Tag: Economics
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China and France complete their first LNG transaction in Chinese Yuan instead of the U$ Dollar
This is not good news. It’s bad enough China and Russia are trading in Yuan and strengthening their alliance. Now, we have an ally, that we defend with American taxpayer dollars, trading with China in their native currency. Chinese national oil company CNOOC 0883.HK, 600938.SS and France’s TotalEnergies TTEF.PA have completed China’s first yuan-settled LNG trade through the Shanghai Petroleum […]
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Government regulation of banks resulted in larger disasters
Since the creation of the modern banking regulatory apparatus the losses, as a percentage of GDP, have grown from 1% in 1913 to 7% in 2009. The safer the government tried to make banking the greater the risks people and businesses took. This resulted in larger failures and losses. “It is scarcely to be expected…that […]
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Safeguard your wallet… President Biden says the banking system is safe.
I would feel better if he would have never given a speech. In hindsight the collapse of SVB is simple. They were under water in government treasuries. When the Fed raised interest rates the bonds they held became worth less than the amount they could sell them. They didn’t have the liquidity to handle the […]
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Inflation in reality explained
Creating $5 trillion out of thin air devalues your money. It’s as easy to understand as a diluted glass of tea. The Federal Reserve financed $5 trillion of debt by printing money. This resulted in a dilution of the value of money, causing inflation. Printing money out of thin air is poison to an economy. […]
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Krispy Kreme to save $2 million a year reducing manual labor
$15 per hour is a great wage if there will be an entry level job open to pay it. Just wait until this automation catches up with all those Starbucks employees joining labor unions. Machines don’t sleep, don’t complain, don’t need healthcare, don’t show up late, and rarely make mistakes. The “fight for fifteen” will […]
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Shortage of everything except bad government policies
You’ve most likely heard we have a shortage of baby formula, nurses, teachers, and such. But did you know there is a shortage of accountants, Amoxicillin, diesel fuel, natural gas, jet fuel, Adderall, veterinarians, Thanksgiving turkeys, and bus drivers? Go to Google News, search “shortage”, and scroll through the ugly truth. Who would’ve thought shutting […]