Commentary Yesterday, sitting at the airport, I bought a small 16-ounce bottle of water. The bill: $6.00. To be sure, this was the airport where the elasticity of demand is more vertical. Thirsty travellers are going to pay the bill. Also it was Las Vegas, a lovely and exciting town but certainly a place where…
In the United States ESG Economics Don’t Add Up
Commentary In America, any and all discussion around the environment has turned into political fodder, and one of the latest maneuvers by unelected elites is an attempt to roll out an uncompromised ESG investment monitoring policy. What Is ESG? ESG investing centers around investing in companies that score high in the following tenants: the environment;…
FedEx, Transports, Flash Bright Yellow to the Markets
Commentary FedEx, the global delivery and logistics company, withdrew its forward guidance after the market closed on Sept 15. The share price collapsed by more than 16 percent in after-hours trading. On Sept. 16, FedEx (FDX) shares opened sharply lower and closed down 21.4 percent by the time the market closed. To give you a…
Debt—and Why the Fed Is Trapped
Commentary The massive debt levels provide the single most significant risk and challenge to the Federal Reserve. It is also why the Fed is desperate to return inflation to low levels, even if it means weaker economic growth. Such was a point previously made by Jerome Powell: “We need to act now, forthrightly, strongly as…
RIP, Renminbi
Commentary The Chinese yuan (a.k.a. renminbi) is on pace to drop the most against the U.S. dollar in history as the world’s two biggest economies carve divergent paths in monetary policy. On Sept. 15, it broke the psychologically important 7 yuan to 1 U.S. dollar barrier. The U.S. Federal Reserve is poised to continue its…
Depleting America’s Emergency Oil Supply to Elect Democrats
Commentary In the film “All the President’s Men,” Washington Post reporters Bob Woodward and Carl Bernstein’s shadowy source, “Deep Throat,” says, “follow the money.” Some point to evidence that there really was no Deep Throat, or that there were actually half a dozen Deep Throats, but what the supposed source actually says in Woodward and…
A Perfect Storm for a Liquidity Crisis?
Commentary Efforts to curb inflation by central banks, particularly the Federal Reserve (Fed), may well trigger a liquidity crisis in the markets. That’s the assessment of University of Bath researchers, which claims that excessive anti-inflationary policies could create a money shortage within this calendar year. Moreover, it shows that central banks can be a destabilizing…
Biden’s New Biotech Order
Commentary The Biden administration is boosting biotech. Big time. It’s leveraging $2 billion to turbocharge the bioeconomy in America for a market expected to add tens of trillions of dollars in value over the coming years. “Global industry is on the cusp of an industrial revolution powered by biotechnology,” according to a White House fact…
Mixed Stats Muddy the Waters
Commentary For all the debate over and ambiguity in recent statistics, the U.S. economy can only be described as weak. Economic pessimists claim it is already in recession, pointing to the last two consecutive quarters of declining real gross domestic product (GDP). The White House and members of the Democratic Party are, for obvious political…
The European Union Is About to Rupture
Commentary The possible, even likely, collapse of the European economy would inflict some heavy costs to present European institutions. In this entry, Dr. Peter Nyberg and I detail why we believe we are likely to see some rupturing of the European Union (EU) as originally conceived. This may occur in two ways: Either the European…
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