Commentary We would all welcome good economic news. Even better, we would welcome a healthy economy. We have now a headline number that seems fine—an inflation-adjusted increase in Gross Domestic Product annualized at 2.6 percent. But right now, we are nowhere near finding our way back to economic health. The worrying signs are everywhere. The…
How Good Is the GDP News?
US Needs Tougher Laws Against Federal Stock Traders
Commentary The U.S. federal government has over 1.8 million civilian employees and over 1.3 million active duty military personnel. Many have access to confidential information that could be traded in the stock market to give an edge against taxpayer stock traders who pay their salaries. That’s just wrong. A major Wall Street Journal study, published…
Investing During a Recession
Commentary Multifamily homes have been a great investment over the past two years. While the initial shock of the pandemic caused some concern about who could pay rent and what why would do if they couldn’t pay their rent, those concerns were largely allayed by the end of 2020. Smaller and mid-sized cities saw an…
The Treasury Market Is the Fed’s Next Crisis
Commentary The Federal Reserve’s next crisis is already brewing. Unlike 2008, where subprime mortgages froze counter-party trading in the credit markets as Lehman Brothers failed, in 2022, it might just be the $27 trillion Treasury market. When historians review 2022, many will remember it as a year when nothing worked. Such is far different than…
Biden Himself Almost Said It: ‘The Strategic Political Reserve’
Commentary Along with polyester leisure suits and lines at the gas station, the 1970s is remembered for moralizing dystopian movies, most of which blame the global catastrophes facing the principal characters on corporate greed or excessive procreation; like “Soylent Green,” whose title refers to a government mass-produced food whose sinister ingredients turn out to have…
Strong US Dollar Will Rev up Global Mergers and Acquisitions
Commentary Relative strength of the U.S. dollar is expected to continue, propelled by the Federal Reserve’s determination to combat inflation by tightening monetary policy. The dollar’s strength has been a headache for U.S. multinational corporations, whose revenues earned in other countries are worth less in dollar terms after currency translation. U.S. companies report earnings in…
Midterms Could Deal a Blow to Progressive Housing Agenda
News Analysis Challenges to single-family zoning are gathering steam nationwide, but an ambitious progressive agenda to promote high-density housing could suffer a major setback if Democrats lose control of Congress in the November midterm elections. The stakes include billions of dollars in federal grants and hundreds of thousands of housing units, as President Joe Biden…
The Asian Arms Market: Good News for the US (And Bad News for Russia and China)
Commentary Some of the world’s largest arms buyers are in Asia. The Stockholm International Peace Research Institute (SIPRI) confirms that Asia (including the Indian subcontinent and Oceania) has remained the world’s single largest arms market for the past several decades. According to the report, Asia accounted for a plurality (43 percent) of all international arms…
A Poignant Lesson of Historical ‘Inflation’ And Recession
Commentary Consumer prices were becoming exceptionally high, and policymakers at the Federal Reserve became increasingly worried they were falling behind. Having been forced into buying U.S. Treasurys—a lot of USTs—policymakers wanted to scrap the bond purchases and reverse course before it got to be too late, fearing the resulting overabundance of bank reserves. While this…
A Digital Dollar Is Coming—Americans Should Be Concerned
Commentary In 1861, the U.S. government began issuing paper money. Since then, for more than a century and a half, cash has been king. Very soon, however, there will be a new king in town. This king will be known as the digital dollar. A large number of Americans still believe, somewhat naively, that cryptocurrencies…
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