I met the author of this article, a veteran, at a party recently in Washington DC. I love that Crystal City, which is right next to the Pentagon and where dozens of defense contractors are based, is in the congressional district he wants to represent. My bet is he won’t be getting many donations from those zip codes.
In her speech at the New York Economic Club on Wednesday, Janet Yellen said it is “quite plausible” the economy will reach full employment in a couple of years with just the right amount of inflation, which to her mind means 2% a year.
If the economy surprises her, the Fed will “systematically respond to unforeseen economic developments.” But what exactly does this mean? How will the Fed respond?
Like it or not Bitcoin is changing the world. A year ago very few people outside of wonky libertarian financial circles even knew what Bitcoin was. Now it is known by everyone, including and especially governments and central banks. They for the most part are not keen on the crypto-currency. And one can understand why. The central planners have no control over Bitcoin and that scares them to death. How are they supposed to manipulate monetary policy if everyone is using blockchain based virtual currencies?
I can’t argue with Will on this. We should be ashamed of ourselves. We have allowed profligate spending. We borrow to pay our current bills. We elect people who year after year expand government and who pass laws which reduce our liberty and fundamentally our very humanity. It is we who have allowed this to happen.
Americans want a flat tax, overwhelmingly. It would be good for the general economy in a myriad of ways. (Assuming it was set at a low enough rate.) Just think for instance of how many millions of man hours lost to wading through our labyrinthine tax code could instead be put to productive use. A flat tax would just make life so much EASIER.
This graphic comes out every year and I still find it fascinating. (And depressing.)
Interesting things happening in the markets. We’ve had a dozen or so of these flare ups over the last few years so we’ll see how this one goes. But it’s definitely one of those times where brokers aren’t going on vacation.