Who Do You Believe? The Fed Or Your Lying Eyes?

“Inflation Is Back at Highest In Over A Decade,” The Wall Street Journal. “New Price Spike Poses Challenge To White House,” The New York Times. “O my prophetic soul,” Hamlet. You don’t have to be pushing a shopping cart, or trying to hire staff, or worrying if the goods you ordered from China or Vietnam […]

They Also Serve Who Only Float And Wait

The presidents of the regional Federal Reserve banks of Dallas and Boston resigned when it was revealed they have been trading heavily in assets the values of which are sensitive to the Fed’s interest rate policies – of which they have intimate knowledge and which they help to formulate. No Fed rules barred such trading. […]

Delta the Demand Deferrer

America appears to be in a mess. The anti-Vax résistants are succumbing to the Delta variant in droves, which would be acceptable – freedom includes the right to make bad choices – were it not for the fact that they are over-loading hospitals and making it impossible for non-Covid patients to receive treatment for their […]

Delta Up, New Jobs Down

The American economy added a mere 235,000 jobs in August, perhaps one-third of what economists were predicting. Experts reckon that the Delta virus reduced job creation by about 600,000, as workers with child-care responsibility stayed home, and those exposed to contact with the public preferred the safety of their homes to the risk of taking […]

Fed Chairman Jay Powell is Biden His Time

A virtual meeting of the worlds central bankers lacks the glamour and gorgeous background setting of America’s Rocky Mountains. But that did not dampen Fed Chairman Jay Powell’s willingness to take a virtual victory lap when he spoke at the end of last week. He announced that “the baseline outlook is for continued progress toward […]

America The Glum

“Nobody can be a great economist who is only an economist – and … the economist who is only an economist is likely to become a nuisance if not a positive danger.” So wrote F.A. Hayek over 60 years ago. Not wanting to be a nuisance, I take the great man as my guide today. […]

50th Anniversary: Nixon Slams America’s Gold Window

Exactly 50 years ago today, on August 16, 1971, the world awakened to find the international financial and trading system in place when went to bed, gone. The previous evening, at 9 PM on the East Coast, when the markets were closed, President Richard Nixon destroyed the system that had been set up in Bretton […]

Don’t Accuse Joe Biden Of Having A Little Mind

“A foolish consistency is the hobgoblin of little minds, adored by little statesmen…” wrote Ralph Waldo Emerson 180 years ago. No one can accuse Joe Biden of such foolishness or, if he has his way with History, of being a “little statesman”. He has recently issued a spate of orders designed to re-introduce competition to […]

Powell Prepares His Sermon On The Wyoming Mountains

Reality bites. And at a decidedly inconvenient time for Federal Reserve Board chairman Jay Powell. In a little more than a month he will be meeting with his international peers at their annual meeting in Jackson Hole, Wyoming. He must decide whether to compete for the Banality-of-the-Year Award by repeating that the Fed will continue […]