Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others.
Social Security is headed for reduced benefits, and no amount of political rhetoric or even tax increases will solve that problem. The numbers do not lie.
Joe Salerno joins Bob to discuss the mainstream's focus on "rules vs. discretion" in monetary policy.
For close to eighty years, Argentina has been the world's poster child for reckless and spendthrift government. Today, the world watches it for a very different reason: Rothbardian reforms.
Federal spending is not the only out-of-control government spending in the US. A number of states have been overspending and now face declining revenues. Will bankruptcies follow?
Understanding the scientific method is crucial when examining complex phenomena and related hypotheses like “man is the main cause of climate change.” Unfortunately, "political method" has replaced the scientific method.
Paul Krugman and other Keynesians believe that since workers are unemployed during a recession, government spending to employ them is costless. Instead of creating wealth, these make-work schemes destroy it.
Congressional Democrats are trying to intervene in a complex and varied market they know little about but that consumers navigate without need of help. This will not end well.
By borrowing money and “creating” new jobs, the government is creating the illusion of a strong economy. This does not end well.
There is a lack of buyers for US Treasury debt. Rating agencies have recently downgraded the US debt, and entitlement benefits’ “trust funds” will go into the red in a few years. The classical economists offer few answers to the depth of this problem.
