Thanks for the great questions again this week. I’ll try to offer some brief thoughts on each, however, I won’t disclose info on proprietary indicators so those questions are left unanswered. Sorry, but there are just some things I can’t disclose. My dog needs to eat after all….So here goes: Dunce Cap: ”Can you give some background and description on [...]
There’s a viral video going around by Tony Robbins on the national debt. Unfortunately, he makes the dreaded error of confusing a currency issuer with a currency user. Of course, the two can never be compared since a currency issuer has no solvency constraint meaning that they can never “run out of” currency like currency users can.
There’s still a lot of confusion over QE and its actual economic impact despite some pretty clear-cut evidence about what the policy does. A brief recap might help. Just to be clear – QE in the USA does not work by “funding” the spending of the US government. I know this is a rather unorthodox perspective, but the government does [...]
I was on CNN radio again last Friday to discuss my article on the 9 economic myths. Topics we briefly touched on:
- Is there a bond bubble?
- Is the USA losing its reserve status and will this crash the dollar?
- Why the boom/bust cycle is here to stay.
One of David Rosenberg’s latest notes touched on 9 economic myths. If you’re familiar with his stance you probably know what his position is on each. So, instead of regurgitate them I am going to hijack his myths and insert my own opinions:
James Montier’s piece from the other day got me back to reviewing some of his past work and these comments on happiness really jumped out at me. Investors are a funny lot. They’re in the constant pursuit of profit, but few actually know what money is. And in most cases money is mistaken as the end and not just the [...]
There’s a powerful piece in today’s NY Times in case you haven’t seen it yet. This part hit me like a ton of bricks: “What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get [...]
I was on CNN Radio last week discussing my outlook on the markets, the economy and several other macro factors. Points I hit on: Why market risks are elevated. Why oil is becoming an increasing concern. Why I don’t see a recession in 2012. What is MMT and why I disagree with their Job Guarantee policy proposal. Will Europe pull [...]
* This post was written in 2011 before Mr. Roche founded Monetary Realism, a post-MMT school that was formed due to several disagreements Mr. Roche and many other former MMT proponents had with the school of thought. For more info on the difference in views please see here. For more on MR’s views please see here. The MMR conversation on savings and [...]
One of the primary topics of debate that has arisen in recent months is the general goal of modern macroeconomics and society as a whole. The so-called “holy grail” of modern macro is full employment and price stability. This is convenient because the figures are relatively easy to quantify and they allow economists to build models that are not excessively [...]