The Phillips curve, which charts an inverse relationship between unemployment and inflation, was proven unreliable during the 1973-1975 recession, when we had stagflation — the combination of high unemployment and…
Central Planners Wrong Again
Based on action by central bankers, the euro should be weakening relative to the dollar, yet just the opposite is happening. The Federal Reserve Board has been raising interest rates…
At a Loss over Profits
Apparently, there are two Americas. In one, corporate profits are soaring, the economy is booming and jobs are available for the asking. In the other, corporate profits are dismal, America…
To the Back of the Queue
If I go there will be trouble And if I stay it will be double So come on and let me know Should I stay or should I go? The…
Upending the World
Logic has taken a 180-degree turn, running at full sprint in the opposite direction from where it should be. As one small example, consider the good fortune of Hans Peter…
Going Negative
“More money cannot cure what too much money created.” Frank Hollenbeck There’s nothing…
ECB: Cheap Oil Is the Problem, Not Iran’s Nukes
If the European Central Bank (ECB) is to be believed, the biggest threat from the Middle East is not Iran getting nukes, it’s Saudi oil. What’s the big deal? Saudis…
China’s Fix Could Break Things
Imagine if free markets were allowed to be free. Of course, in today’s world, they’re not. Central bankers and government agencies have taken control. Not knowing what to do with…
Big Board Floored
The Big Board is not so big anymore. A decade ago, it accounted for 80% of stock trades. Today, it accounts for 20%. There are also far fewer publicly traded…
Central Bankers: Masters of the Universe
Earlier this month, along with our usual dire observations about an economy that has come unhinged, I noted that the world was not coming to an end. On closer inspection,…