Holy BREXIT Batman!!!

Yeah, I didn't see that coming. I should have though. We all should have. So hold on to your 401k and get the out gold from under your bed. This could be a wild ride. But what does it all mean? The biggest consequence of a Brexit vote is risk, especially bond risk and currency risk. If the UK and leave the EU then Germany can. In fact, anyone can. If the big players in the EU leave than what is to hold it together and what is a Euro worth? I feel sorry for anyone holding Euros. I know Soros isn't, and he is a evil SOB that hits hard. I wouldn't...

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Why Hyperinflation is not a Danger

Every day someone is on the radio or cable news talking about how there is going to be hyperinflation. Some of them profit big from this. Not that hyperinflation couldn't happen. Anything can happen. However, the dangers of hyperinflation of the US dollar is almost always exaggerated. Many of the these so called experts refer to situations like the Vimar Republic. I myself have referred to this situation while talking about hyperinflation. I my myself have had concerns about hyperinflation. So why is hyperinflation not a danger? According to...

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OIL: The Black Gold

So China's demand for oil has plummeted, the supply from the United States has skyrocketed, and OPEC is trying to drive competitors out of the market by letting prices fall, and Russia. Don't get me started on Russia. So that is why Oil prices have fallen, but why is the government so eager to prevent drilling? Obama gave subsidies for Brazilian companies to drill in the gulf, but won't renew drilling permits for U.S. companies? He proposes a ginormous wilderness expanse in Alaska, knowingly preventing drilling for known oil reserves? The way...

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So, I am getting my masters in economics. Let's just say I've learned a lot. I'm not negating everything I've ever said, but I definitely see things in a new light. For example, Keynes wasn't crazy. Gov't spending stimulates the economy. However, his model is based on numerous assumptions and definitely does not hold in an open economy. So what we are left with is a bunch of economic tools in our tools box, and problems that are still not clearly defined by modern economics. With that being said there are some things that are pretty clear. Inflation...

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Three Unintended Consequences of Minimum Wage

Lately there has been a lot of windy politicians blowing about an increase of the minimum wage. I believe 10 states are considering bills to increase the minimum wage. There is also a lot of huff about a "livable wage." Though intentions are good, no one actually considers what raising the minimum wage would actually do. Here are three unintended consequences of minimum wage. 1. Unemployment Increases It's simple, if labor costs more then employers will purchase less of it. This doesn't mean every employer will purchase less. It just means that...

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