Debt Debacle

Sometimes the current economic pundits talk about our current debt and indicate that it is not as severe a problem as others think.  This in spite of the fact that even those in the current administration do give lip service to the notion that the deficits and debt growth are “unsustainable”.    They just want to [...]

King Dollar and Diplomacy

This is not a polemic on politics but rather a discussion about economics, numbers and the international relations and effects of the US currency and its perceived worth around the world.    In the Wall Street Journal and other economic news outlets there has been substantial discussion of recent days about the decline of the dollar [...]

D. C. –Central Command and Control For Economy

The progressive march toward D. C. controlling greater portions of our economy has been moving steadily forward since the time of FDR.  There have been a few short eras of retrenchment but the floodgates were opened when the Supreme Court adopted a “no limit” on the interstate commerce clause of the Constitution in the ’30’s.   [...]

Trade Wars, Tariffs and History

There is much flap in the news now about the recently imposed 35% tariff the current administration has imposed on Chinese tires imported to the US.  As expected the Chinese are unhappy and already grumbling about retaliation for our moves.  They will take counter action. I wouldn’t predict what it will be but they will respond [...]

Stimulus Spending and 1983

Quite often in the last several weeks defenders of the administration’s stimulus plans, bank and auto takeovers, cap and tax and health care reform have made references to how our economy was in 1983.  They especially use the data regarding unemployment from that time to justify the current policies and proposed policies.    Inflation was still high [...]

Government, Inc. With One Checking Account

Government, Inc. has been spending money like there is no limit to what we have or what we can afford.  I noticed on the news today that the majority of economists think the monetary policies of the Fed have been about right but that a majority of them do not like the fiscal policies of [...]

Clunk Goes The Cash, Up Goes The Votes

I think it is quite important that the US maintain a strong heavy industry and manufacturing base.  I have nothing against the auto industry as an industry and believe it is a good thing that we make many products for consumers here and around the world.  I am not supportive however of Government, Inc. owning [...]

Numbers

Numbers have always played a significant role in the news of the day.  If there is a natural disaster we want to know how many people were injured or killed, how many homes were destroyed, etc.  If there is a war going on we like to have the casualty reports of dead and wounded.   The [...]

U S Credit Rating or Does the U S Rate?

Well, we finally got the news that Moodys has given the US a triple A rating for its debt obligation. This is primarily the Treasury notes and bills.  Certainly since WWII the US has been the premier economy in the world and long considered the safe haven for money and the safest and most profitbable [...]

T-Bill Glut Crowds Out Equity

Only this week the Treasury auctioned off another 71 billion of Treasury notes and bills.   That is a small part of the hundreds of billions they intend to issue during this calender year.  They have already issued over 300 billion this year to date.  In addition to that fact we have the Federal Reserve printing [...]