Trumponomics and the Strong Dollar

Since the November election results, markets have been gaining – so much so that the big Wall Street trading firms booked eye-popping earnings in the fourth quarter. “Citigroup’s $3.7 billion trading haul was its best fourth-quarter showing since the financial crisis. J.P. Morgan Chase & Co., which reported its results last week, had its best fourth-quarter for trading ever,” reports … Continue reading “Trumponomics and the Strong Dollar”

On the Road to Elysium When fiction approaches fact

The 2013 movie Elysium depicts a dystopian future of unremitting, jarring poverty juxtaposed with serene, detached wealth. Literally detached: wealth resides in a lavishly equipped, lebensraum-furnished space station, high above an impoverished, exhausted Earth. The planet is only useful as a source of provision and maintenance for the space station; its fruits have been extracted … Continue readingOn the Road to Elysium When fiction approaches fact

Prospects for the US Economy

THE WORLD ECONOMY IN RÉSUMÉ In the previous post we outlined the structural condition of the world economy, and in particular the structural flaws it contains. The main flaw is the divorce between production and consumption. Prior to the establishment of this new macroeconomic structure, supply and demand were roughly in balance in the domestic … Continue reading “Prospects for the US Economy”

What This Election is Really All About

The Economics of the 2016 Election Cycle The current election cycle in the United States is like none other in recent memory. At least in terms of vitriol, it is no contest. But beyond the partisan slams back and forth lies a deeper fundamental reality which really lies at the heart of the contest. In … Continue reading “What This Election is Really All About”