Although it conjures up scary imagery, shadow banking is simply a term for banking operations that occur through financial intermediaries that are not traditional commercial banks.
If Bukele really wants monetary freedom for El Salvador, he should not have presented them with what, effectively, is a government handout for bitcoin hodlers and the companies behind the Strike app and other potential intermediaries.
Government jobs may help reduce the official unemployment rate, but they actually damage the economy. After all, most government workers are employed in the business of redistributing wealth and regulating private property.
Raising the US corporate tax would drive more capital out of the US. But the tax hike will be less risky if the US can get other countries to raise their tax rates as well.
Seemingly endless amounts of fiscal and monetary stimulus will keep prices rising in the near term. But if the banking sector and other bubble industries weaken, we will eventually see deflation as new loan activity lessens.
Only a bureaucrat would assume that putting a small child in public school is just as effective as keeping the child at home with a parent. Unfortunately for Biden, the research isn’t on his side.
