What games is Trump playing with Paul Ryan? When I worked in a medium security prison as a counselor, we would call this a form of asexual punking. This is when a gang leader puts down a member in front of others so that they kowtow to the authority of the gang leader without question. […]
Trump put down the mother of a crying baby after he said not to worry about it. He said that she didn’t understand and waved her off with his hand. He also said that the baby was “young, beautiful and healthy… that’s what we like.” What is he referring to in the video? Young women? […]
Trump is all twisted up in trying to seem intelligent about Khizr Khan’s wife speaking. He thinks his wife is being submissive to her husband as if somehow that is culturally wrong. He accused Khizr Khan of not writing his own speech. Yet it turns out that he wrote the speech with his wife. They […]
The #1 priority in our schools is to stop bullying. Any administrator in our school system, by law, must drop anything and everything that they are doing to deal with a situation of bullying. That is the law. If Trump becomes president, his bullying behavior will cause bullying to increase in our schools. Yet the […]
The PGA moved a golf tournament from one of Trump’s courses to Mexico City. Trump was upset. Trump said, “If I become your president, this stuff is all gonna stop.” It is clear in his immediate reaction to the decision that he plans to use the power of the presidency for his own personal business […]
At the DNC, a story was told how young Hillary was bullied on the way home from school. Her mother blocked the doorway and told her to go confront the bully. Hillary was trained to take on Bullies. Now bring on the debates. Let’s put that training to the test…
There have been calls for a 4% inflation target. But a 3% target would work better. Let me show you why. I will use this chart that plots net profit rate with core inflation… (quarterly data since 1958!!!) Net profit rate = Corporate profit rate – nominal interest rate The plot has hugged and slid […]
Yesterday, I wrote about the connection between inflation and corporate profits. (link) I posted this graph. (quarterly data since 1958 to 1st quarter 2016) The graph shows how inflation drops as net corporate profits rise. Net corporate profit rate = Corporate profits/GDP – nominal interest rate The trend line (bright red curving downward) implies an […]
Is there a relationship between Inflation and Corporate Profits? I think so. But I do not know of anyone talking about the relationship, so I will. The point I want to make is that corporations control prices. They set prices. They are not just price-takers. Corporations will change prices with an eye on their profits. […]
As a recovery gets underway after a recession, wouldn’t it be nice to have an equation that would forecast the peak of the profit rate cycle? Well, below is one. Profits are a function of labor share. If labor share rises, the profit rate will decline. Profits are also a function of optimizing the utilization […]