Categories
Economics

zero sum economy

Examples of positive-sum, negative-sum and zero-sum economic activity In a capitalistic economy, in aggregate, there will always be more winners than losers. This is because the economy is growing in the long run and both parties benefit from an exchange.   Similarly, in the stock market, there will always be more winners than losers, even […]

Categories
Economics

Does value investing work

Value investing was described in Ben Graham and David Dodd’s book Security Analysis in 1934. It was popularized by Warren Buffet. The purpose of this post is to address the question does value investing work. What is value investing Value investing is the belief that assets have an intrinsic value.  This intrinsic or natural value […]

Categories
Economics

Women are the Best Economic Indicator

What is the best economic indicator? Economic predictions are notorious bad. So this post I will talk about one economic indicator that is less known but not too shabby. Do not take stock market advice or make commodity trades based on this indicator, but it does work. Many people look at the ‘dry Baltic index’ […]

Categories
Economics

Americans are spoiled

Americans have economic lost perspective I am American. However, I became aware of how spoiled Americans are when I lived for many years in Eastern Europe. I am writing this not to cut on Americans, people who I respect, but to put economic life in perspective. Forgive my title, as I am a patriot, but […]

Categories
Economics

Cause of US Economic Problems

What are the biggest problems the USA has economically? US debt to GDP Federal Reserve mismanagement of money Trade deficit The root caused could be argued is fiat currency. It causes all three of the above. Fixed exchange rates under the gold standard balanced trade automatically under the price–specie flow mechanism. The Debt was controlled […]

Categories
Economics

Business cycle and Fiscal Stimulus

Fiscal stimulus exacerbates the business cycle Anything the government does free market does more efficiently.  Think of UPS vs the Post office.  Think of Google vs. umm the government could never create such an efficient tool as Google. Some people believe that micromanaging the economy and business cycles from the top with a large fiscal […]

Categories
Economics

The US Needs to Tax Companies Offshoring

Companies that go offshore will have to pay more taxes. Trump will incentivize the return of business domestically with a tariff. From Free Trade economics to common sense economics If we do not put some incentives for companies to stay, the middle-class wages will continue to decline. Multinational companies will offshore operations, relocate business processes and […]

Categories
Economics

Business in China is a Scam

Doing business in China is less than optimal My main objections to doing business with Chinese is: Takes the from the US manufacturing base and jobs Poor environmental and human rights record Toxic materials in consumer goods Much of the products are low quality My experience with trust has not been positive when I order […]

Categories
Economics

Economic Value Defined

What determines Economic value? The Definition of Economic value is the subjective utility one derives from a thing or idea. Many people think the amount of labor and hard work you put into something will determine value.  Because you put effort into something than you have created something of economic value.  Something that others will […]

Categories
Economics

Will there be Another Economic Crisis Like 1929 or 2008?

Yes and soon. Because the Federal Reserve inordinately expands credit and hence purchasing power, according to the Austrian business cycle theory, this distorts the capital structure by achieving growth unconnected to real savings. In 2020 the economy will start its descent down. This will specifically be triggered because the Federal Reserve Bank has kept the […]