Recently, two major railroad operators, CSX and Union Pacific, reported a significant drop in earnings, in part due to declining rail shipments. This was partially due to the impact of ongoing trade disputes. While we generally support a better trade relationship with China (hopefully with fewer tariffs and nontariff barriers), we need to see strong freight rail traffic if the economic expansion is going to roll on.
To keep the economy from a further growth slowdown, the Fed must inject more dollar liquidity into the global economy -- immediately.
Do we want the U.S. Federal Reserve Board to operate as a commercial bank -- and compete with our private banking system? The Fed apparently wants to, and it's a policy shift that could greatly expand the mission of the Fed.
Suddenly, nearly everyone wants the Federal Reserve Board to cut interest rates. I've been arguing for this for nine months, so it's nice to see the economic intelligentsia is finally persuaded. The Fed has become a restraint on growth since last August thanks to ill-advised interest rate increases (and promises to raise rates more in 2019), which slowly squeezed out of the economy dollar liquidity and tanked the stock market.
Finally, we seem to have a bipartisan consensus in Washington. Both parties are terrified of new private money, and they want to regulate it out of existence. The near universal fear and loathing by government officials of these so-called cryptocurrencies is all the more reason they should exist.
It's official. President Donald Trump wants to index capital gains taxes for inflation. This would be a big stimulus boost for the U.S. economy immediately and over time and could get us back to 3% to 4% growth by liberating potentially hundreds of billions of dollars for new capital investment. My sources tell me that the president has told his White House team that if he can get his legal counsel to give him a ruling that he has the right to make this change administratively, he will do exactly that.
In the first Democratic presidential debates, Sen. Kamala Harris of California defended forced busing back in the 1970s as a civil rights triumph and criticized former Vice President Joe Biden for racial insensitivity for once opposing the policy.
The Congressional Budget Office has just released its mid-year update on the federal fiscal situation, and it portends a debt avalanche. But don't bother to tell Sens. Bernie Sanders and Elizabeth Warren that. They're busy advocating tens of trillions of dollars in new federal spending.
Several years ago, I had a shoulder injury, and the doctor told me I might need surgery to fix the small tear in my rotator cuff. So, I asked, "Doctor, if I have this surgery, about how much will it cost?"
The recent threats by Beijing to cut off American access to critical mineral imports have many Americans wondering why our politicians have allowed the United States to become so overly dependent on China for these valued resources in the first place.