For the Pentagon, happy days are here again. With a budget of more than $1.4 trillion for the next two years, the department is riding high as it attempts to set the stage for yet more spending increases in the years to come.
Some people — including Donald Trump — think the dollar is too strong, and many propose the creation of a new version of the Plaza Accord, i.e., a multilateral agreement that includescoordinated intervention in foreign exchange markets.
Neither loose monetary policy, nor big-spending fiscal policy can grow an economy. All that these policies can do is to redistribute a given pool of real savings from wealth generators toward non-wealth generating activities.