Intro LO: I’ve decided using the Wall Street Journal article (below) because this type of crisis is unknown in Europe. Probably because Europe favours fair inequality while America favours unfair inequality (eg, my 2018 blog, a 2017 Yale study). I agree with the author (below): the American ‘Affordability Crisis’ cannot be solved. Neither can other American crises...
Intro LO: The one thing that the American president cannot hide (eg, U.S. labour statistics), and/or control (eg, Fed interest rates) is the international currency valuation of the US$. Hence, this article's title - that the market's bearish bets on the dollar continue to grow - should hardly come as a surprise. Moreover, lowering American interest rates in an...
Intro LO: In a market economy, lower consumer demand is compensated by lower (eg, manufacturing) supply in order to maintain consumer prices. Lower demand without lower supply, will cause high inventories, and the need for price reductions in retail and wholesale. Latter is called (price) deflation. Clearly, China does not quality as a market economy given the very...
Various articles discuss who has won the trade war between Europe and USA (eg, Politico-1). Apparently, the more taxation, the better. Seriously?? This lack of perspective worries me. France (and others) complain about the lack of reciprocity of import tariffs for USA (eg, Politico-2). Such articles forget - or ignore - some very important things: Impact of import...
Intro LO: The biggest problem of a debt crisis is the increasing interest burden in annual government budgets. This explains why Trump wants to replace the chairman of the Federal Reserve, who resists lowering interest rates. Lower interest rates would - normally - help in containing the annual interest burden. Wikipedia: "A debt crisis is a situation in...
A local friend made the (Dutch) comment above. He urged me to consider this and write about it. His smirky smile suggested that his remark had an ambiguous (eg, sexual) context, which is rather common. Actually, Science (eg, Boston Uni, Physics, TH) agrees with his observation: Yes, friction is necessary for forward motion in many cases. When an object pushes...
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