Is diversification the heart of investment?
byAccording to the Modern Portfolio Theory (MPT), financial asset prices always fully reflect all available and relevant information, and that any adjustment to…
Economics
Milton Friedman and the New Attack on Freedom to Choose
byWe are in the midst of an open counterrevolution against liberty and limited government in the United States. This may sound like strong language…
Keynesian ideas can only make things worse
byIn the New York Times on September 8, 2020, Paul Krugman suggested that “The CARES Act, enacted in March, gave the unemployed an extra…
Inflation and Marxism
by“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch its currency….Lenin was certainly right. There…
America’s Fiscal Follies are Dangerously in the Red
byThe Congressional Budget Office has recently issued a federal “Budget Outlook Update” for the next ten years in the context of the government’s fiscal condition in…
Why trade balance is not the essence of currency exchange rate determination
byIn July this year the US trade balance stood at a deficit of $63.6 billion against a deficit of $51 billion in July…
Step-change at the Fed – Reaching for the stars
byThe Federal Reserve has changed the emphasis of their dual mandate Inflation targeting will become more flexible in the long-run Full employment has…
UNIDOS HACIA EL FUTURO
by“The markets are the product of 1999 & 2007 hooking up for a one night stand.” Tweet by Danielle DiMartino Booth (@DiMartinoBooth), 25th August…
An interesting animation on Rothbard’s theory of the Great Depression
byThis is well worth watching and nicely animates the analysis in Rothbard’s classic “America’s Great Depression”. https://www.youtube.com/watch?v=b0SW3BgwL14
The Social and Economic Side Effects of Negative Interest Rates
byOur world is currently suffering from acute schizophrenia. Banks are pushing impact and sustainable investing like crazy, companies are subordinating their production sites and…