Recently, two major railroad operators, CSX and Union Pacific, reported a significant drop in earnings, in part due to declining rail shipments. This was partially due to the impact of ongoing trade disputes. While we generally support a better trade relationship with China (hopefully with fewer tariffs and nontariff barriers), we need to see ...Read more
To keep the economy from a further growth slowdown, the Fed must inject more dollar liquidity into the global economy -- immediately.
The next Fed rate cut cannot wait until September. Fed Chairman Jerome Powell should call an emergency meeting of the Federal Open Market Committee and cut rates in the next few days. Waiting another month will ...Read more
Do we want the U.S. Federal Reserve Board to operate as a commercial bank -- and compete with our private banking system? The Fed apparently wants to, and it's a policy shift that could greatly expand the mission of the Fed.
Last week, while most of the world's Fed watchers were focused on interest rate changes, another key Federal Reserve ...Read more
Suddenly, nearly everyone wants the Federal Reserve Board to cut interest rates. I've been arguing for this for nine months, so it's nice to see the economic intelligentsia is finally persuaded. The Fed has become a restraint on growth since last August thanks to ill-advised interest rate increases (and promises to raise rates more in 2019), ...Read more
Finally, we seem to have a bipartisan consensus in Washington. Both parties are terrified of new private money, and they want to regulate it out of existence. The near universal fear and loathing by government officials of these so-called cryptocurrencies is all the more reason they should exist.
A cryptocurrency is a privately sponsored and ...Read more
The Congressional Budget Office has just released its mid-year update on the federal fiscal situation, and it portends a debt avalanche. But don't bother to tell Sens. Bernie Sanders and Elizabeth Warren that. They're busy advocating tens of trillions of dollars in new federal spending.
The new report shows that budget deficits are expected to ...Read more
Several years ago, I had a shoulder injury, and the doctor told me I might need surgery to fix the small tear in my rotator cuff. So, I asked, "Doctor, if I have this surgery, about how much will it cost?"
He looked at me confusedly and said, "Steve, I've been doing these surgeries for 20 years, and you are the first patient to ever ask me what...Read more
The recent threats by Beijing to cut off American access to critical mineral imports have many Americans wondering why our politicians have allowed the United States to become so overly dependent on China for these valued resources in the first place.
Today, the United States is 90% dependent on China and Russia for many vital "rare earth ...Read more
I've been shouting from the rooftops for six months that the Federal Reserve is too tight on money and that this lack of dollar liquidity has cut into growth. So it is somewhat vindicating that Fed Chairman Jerome Powell seems to be finally coming around to that idea. The betting markets are now predicting at least one rate cut this year -- and ...Read more
Almost all of the economic discussion of late has been on the "wage gap" between men and women. A case in point: California Sen. Kamala Harris wants to create a federal bureaucracy that will ensure the government has more influence over workers' pay than workers and employers themselves. This will open up a Pandora's box for trial lawyers as ...Read more
There's no question that many farmers are struggling this year with incomes down and bankruptcies up. Though some of the more dire reports on the farm sector recorded in the media are exaggerated, what is indisputable is that prices for major commodities such as corn are on a downward trend and are significantly lower than they were less than a ...Read more