Often various factors are perceived to be important in determining a currency rate of exchange. For instance, for some commentators an increase in the government foreign debt is regarded as pointing to a likely deterioration in economic fundamentals ahead. This provides the rationale for the selling of the currency of concern.
Today, I will sign a series of historic executive orders. With these actions, we will begin the complete restoration of America and the revolution of common sense. It’s all about common sense. — President Donald Trump’s inaugural address, January 20, 2025 (emphasis added)
An early mentor once warned me, “If the public knew the truth, the markets would be cut in half.” Decades later the stock market has soared tenfold, but so has the deceit.
We have a new administration coming in with a central promise of “truth.” Trump has placed what some call “radicals” in charge of key agencies and departments. The good news: this bold strategy may be the only way to cut through the noise to find the truth. The challenge: the truth sometimes hurts.
While acknowledging his great evils, future strategists and historians will one day likely recognize Osama bin Laden’s strategic acumen. With minimal resources or technology, Osama bin Laden managed to create immense socioeconomic damage and nearly destroy both of his main enemies—the “godless” Communist Soviet Union and the Zionism-supporting United States. Bin Laden achieved this using only one simple weapon, a basic understanding of economics, and thus, the immense harm that military spending does.
The Panic of 1819 was one of the first major economic and financial crises in American history. The panic led to widespread bank failures, unemployment, and distress, particularly in the western states.
At its September 2024 meeting, the Fed’s FOMC cut the target federal funds rate by a historically large 50 basis points and then justified this cut on the grounds that “The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”
The technological revolution—spearheaded by advances in robotics and generative artificial intelligence (AI)—is poised to reshape industries, redefine job roles, and challenge traditional labor markets. While the disruptive potential of these innovations raises concerns about widespread job displacement, the evidence suggests a more nuanced reality: these technologies can complement human labor, create new job opportunities, and enhance productivity.
With Central Bank Digital Currency (CBDC) banned by executive order, the Fed may have more incentive to explore alternatives in the cryptocurrency market. This week, Fed Governor Christopher J. Waller gave a speech titled: Reflections on a Maturing Stablecoin Market, sharing his thoughts on the potential role of the Federal Reserve in the private stablecoin market.
According to the Governor:
