Bill Gross dropped $150 billion worth of US government bonds earlier this year. Wrong move. But you’d be making a worse mistake today if you moved into…
US firms are sitting on $2 trillion. The bad news? The US can’t easily crank up spending with a deficit already at 10.8% of GDP. Find out what the solution is.
Congratulations. You get to spend $5 less at the gas pump and grocery store. The country that will benefit is not the US. Our “extra” spending is going to…
China, as the US’s biggest banker, could destroy the American economy. All it would have to do is stop buying US debt notes and start selling them instead.
Believe me, I want to believe the Chinese government. It says retail prices are finally easing. Their words say one thing, however, and developments on the ground say another. China’s consumer price index rose 5.5% in May, the fastest rate in 34 months. While unemployment is holding down inflation in the US,
What can Obama do to get us out of debt? The Economist has a suggestion. Follow the post-World War 2 model. From 1945 to ’55, the US’s debt load dropped 50 percentage points, from 116% of GDP to 66%. How did America do it? Negative real interest rates and inflation. Lo and
The International Energy Agency says the high price of oil is starting to bite into demand. Good. That’s how prices are supposed to work. They go up and demand goes down (unless demand is inelastic of course). Prices then fall on weakened demand. But, in this case, oil shortages should prevent prices
Of course Ben Bernanke has an eye on Europe and their rising interest rates. Not to coordinate. That would be asking far too much of our central bankers. But arguably the ECB (European Central Bank) is the world’s third most influential central bank, behind The Fed and China’s. Britain’s Telegraph is calling
