Category Archives: Economy
Winnie the Pooh’s Adventures In Fairyland
Up until the Evergrande Group began stiffing creditors, Xi Jinping had it made. But being a communist dictator is serious business. And when the Ponzi finance structure underlying your country’s second largest property developer begins cascading down it’s no laughing matter. Continue reading
Pipe Dream Economics
Fiscal policy, as opposed to monetary policy, is more readily understood by the average working stiff. Income taxes, budget deficits, the national debt. These are all tangible things people can grasp a hold of, if they care to. The consequences of zero interest rate policy (ZIRP) or quantitative easing (QE), however, are less obvious to the casual observer. Continue reading
One Lockdown from Disaster
Implicit to the planner’s toils, is a shared sense that they know how to spend your money better than you. At best, the central planners call your money to Washington so they can then distribute it back to your friends and neighbors. In reality, the lawmakers call your money to Washington where they distribute it to their friends and neighbors – not yours. Continue reading
Is the Great Post-Pandemic Boom a Great Big Dud?
Prices, remember, are information. And when that information is falsified by an abundance of fake money, businesses and individuals are compelled to do things that would otherwise be nonsensical. Of course, the market with the most falsified prices – the credit market – is also the most prone to compelling destructive behavior. Continue reading
