From March 2024 Bitcoin was in a downward slanted channel. Typically when this occurs a breakout can be expected to travel in the same direction as it entered. So, since it entered the channel in the upward direction we can expect a breakout to the upside.
Bitcoin Breaks Out Read More »
One of Trump’s big talking points in this election cycle was tariffs. So, what are tariffs and are they a good thing?
Tariffs or “import duties” have existed since the country began in the 1700s. Initially, they were imposed by Britain on imports to the Colonies. One memorable instance is the 1767 Townshend Revenue Act, which eventually resulted in the Boston Tea Party. (But not for the reasons you might think.)…
For many years economists believed, as Janet Yellen says, “if a company wants to export to the United States at below-market prices, we should buy the goods and send a thank-you note” but recently economists have begun rethinking that idea. What if those cheap imports last long enough to destroy all domestic production? Then you are at the mercy of foreign producers and all those domestic jobs moved overseas…
“When considering trade policy, it is important to recognize the difference between using tariffs to tilt the international playing field in favor of American businesses and using them as a negotiating tool…
Tariffs can help level the playing field when currency exchange rates aren’t doing the job they should be. Interestingly, back in 2005, it was none other than Democrat Chuck Schumer who led the charge to impose a 35% tariff on China…
Is Trump Right About Tariffs? Read More »
Just a few short years ago MicroStrategy (MSTR) was a run-of-the-mill software company. At that point, founder and CEO Michael Saylor realized that unless something changed, the company would remain a slowly dying cash cow. They had lots of companies paying them licensing fees for their software but eventually through attrition that would come to
What Makes MicroStrategy Special Read More »
The Chinese Monetary Bazooka– China has unleashed a monetary liquidity bazooka in an attempt to re-inflate not only Chinese Real Estate but also the Chinese Stock Market.
China’s Monetary Bazooka Read More »
The “M2 money supply” includes liquid assets such as Cash, Checking Accounts, Savings Accounts, CDs, etc.
Looking at the chart below we can see that the M2 money supply increased gradually for many years until the pandemic when it shot up drastically, and then in 2022 the FED significantly decreased the money supply for the first time. But over the last year or so it appears to be resuming its previous uptrend.
How Much is the Money Supply Growing? Read More »
Gold has reached all-time highs not only in nominal terms but by other measures as well. Is it overpriced now? What about Oil?
Is Gold Overpriced? Read More »
All taxation is generally bad for the economy…this is why virtually every administration that’s tried tax cuts has found them to be stimulative to the economy, going all the way back to at least JFK. Now, as the question suggests, there are different ways government takes resources out of the private sector, and they all have different characteristics regarding exactly who they harm.
Are Some Forms of Taxation Worse Than Others for the Economy? Read More »
In 301 AD, Roman emperor Diocletian implemented price ceilings on over 1,200 goods… The English translation of Diocletian’s edict is fun to read. It shows that not much has changed in politics over the millennia… now a new war must be waged against greed…
Are Price Controls a Good Idea? Read More »
Transferring goods from the private sphere to the public sphere is not the harmless conversion that MMT proponents and other lovers of big government imply. When they say that they only want to make a few more goods public, what they’re not saying is that those goods will likely, if not certainly, be used to serve far fewer consumers and to satisfy far less urgent and valuable wants.
Modern Monetary Theory (MMT) Read More »
Canada’s standard of living is on track for its worst decline in 40 years, according to a new study by Canada’s Fraser Institute.
The study compared the three worst periods of decline in Canada in the last 40 years — the 1989 recession, the 2008 global financial crisis, and this post-pandemic era.
They found that unlike the previous recessions, Canada is not recovering this time. Something broke.
One in three Canadians work for the government, making 30% more salary than the average taxpayer. Roughly 10% of Canadians are on welfare.
Canada’s Economic Crisis Read More »
