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On Friday, March 10, Silicon Valley Bank (SVB) collapsed and was taken over by federal regulators. SVB was the 16th largest bank in the country and its bankruptcy was the second largest in U.S. history, following Washington Mutual in 2008. Despite its size, SVB was not a “systemically important financial institution” (SIFI) as defined in... Read More
Financial podcasts have been featuring ominous headlines lately along the lines of “Your Bank Can Legally Seize Your Money” and “Banks Can STEAL Your Money?! Here’s How!” The reference is to “bail-ins:” the provision under the 2010 Dodd-Frank Act allowing Systemically Important Financial Institutions (SIFIs, basically the biggest banks) to bail in or expropriate their... Read More
“There is no sense that inflation is coming down,” said Federal Reserve Chairman Jerome Powell at a November 2 press conference, — this despite eight months of aggressive interest rate hikes and “quantitative tightening.” On November 30, the stock market rallied when he said smaller interest rate increases are likely ahead and could start in... Read More
Congress has passed two major infrastructure bills in the last year, but imminent needs remain. The 2021 Bipartisan Infrastructure Law chiefly focused on conventional highway programs, and the Inflation Reduction Act of 2022 (IRA) mainly centered on energy security and combating climate change. According to the American Society of Civil Engineers (ASCE), over $2 trillion... Read More
Rather than making money harder to get, the U.S. government needs to focus on the other side of the demand vs. supply equation. In prescribing cures for inflation, economists rely on the diagnosis of Nobel laureate Milton Friedman: inflation is always and everywhere a monetary phenomenon—too much money chasing too few goods. But that equation... Read More
“Deglobalizing” and “dedollarizing” have been much in the news. Reducing dependence on the global supply chain and the U.S. dollar are trends that are happening not just internationally but locally. In the United States, we have seen movements both for local food independence and to divest from Wall Street banks. The burgeoning cryptocurrency movement is... Read More
While the global food systems we depend on come under increasing strain, there’s a solution to the growing crisis that most Americans can find in their own backyards–or front lawns. A confluence of crises—lockdowns and business closures, mandates and worker shortages, supply chain disruptions and inflation, sanctions and war—have compounded to trigger food shortages; and... Read More
Instead of buying into the World Economic Forum’s dystopian “Great Reset,” we can build an alternative system with a mandate to serve the people. This is part two to a May 4, 2022 article called “A Monetary Reset Where the Rich Don’t Own Everything,” the gist of which was that national and global debt levels... Read More
We have a serious debt problem, but solutions such as the World Economic Forum’s “Great Reset” are not the future we want. It’s time to think outside the box for some new solutions. In ancient Mesopotamia, it was called a Jubilee. When debts at interest grew too high to be repaid, the slate was wiped... Read More
No country has successfully challenged the U.S. dollar’s global hegemony—until now. How did this happen and what will it mean? Foreign critics have long chafed at the “exorbitant privilege” of the U.S. dollar as global reserve currency. The U.S. can issue this currency backed by nothing but the “full faith and credit of the United... Read More
Inflation is plaguing consumer markets, putting pressure on the Federal Reserve to raise interest rates to tighten the money supply. But as Rex Nutting writes in a MarketWatch column titled “Why Interest Rates Aren’t Really the Right Tool to Control Inflation”: It may be heresy to those who think the Fed is all-powerful, but the... Read More
The Fed has options for countering the record inflation the U.S. is facing that are more productive and less risky than raising interest rates. The Federal Reserve is caught between a rock and a hard place. Inflation grew by 6.8% in November, the fastest in 40 years, a trend the Fed has now acknowledged is... Read More
On July 14, the European Union unveiled sweeping climate change and emissions targets that would, according to Gulf News, mean “the end of the internal combustion engine”: While biofuels are a less high-tech, cheaper and in many ways more effective solution to our dependence on petroleum, the United States and other countries are discussing similar... Read More
The crisis of 2020 has created the greatest wealth gap in history. The middle class, capitalism and democracy are all under threat. What went wrong and what can be done? In a matter of decades, the United States has gone from a largely benign form of capitalism to a neo-feudal form that has created an... Read More
Mayhem in Melbourne On August 2, lockdown measures were implemented in Melbourne, Australia, that were so draconian that Australian news commentator Alan Jones said on Sky News: “People are entitled to think there is an ‘agenda to destroy western society.’” The gist of an August 13th article on the Melbourne lockdown is captured in the... Read More
To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial... Read More