Part two of a two-part series on the repo market. So the Federal Reserve Board buys bonds, creating trillions in cash, which it then pays interest on to banks, who…
The Bond Market’s Plumbing Springs a Leak
Part one of a two-part series on the repo market. “A lot o’ people don’t realize what’s really going on. They view life as a bunch o’ unconnected incidents ‘n…
Mismeasuring Inflation
Part two of a two-part series on the Fed’s approach to inflation. In our last post we noted the Federal Reserve Board’s obsession with trying to achieve 2% inflation. Not…
If You Think Inflation Is Too Low, You Must Be an Economist
Part one of a two-part series on the Fed’s approach to inflation. Part two will appear next week. There’s probably not a consumer in America who worries about prices being…
The Fed’s Fundamental Failure
We can debate how much impact massive Fed intervention had on the economy as it recovered from the Great Recession, but one thing that’s undebatable is that the Federal Reserve…
Modern Monetary Theory – Deficit Thinking
If you think Greece should serve as an economic model for the United States, you’ll love modern monetary theory (MMT). MMT advocates like Congresswoman Alexandria Ocasio-Cortez (AOC) (need I say…
Something for Nothing
In his inaugural address, President John F. Kennedy inspired Americans to pursue public service when he said, “Ask not what your country can do for you – ask what you…
Capitalism vs. Socialism
This Independence Day, it’s worth reflecting on the juxtaposition between Hong Kong and China. Hong Kong has embraced capitalism perhaps more than any other country in the world. So an…
Tesla Unplugged
What happens when a company depends on the largesse of the federal government to survive? Tesla may soon find out. We wrote about Tesla in August 2018, noting that the…
Economic Freedom Improving in the U.S.
When we last wrote about the Index for Economic Freedom, the U.S. had dropped to #18 in the world. A year later, it has leaped forward to #12. That still…