U.S. Economy

With the two-month total at over $620 billion, the year-end total is likely to be over $3.5 trillion by the end of the year. That would make the next annual deficit even larger than 2020’s.

A modern misconception of antebellum slavery is that it “built the country.” Actually, the institution of slavery, economically speaking, was a deadweight loss to the US economy.

Government spending does not reflect true economic value the way personal spending does.

Interest rates, inflation, home prices, and federal spending all pose big challenges to a Trump administration that is ill-prepared to deal with the deep-seated problems in the US economy. 

The Federal Reserve continues to be the not-so-silent partner to the government's reckless deficit spending scheme. While the Fed tries to force down interest, US bond yields are rising, as the markets recognize these bifurcated policies.

The Federal Reserve says it can manipulate the money supply to ensure “price stability.” This worsens the boom-bust cycles and undermines the economy.

The damage tariffs impose is not limited to increasing consumer prices. They also create major distortions in the markets.

In his failed 1896 presidential campaign, inflationist William Jennings Bryan declared that he would “not crucify mankind on a cross of gold.” But at least even Bryan favored silver money. Today‘s political candidates will crucify us on a cross of paper.

We have reached this point: the government keepers of money do not even understand what money is or why inflation is harmful. To them, the real threat to the economy is “deflation.”

Ryan and Tho examine the role that ideology and interest groups will have on Trump's administration and on his political appointees.