Relevant and even prescient commentary on news, politics and the economy.

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Capital Spending in the Depression

…hated “that Communist Roosevelt.” The crisis of confidence was created by the stock market crash, the deflation, and the bank failures of 1929-1933. Private investment recovered in a very healthy…

What next?

…(neither inflation nor deflation over the course of the business cycle) is the best solution in my opinion. —————– Quotes: —————– America’s (and the world’s) economy created this crisis because…

Monetary Policy and Economic Shocks

…is that their effect upon monetary conditions is not uniform. Consider: Peak Oil – inflationary Housing Bubble – deflationary US Dollar devaluation – inflationary Public Debt – inflationary If we…

STOCK MARKET VALUATION

…1875 to 1900 EPS did not grow. But we see many people talking about that as a great era of prosperity and deflation. I wonder how many of those who…

The Shape of the Future

…common phrase and Irving Fisher explained that prosperity would last forever. The Great Depression continued until unremitting deflation and waves of bank failures convinced a new administration that the tie…

Wal-Mart and Disaster Supplies

…based on an continuously upward sloping supply curves should work very well. Well, maybe not. Ever year since 1992, retailers like Wal-Mart, Home Depot, etc, have actually experienced deflation. The…

In the words of a founder

…by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless. I sincerely believe the…

Michael Darda’s Fiscal Advice for the FED

…a prerequisite for ascending to the U.S. Senate. As Nobel Laureate Robert Mundell recently argued, an appreciation of the yuan could impose deflationary pressures on the Chinese economy, fan tensions…

Interest Rates: The Very Long View

…during inflationary periods because inflationary episodes were typically followed by episodes of deflation. So over the life of the bond, current inflation was not a major concern. By the 1970s,…