MARKETS

money-515058_1920

The Federal Reserve: Promises vs Track Record

The biggest deflation in the history of the country came after the Fed was founded, and that deflation contributed to the Great Depression of the 1930s. As for bank failures, they reached levels unheard of before there was a Federal Reserve System.

Hedger vs. Teacher

Are Hedge Funds Worth More Than Kindergartens?

“The top 25 hedge fund managers made more than all the kindergarten teachers in the country,” declared President Obama in a discussion of poverty at Georgetown University. Calling them “society’s lottery winners,” he proposed to hike their taxes. Predictably, battle lines have been formed between two polarized sides. One side—let’s call them the Gauche for […]

road-691127_1280

Imagine a Highway

If roads were private the owners would have an incentive to provide capacity, safety, and invent a pricing mechanism that would enable traffic to flow freely.

Price “Gouge” Me, Please!

Artifically low prices resulting from government decree causes an artificial shortage which results in long lines, empty stations, and lack of incentives for more supplies.

YPP

Think Different About Purchasing Power

The dollar is always losing value. To measure the decline, people turn to the Consumer Price Index (CPI), or various alternative measures such as Shadow Stats or Billion Prices Project. They measure a basket of goods, and we can see how it changes every year. However, companies are constantly cutting costs. If we see nominal—i.e. […]