Category Archives: Inflation

The Unvirtuous Cycle of Rate Cuts

Trying to artificially control things like interest rates without understanding the underlying economic realities leads to an unvirtuous cycle full of unintended, and often unpleasant, consequences. Over the last 112 years this has resulted in a steadily declining dollar and massive debt and deficits. Continue reading

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A World Of Fiat

There has been a lot of discussion lately about America’s massive trade deficit and how President Trump’s tariff policies are intended to shrink it down while returning manufacturing to the USA. What isn’t often mentioned is how this massive trade deficit ever came about to the extent that it has to begin with. If the world still operated on a gold standard these mega imbalances would have been impossible. Continue reading

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Powell Holds the Line

This week, as expected, Powell and the Federal Open Market Committee (FOMC), held the federal funds rate at a target range of 4.25 to 4.5 percent. Of note, two members of the FOMC dissented from the majority decision. Continue reading

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Warming Up the Printing Presses

Trump’s ‘Big, Beautiful Bill’ will add an additional $3.8 trillion on top of what was already projected to be added to the national debt. So instead of the national debt increasing by $22 trillion to $59 trillion over the next decade, it will spike to nearly $63 trillion. Continue reading

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