday, putting in the best one-day performance in…
Fed Statement & Its Impact on Our View of Interest Rates & the US Dollar
The Federal Reserve had a meeting and issued a statement yesterday. We did not learn very much, but we did learn that the Fed has finally stated that the economy…
The FED Does Not Set Interest Rates & Is Not Data Dependent
If you listen to the investment strategists, fixed-income specialists, financial press, politicians, and employees of the Federal Reserve System, you would think that interest rates are under control of the…