Banks’ Unrealized Losses Soon to Be Realized

The timing of Jerome Powell’s appearance on “60 Minutes,” along with Janet Yellen and Ben Bernanke, is curious. Scott Pelley asked no penetrating questions, so nothing was learned. Fed Chairs aren’t known to hit the interview circuit. Bernanke appeared during the crisis to reassure the nation that the central bank can and will fix anything and everything.

Donald Trump (aka “Individual 1”) tweeted in January:

Alberta’s Regional Carbon Tax Is a Recipe for Disaster

The Fraser Institute in Canada recently released my study critiquing the province of Alberta’s approach to carbon pricing. My analysis for Fraser confirms what I’ve been arguing on the pages of IER for years: in the United States, conservatives and libertarians should run from any “carbon tax deal” that promises to shrink the size of government while battling climate change.

Central Banks Are Heading Toward a Stagnant Global Zombie Economy

Liquidity injections and zero interest rate policies disguise risk and may give a false sense of security. This risk could not be more evident today.  Not only have we seen large downgrades to consensus growth estimates and central banks’ expectations of GDP and inflation, leading indicators also point to a much weaker economy ahead.

There are similarities with 2008 that we should not ignore.

Entrepreneurs: Changing the World through Business

Politics is hardly an effective force for bringing about positive change in society. Instead, real change, and especially such that changes people’s lives for the better, comes from elsewhere. It comes from business, and specifically from innovators, entrepreneurs, and pioneers in the market. And very often it does so despite politics and the state — or even in direct conflict with it.

The Student Debt Conundrum

Using data from the Federal Reserve, Student Loan Hero — an organization that provides “resources, tools and information” to help “student loan borrowers understand their student loans and make intelligent repayment decisions” — reports that

Among the Class of 2018, 69% of college students took out student loans, and they graduated with an average debt of $29,800, including both private and federal debt. Meanwhile, 14% of their parents took out an average of $35,600 in federal Parent PLUS loans.

Dear Mr. President, Security Does Not Create Development

Recently, Honduran president Juan Orlando Hernandez met with the board of directors of the association of Honduran municipalities (AMHON). In this meeting, AMHON expressed support towards the President’s request to congress to increase the number of police and military units fighting gang violence in the region. It remains unclear as to whether the request is to increase spending in the area of police and military, or just the reallocation of the individuals that make up these groups.