Market Insights
Higher or Lower?
“Interest rates are to the economy what gravity is to the physical world: they control everything.” Warren Buffett While Wall Street obsessively scrutinizes the Federal Reserve’s speeches and statements for clues about future policy, it’s focus—the federal funds rate—is merely a short-term, interbank lending rate with little connection/correlation to long-term
Weekly Blog #1
Money Talks “Price is the purchasing power of any good or service expressed in money.” Mark Lazar One of the most seemingly simple yet completely misunderstood concepts in the world today is that of money. We all use it but most of us have never given more than a passing thought as
December 2024
The Gilded Standard “Gold is money. Everything else is credit” J.P. Morgan For centuries, gold served as the foundation of Western economic systems due to its intrinsic value, scarcity, and role as a reliable store of wealth. The gold standard, formalized in the 19th century, ensured that every dollar issued
November 2024
Cause and Effect “Nothing good can come from the Federal Reserve. It is the biggest taxer of them all. Diluting the value of the dollar by increasing its supply is a vicious, sinister tax on the poor and middle class.” Ron Paul Among the many topics debated going into the
October 2024
Economic Alchemy “We’re all Keynesians now.” Richard Nixon Undergraduate econ students are typically introduced to several schools of monetary theory, such as Classical, Keynesian, and Modern—although in good conscience I hesitate to refer to the last one as a legitimate academic theory. Here’s a quick summary of each: Classical Theory–Milton
September 2024
Price Controls “As president, I will go after the bad actors. And I will work to pass the first-ever federal ban on price gouging on food.” Kamala Harris Between 1965 and 1968, Lyndon Johnson’s Great Society social welfare programs increased government spending (demand-side economics) by 60%, which, not surprisingly, increased
August 2024
Fast Nickels “The first object of taxation is to secure revenue. But if the rates on large incomes are so high that they disappear, the small taxpayer will be left to bear the entire burden.” Calvin Coolidge The U.S. national debt is currently $35 trillion. The federal deficit—the difference between
July 2024
NIMBY “Contrary to the vision of the left, it was the free market which produced affordable housing—before government intervention made housing unaffordable.” Dr. Thomas Sowell Home ownership has long been considered the American Dream. However, since 2020 U.S. home prices have risen 34%, and mortgage rates surged from 3.72% to
June 2024
Pathway to Poverty “The only way in which a durable peace can be created is by world-wide restoration of economic activity and international trade.” James Forrestal President Biden recently announced a wave of new tariffs on Chinese imports: 100% on electric vehicles, 50% on semiconductors, 50% on solar panels, 25%
