Three little words
“As I’ve written in past memos, I have an indelible recollection of the first book I read as a Wharton freshman in 1963. The…
Read MoreEconomics
There Will Be No Recovery Without Production
Through most of the coronavirus crisis, those who have made the case for stay-at-home, reduce or stop work, and narrow the range of retail…
Read MoreSupply, demand and prices
Here is a typical statement regarding supply and demand: “if the demand for any product increases, given the existing supply, the price of that product…
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Statistical misdirection
Economists who understand credit cycles expect the current cycle to enter its crisis stage at any moment. Furthermore, it combines with increasing trade tariffs…
Read MoreTargeting nGDP Targeting
Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
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FinTech Companies; little innovation and no reform of banking
New entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations….
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Inflationary financing and GDP
This article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Read MoreThe Financial War Escalates
Behind the scenes, the financial war between America and China is escalating dangerously into a war to secure global financial resources. At a time…
Read MoreStatistics and the facts of economic reality
The government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and…
Read MoreForget velocity of money circulation
If there is one concept that illustrates the difference between a top-down macro-economic approach and the reality of everyday life it is the velocity…
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