Classical Economics in a Quantum World
The Shanghai International Energy Exchange, INE, began trading oil futures denominated in yuan, today, March 26, 2018. I wrote about the upcoming significance of this event in China, Gold, and the Dollar. The initial report was that yuan petro futures…
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George Gilder has authored a prescient piece that succinctly sums up the challenges that the Trump administration faces in righting the global economic system. Titled Trump Can Succeed On Trade By Ending Global Currency Manipulation, Gilder gives fair warning that the…
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For sure, trade is not free. Tariffs are a means to raise revenue to fund government. There is nothing wrong with that. Tariffs funded the U.S. government almost exclusively until the introduction of the income tax in 1913. Combined with…
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The problem with free trade arises from the beggar-thy-neighbor belief that competitive currency devaluation results in a trade advantage. Without stable currencies that remain equal in value–an international gold standard–free trade becomes a race down the devaluation road. Then the…
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The monetary reference point is where debtors and creditors are in balance. There is no inflation or deflation and neither creditors or debtors benefit at the expense of the other. There is no risk penalty added to terms of trade…
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A funny thing happened on the way to global central banks usurping the market and centrally commanding the price of interest. Economic events began to occur that the history of economic thought never considered. Negative interest rates is one. An…
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We are reaching a global denouement after 45 years of fiat monetary manipulation. Whether this will result in a Reagan-like economic rescue and continuation of American prosperity or a Great Depression-like global meltdown followed by social chaos, government mistrust, and…
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First, conventional wisdom floats “secular stagnation” and the “end of growth” as the policy failure excuse du jour. Quite the “conundrum”. Now to add insult to injury, Peggy Noonan informs us that we have entered the age of the end of…
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