Economics

Caroline Baum, one of the best financial reporters out there, has a new column today about the Fed. I recommend it highly. The article is about a new book by Robert Auerbach, Professor at the University of Texas, Austin called "Deception…

Yesterday, in a post entitled "De-leveraging," I argued that credit writedowns and the resulting deleveraging are highly deflationary. This is the core of the problem with the global financial system. I want to expand a bit on that…

Global financial institutions are deleveraging because they can't build enough equity capital any other way except by going to Asian and Middle Eastern sovereign wealth funds, cap in hand. So, the Fed and the Bank of England (BoE) have…

The term deleveraging is one bandied about a lot in the press recently. But, what does it actually mean? De-leveraging is the process by which financial institutions and investors reduce the relative size of their assets to equity ratio.…

Caroline Baum was asking in her column today: "How can a 2 percent funds rate be appropriately calibrated to promote moderating inflation when inflation is currently rising at almost 4 percent?" The answer: it can't. The Fed is all about…

A great article on the website Safe Haven asks the important question: Can you trust the government's data. I had the same question in a post called "Last week's GDP numbers." Here's what Michael Pento has to say in his article:The…

As the Fed Funds rate gets close to zero, pundits have been worrying about a pending liquidity trap. While I think these worries are well placed because the Fed is running out of bullets, I am more concerned about inflation right now.…

Today, as I write this blog entry, the U.S. Economy is in crisis. We have a massive consumer and mortgage debt problem. Gasoline and food prices are going through the roof. The U.S. dollar is plunging. People are losing their jobs and…

Steve Hanke, a libertarian economist who writes for Forbes, argues that the Fed is panicked about the economy in a piece that came out today. He believes they have lowered the Fed Funds interest rate to where inflation is now a problem.…

This is a story of unequal re-distribution of wealth from the less fortunate to the more fortunate. This is a story of the United States in which the rich get richer at the expense of everybody else. At the conclusion, ask yourself: is this…