Category Archives: Government Debt
How to Turn a Corporate Credit Crisis into a Currency Crisis
The mechanics of persistently falling yields (as yields move inversely to price) over several decades have also acted to inflate a massive bond bubble. The demand for corporate bonds come from a variety of sources. These mainly include foreign investors, investment funds (i.e. mutual funds, ETFs, and closed end funds), life insurance companies, and pension funds. Continue reading
Black Lives Matter: An Immodest Suggestion
Here at the Economic Prism we hesitate to offer advice. We don’t know the answers. We hardly know the questions. But we do observe, contemplate, and reflect. And as far as we can tell the BLM movement is empty of ideas and without direction. Hence, from a place of modesty, we offer an immodest suggestion. Continue reading
Game Over Spending
Second quarter 2020 came and went like a California wildfire. The economic devastation caused by the government lockdowns was swift, the destruction immense, and the damage lasting. But, nonetheless, in Q2, the major U.S. stock market indices rallied at a record pace. Continue reading
Living On Borrowed Time
Practicality the entirety of Congress now believes that the ability to pay should not limit the ability to promise people whatever they want. There’s no poll of members of Congress to support this assertion. We base it on what they’ve communicated by real, material actions. Continue reading
