wages

Tropical Labor Math

By |2018-10-05T12:00:35+00:00October 5th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It was coming, it wasn’t coming. On again, off again. Voluntary evacuations, all clears, and then the rushed mandatory removals. When Hurricane Bonnie finally made landfall, it left people more angry than usual with these kinds of storms. Weather officials just didn’t know where it would end up. In eventually would smack right into Virginia’s [...]

Worker Wages And Who Is Really Winning

By |2018-10-04T18:19:59+00:00October 4th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Amazon made a huge splash when it announced it was raising wages. On the surface, it appeared to confirm all those stories about a massive, nationwide labor shortage. In addition, it positioned Amazon in the “fight for fifteen”, a political topic which raises more questions than provides answers. It was the rare occasion where populists [...]

Incredibly Simple economics

By |2018-09-28T16:49:40+00:00September 28th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There are more than 300 PhD Economists working on staff for the Federal Reserve. The central bank tells us that they “represent an exceptionally diverse range of interests and specific areas of expertise.” Perhaps, but they are all PhD Economists, aren’t they? These highly educated people cover a broad range of topics, for sure, and [...]

The Only People Who Don’t (Want To) See It

By |2018-09-17T19:42:15+00:00September 17th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

If everything was going to plan, non-standard monetary policy at the zero lower bound (QE) would have raised inflation expectations increasing the level of aggregate demand as businesses and consumers ramped up their activities in anticipation of higher costs. The more this “overheating” goes on, the more forceful it becomes. Eventually, by virtue of the [...]

Bond JOLTS Without Wages To Back Just JO

By |2018-09-11T17:46:59+00:00September 11th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In the absence of a booming economy, one has been conjured from a select few employment statistics. The catalog, beginning in 2014, consisted of a rapidly falling unemployment rate, the Establishment Survey which dazzled with headline payroll growth supposedly adding up to the “best jobs market in decades”, and the JOLTS series but curiously omitting [...]

It’s A Dollar-based Boom Shortage More Than Anything

By |2018-09-06T17:33:38+00:00September 6th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Liquidity preferences are one of the least discussed economic concepts. There are several channels into which monetary instability can hamper the real economy. A “dollar” squeeze doesn’t just impact banks, they often pass it along further down the economic chain. In its most extreme form, we had something like 2009. Some of the best companies [...]