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Too Many People and Too Few Jobs

For some reason that I cannot really fathom even in these Orwellian days, no one seems willing to mention that there is a massive problem for the world’s economy and all its inhabitants. The global population has surged since I was born 57 years ago while technology has been hard at work obliterating jobs. And this process of job destruction is just now picking up steam.

Recent posts

Ideas Matter

One of the things I’ve learned in my life is how important ideas are. For too many years it was fashionable to appear tolerant of ideas, regardless of how off-base they might be. Politeness, or political correctness, trumped integrity in most conversations, and has led to an equivalence of ideas.  This has proven extremely detrimental to the lives of so many as there are indeed right ideas as well as wrong ones.

Basic Economics: Higher Wages Mean Higher Prices

If we are to have a nation in which workers get raises, isn’t it obvious that those wage gains will result in higher prices of goods? For so long the holy grail of (Globalization) economics has been predicated upon driving costs of goods lower in order to stimulate increased spending. This supported the rationale for moving labor overseas to impoverished nations. During this time American workers lost millions of jobs and those who remained employed went decades without a raise so that the elite, white collar worker could afford to buy more goods or have more money left over to pay landlords ever higher rents. This idiotic cycle has been at the root of the wealth and income gap that the Left has derided for so long, yet it is that same Left, led by the Clintons, that has embraced the move towards globalization that has so exacerbated the gap. (Note: Most Republicans until Trump also embraced the idea that globalization is a brilliant idea).

Chicken Kiev with my Apple Pie, Please

I write this piece because I love the foundation upon which our nation was built, and want to preserve that for my kids. In short, I simply cannot abide by a society that is so monolithic in its perspective, so quick to condemn without knowledge, so easily herded into a single way of thinking, and so willing to categorize anyone with a different opinion as being evil or ignorant as how I see society currently operates. It is frightening to me that we’ve descended into a society wherein people are reluctant to speak or question for fear of being ostracized or worse. This is not the country I want for my family.

What If Credit Tightened By Even 1%?

This week I read an article about a company that offers personal loans to folks who are seriously down and out. One of their strategies involves mailing checks for $2,000 to these people’s homes and if the check is cashed it activates a loan agreement that calls for the borrower/check-casher to repay the loan with interest at the incredible rate of 32% per year. Apparently, this is not uncommon and there are many companies engaged in similar business. Of course, like many, my first reaction to this article was dismay or disgust, thinking that these poor and obviously desperate borrowers are being taken advantage of. Then, I began to think to myself what this says about the health of our financial system. I wondered to myself, if this lending were indeed curtailed, thus depriving these borrowers from access to credit, what the impact on the economy might be. I thought: Is it possible that we NEED these people to borrow and spend, lest the economy not achieve targeted growth rates, whic…

The Inflation Whipsaw

What gives with inflation? When measurements indicated that it was running below a 2% annual rate the Fed and their fellow economists fretted that it was too low. They become preoccupied with pondering actions that could be taken to stimulate higher inflation, primarily involving manipulating interest rates lower and increasing the money supply in the hope that this will compel people to borrow and spend and companies to borrow, grow, and hire.

Amazon Trumped

Disconnecting upside from downside or actors from the consequences of their actions will always lead to negative outcomes.  Many examples of this have played out in the financial world in recent history and continue to this day. These include the unfortunate history of the government-sponsored-entities FNMA and FHLMC, each of which were publicly-traded companies that for as long as they made money paid significant dividends to their private shareholders and large bonuses to their executives, but when they lost massive amounts of money in the 2008 downturn relied upon the U.S. taxpayer to bail them out. There was no question to those few in the know that the disconnect between those executives and shareholders who enjoyed the upside and the unwitting taxpayers (and their even less witting representatives in government) whose collective guarantee was always on the hook and who thus always were standing in the wings to suffer the downside, would lead to a massive collapse one day. A ver…