News

China is lulling the market into a false sense of security

Positive economic data from China has markets around the world rallying, but the country’s rebound will be fleeting. That’s because the recovery was built on unsustainably looser credit conditions. “To sustain that next year they’re going to have to post in nominal terms a record flow of credit,” Autonomous Research’s […]
China is lulling the market into a false sense of security
News

Stephen Moore is going to embarrass himself (and us) at the Fed

President Donald Trump has asked the conservative economic commentator Stephen Moore to join the Federal Reserve Board. This is a mistake. The Federal Reserve is supposed to make policy independent of the White House and the GOP, and Moore has demonstrated he has no interest in doing that. Plus, he […]
Stephen Moore is going to embarrass himself (and us) at the Fed
News

China has actually been closing for business for the last decade

When China used easy credit and infrastructure spending to avoid the global financial crisis, it reversed years of reforms to open its economy, economists say. That’s because that credit went to unproductive state-owned enterprises (SOEs) and starved the private sector. Now, China risks unemployment and social unrest if it does […]
China has actually been closing for business for the last decade
News

The Huawei indictment marks the end of US and China’s cycle of trust

The US Justice Department’s criminal indictment of Huawei marks a new phase in the cycle of trust between the US and China. It is one in which aggression is more out in the open, and that aggression will directly influence perception and policy in both countries. What’s more, China is […]
The Huawei indictment marks the end of US and China’s cycle of trust
News

There’s a simple way to tell the US job market is not as strong as it appears

US wage growth remains weak given the low level of unemployment, suggesting the job market still has room for improvement. “The definition of full employment is low- and moderate-wage workers actually get raises,” said Josh Bivens, director of research at the Economic Policy Institute. “We are not at full employment […]
There’s a simple way to tell the US job market is not as strong as it appears
News

China is once again staring down the biggest Catch-22 in its economy

China’s economy has started to slow dramatically, even before US tariffs have had a chance to make an impact. The government is scrambling to boost growth and walking back some of the measures it took to rein in debt and credit creation. This means it is once again encouraging infrastructure […]
China is once again staring down the biggest Catch-22 in its economy
News

Trump’s economic agenda is exacerbating America’s inequality crisis

US income inequality, already at its worst levels since the 1920s, is likely to get worse because of President Donald Trump’s economic policies, including a tax-cut program that was heavily tilted toward the wealthy. A new report from the Economic Policy Institute finds the average CEO of a large US […]
Trump’s economic agenda is exacerbating America’s inequality crisis
News

China’s economy is starting to show its true colours again

The most recent economic data out of China came in weak across the board. It shows the economy is still in a precarious situation, saddled with debt and at the mercy of credit. There have been signs this has been the case all year – despite the country’s relative stability. […]
China’s economy is starting to show its true colours again
News

Here’s what we should have instead of a trade war

Instead of a trade war we should have a plan to boost our economy. I’m not talking about tax cuts that create miracle growth, I’m talking about actual goals that we set and meet that will help us domestically. We will not advance the US economy by trying to hurt […]
Here’s what we should have instead of a trade war
News

One side effect from Trump’s trade war could linger for years beyond his presidency

President Donald Trump’s abrupt, erratic approach to trade, even when he does not follow through on the harshest protectionist threats, is already damaging faith in the global trading system. “The Trump administration’s increased willingness to argue that conventional imports are a threat to national security could have an adverse impact […]
One side effect from Trump’s trade war could linger for years beyond his presidency
News

ZTE is just the most obvious of all the signs that China is playing Trump

ZTE, a Chinese technology firm, violated US sanctions against North Korea and Iran. So last month the US banned American manufacturers from sending parts to ZTE and levied a $US900 million fine against the company. On Sunday, President Donald Trump backtracked and said the US needed to help China save […]
ZTE is just the most obvious of all the signs that China is playing Trump
News

All the companies that hired Michael Cohen have an Enron problem

Thinking patterns at all the companies that hired Michael Cohen, President Donald Trump’s lawyer, smack of those at Enron before it became one of the biggest bankruptcies in recent history. Basically, they hide behind the fact that they’re following the law on paper while obviously violating the spirit of the […]
All the companies that hired Michael Cohen have an Enron problem
Markets

A single speech from a top Fed official shows why the imperative of racial and economic diversity is so much more than just lip-service

Atlanta Fed President Raphael Bostic, the first African-American to lead a regional central bank, recently spoke about the central bank’s often unacknowledged role in enforcing fair housing rules. “Fair housing is at its heart about economic mobility,” Bostic said. “Housing determines so many things – school system, jobs, quality of […]
A single speech from a top Fed official shows why the imperative of racial and economic diversity is so much more than just lip-service
News

Elon Musk doesn’t care about you

Elon Musk doesn’t care about you. If he did, he would have details about the things that matter to customers and shareholders – the progress of the Model 3, his company’s profitability, and continued efforts to make his cars as safe as possible. Sorry. I’m about to tell you something […]
Elon Musk doesn’t care about you
Markets

Trump’s ‘Art of the Squeal’ could really screw up US trade

The President has become known for making outrageous demands to start a negotiation and then moderating them as is closes. At this point, this tactic won’t solve some of our looming trade issues as Trump has taken the more moderate paradigm off the table. The default now is hostility. To […]
Trump’s ‘Art of the Squeal’ could really screw up US trade