Category Archives: Economy

09/28/21

The Debt Ceiling Kabuki Dance

Every few years, the United States rubs up against its mythical “debt ceiling,” a number which must be approved by the Congress to enable the Treasury to use debt to pay our national bills and conducts a ritualistic charade of acting like fiscally responsible adults — a bloody Kabuki dance.

Speaker of the House Nancy Pelosi and Majority Leader Chuck Schumer discussing the debt ceiling in costume of Japanese Kabuki dancers.

The debt ceiling is the maximum amount of money the US Treasury has authority to borrow in the form of bond sales.

Continue reading →

07/18/21

Inflation? Head Fake Or Reality?

We are told by the Federal Reserve in the person of its Chairman Jerome Powell that we are experiencing inflation, but that it will be “transitory.”

“Do not fret, dear, this inflation is transitory and you will be fine,” sayeth Jerome P during recent Congressional testimony. He then adjusts his glasses and gives you a grandfatherly look of confidence. But, should you feel good or is it all a head fake?

[Much of Christianity is built upon the notion that death is also transitory and that we shall live again in splendor with God in Heaven, but still we are dead. This is the story of inflation also?]

Continue reading →

04/30/21

A Hat Tip to the US Economy

I am quite bullish on the US economy over the short term — meaning until the Biden admin straps on the increased tax weights and we all try to swim with those babies drowning us. Hell, there is a great chance it may not even cross the finish line.

I am going to spend $6.3T + $3.5T and tax you back into the 1960s. Ooops. I didn’t mean to say that because I am a moderate and a unifer. Haha. Sorry. 

I like to take a look at a couple of bellwether companies to check my enthusiasm. One of those is Apple.

Continue reading →

04/17/21

The US Economy Is Going To Boom

Before the China Virus, the United States had the best economy in its history — since 1776 — and the strongest economy in the world. Then came the pandemic and we made some bad decisions. Economic growth declined — it contracted it — and the economy was essentially in TIME OUT.

Now we sit 15 months later with a myriad of vaccines and a steady shuffle toward herd immunity.

The whole Operation Warp Speed is a colossal success story that needs to be told. It is America at its best. Bravo and well played.

Continue reading →

01/30/21

Monetary Policy v Fiscal Policy — What Do They Even Mean?

Other day I am scanning a blog post from what was once my favorite blog. The author uses the words “monetary policy” and “fiscal policy” in a manner that reveals he has no earthly idea what they mean, but they sit nicely in the sentence and give off the erroneous notion that he is an erudite and educated observer of the condition of the world and our economy.

So, your Big Red Car will tell you what they actually mean.

Monetary policy and fiscal policy are not interchangeable. They mean different things.

Continue reading →

12/9/20

How Does Texas Do It?

Texans voted for a constitutional ban against imposing a state income tax in an election held in November 2019. The situation until then had been murky on the issue of a personal income tax relying upon something called the “Bob Bullock Amendment” which allowed the Legislature to set a personal income tax, but only if voters approved it via a statewide referendum and if the new revenue was used exclusively for school property tax cuts and education programs.

Which leads us to the question — how does Texas fund itself?

Continue reading →

12/3/20

COVID Exposes The Weaknesses

Business environments are impacted by laws, regulation, and leadership. This happens at the state level.

The business environment in, say, New York and California is different than the business environment in Texas.

COVID and the pressure upon Governors — the CEOs of their states — to steward the business environment in their states whilst simultaneously dealing with the pandemic has accentuated differences in state leadership and regulation.

These differences have triggered meaningful mobility amongst companies and investors.

Continue reading →