2016 is shaping up to be “the Year of Protectionism” in American politics. Indeed, during the second presidential debate this year, in a race to show which candidate was more protectionist, one candidate (Trump) threatens to impose tariffs on foreign competitors, while the other candidate (Clinton) accused the first candidate of buying metal that has been “dumped” in America by foreign firms.
The word democracy is conspicuously absent in the Declaration of Independence, Constitution, and Bill of Rights. The framers feared it, and so limited federal power with checks and balances.
As always in an election year, the public clamors for more jobs. Understandably, being unemployed for any reason is a deplorable (did I just use that word?) position to find oneself in. Politicians promise more jobs. But does the market call for more jobs or more production?
In actuality, people clamor for more, cheap, newer and better stuff. They want a job to be able to accumulate the stuff. To some, it’s a matter of keeping busy or leading a fulfilling life, whatever that means, but to most people working at a job means they can have more stuff.
Last week, Austria issued a 70-year bond, the longest dated sovereign in the Eurozone. (Italy had issued a 50-year bond on October 4.) Austria’s bond issue was a “dual tranche transaction,” involving around 3 billion euros worth of 7-year debt and 2 billion of 70-year debt. The July 2023 bond yielded -0.191% while the yield on the November 2086 bond was 1.53%.
The Federal Reserve no action on interest rates this week, making November the 94th month in a row during which the Fed’s target interest rate is below 1 percent.
The term “globalization” — in the sphere of economics — describes an increase in trade, and greater movement of capital and labor across national and regional boundaries.
Free trade has long been among the driving factors behind economic globalization, and for centuries, economists have generally agreed that free trade is an important force in building wealth and economic growth. Even economists who disagree on almost everything else, can often agree that lowering barriers to trade is a good thing.
Through good times and bad, regardless of what’s actually happening in the world, one thing is certain: in the long run, the Pentagon budget won’t go down.
In a move that surprised exactly no one, the Fed’s Federal Open Market Committee met yesterday and announced it would take no action.
The Fed sounded the same note it has been sounding, quite literally for years. Namely, that things are improving at a “moderate” pace, but not strong enough to warrant a rate increase at this time.
According to the FOMC’s press release:
