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Gary Anderson's Talkmarkets Articles by Subject

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I have written a lot of vetted articles that are exclusive** to Talkmarkets. Sorting a portion of them by subject will give the reader an opportunity to make sense of it all. I am adding a glossary of terms at the bottom of this page.

For readers interested in economic subjects of the day, these top 30 themes are my efforts to make understanding economics easier:

I have pinned the following article to the top because it is an insight into my personal life, as well as a commentary on isms. Capitalism is still the greatest system for creating wealth. However, it is often mixed, and mixturism is a factor in its success or failure:

Dangerous History Repeats

1. China! 


Trump May Be Wrong About Winning a Trade War
Keynes and Trump Tariffs
The Achilles Heel of Trump Tariffs
Trump's Punishment of China: The Start of a Radical Rejection of Foreign Capital?

Scott Sumner Destroys Financial Times Fear of China

Is the USA Too W…

Clever Fed Plan May Destroy Demand

This article was first published by me on Talkmarkets: https://talkmarkets.com/content/bonds/clever-fed-plan-may-destroy-demand?post=169182&uid=4798

The Federal Reserve Bank, the bank that is supposed to be watching out for the United States but that really only wants to watch out for big finance has created a clever plan. The simplicity of the plan is genius. But the plan guarantees the new normal and only has one major weakness. That weakness is discussed at the end of this article.

Fake reflation, as revealed by Jeffrey P. Snider, is just a small part of the plan. It is much more ambitious.

The plan even enlists the help of big corporations, dirty tricksters, as Ted Bauman calls them, not just big banks.

Let's look at how it all works:

1. The Fed keeps interest rates low or rising slowly on the short end. The Fed knows there is a conundrum at the long end. Even a little rise in longer interest rates is viewed with fear among Wall Street insiders. It must mean reflation. But …

Repo Watch Looking for the Next Economic Crisis

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This article was first published by me on Talkmarkets: https://talkmarkets.com/content/financial/repo-watch-looking-for-the-next-economic-crisis?post=146100&uid=4798


Repo watching is an important economic indicator. If repos don't roll over, credit freezes up. It is sort of like looking at a giant glacier, waiting for the big collapse on the edges. You watch and watch and watch, until you are bleary eyed, but then the action happens in a split second.

There are a couple of websites that deal with repo watching, including here at Talkmarkets. Jeffrey Snider, contributor to this website, is a serious repo watcher. Looking into how the system works in simple terms can help understand the economic indicator effect of repo rollovers. There are comments below about how Steve Mnuchin fits into this process.



But briefly we can look at the history of repo watching, as Bear Stearns was the ultimate victim of not rolling over repos. From repo watchers Cechetti and Schoenholtz we can lea…

Kashkari Reveals Dark Secret Fed Plan for Wages

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This article was first published by me on Talkmarkets: https://talkmarkets.com/content/economics--politics-education/kashkari-reveals-dark-secret-fed-plan-for-wages?post=145383&uid=4798

Minneapolis Federal Reserve President Neel Kashkari just revealed a Federal Reserve secret. That secret is that the Fed raises interest rates and slows the economy primarily to clip wage growth. The Fed has other reasons as well, but Kashkari said this, and it reveals a chilling and systematic destruction of labor's share of GDP:
“I think they are making different decisions because they are very worried about accelerating inflation,” specifically an acceleration in wages, Kashkari replied.
“I call this, and I mean this with no disrespect, a ghost story,” 
I leave it to others to determine if worry about an acceleration in wages is a ghost story at this particular time. However, it doesn't appear from the following chart that there should be much of a worry about wage growth, though data is d…

Tim Duy's Fascinating Take on the State of the Economy

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This article was first published by me on Talkmarkets: https://talkmarkets.com/content/education/tim-duys-fascinating-take-on-the-state-of-the-economy?post=142523&uid=4798

Tim Duy has a fascinating take on the state of the US economy. I will hopefully try to make sense of his viewpoint and offer another point of view. First, notice his charts above showing the tech economy in what appears to be a slight contraction.

The professor makes this interesting conclusion:

High asset prices alone do not imply that a fall in those prices will bring the economy down. Those asset prices need to be linked in a very tangible way to a fairly significant and widespread imbalance in the economy for their decline to bring about a broader economy collapse. Duy makes the case that a tight Fed brought down the economy in the early 1990's, not a fall in asset prices. One wonders why the Fed is interested in clipping asset prices if they won't impact the economy if the economy is balanced! You m…

Trump Administration's Strange Response to Ford Relocating to China

This article was published to my personal blog at Talkmarkets: https://talkmarkets.com/contributor/gary-anderson/blog/us-markets/trump-administrations-strange-response-to-ford-relocating-to-china?post=139558&uid=4798

Ford is going to establish its new Focus plant to China. The plant was going to Mexico, a nation that has prospered recently, causing fewer Mexicans to seek economic survival in the United States. One would think that is a good thing and should be encouraged.

So it is perplexing to me that regarding the Ford Focus, Donald Trump's administration said this:

“The Ford decision shows how flexible multinational companies are in terms of geography,” Commerce Secretary Wilbur Ross said in response to Ford’s news. “I believe that as President Trump’s policies and reforms take hold, more companies will begin to locate their facilities in the U.S. as several German and Japanese automakers already have.” The perplexing thing about this is that Donald Trump has spent a lot of…

Amazon's Jeff Bezos Doesn't Understand Female Shoppers

Update: After the takeover, so far, Whole Foods has dispensed with Amazon's online return policy and does accept poor quality vegetable returns.

This article was first published by me on Talkmarkets: https://talkmarkets.com/content/services/amazons-jeff-bezos-doesnt-understand-female-shoppers?post=139096&uid=4798

While it may seem like a bold statement, that Amazon's CEO Jeff Bezos does not understand women shoppers, the truth is in some areas he doesn't.

When it comes to grocery shopping, there are a few things that he will have to understand. With the acquisition of Whole Foods, it is expected that a delivery service could arise. For some people, this could be an important service. Amazon may increase the Whole Foods market share. There is no doubt about it. But it is not without significant risk.

But, Bezos underestimates the power of the female shopper. I know people with disabilities who shop in store and online, for store pickup. These services are available in …

The Cult of Tesla's Elon Musk

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This article was posted to my personal blog at Talkmarkets. It is my opinion only:
http://www.talkmarkets.com/contributor/gary-anderson/blog/the-cult-of-teslas-elon-musk?post=163389&uid=4798

Americans want to belong. This sense of belonging is often mingled with their political and economic desires. If you worship Elon Musk and support Tesla you will become rich, or support Amazon or Apple, or if you hitch your future to Trump you will reap financial rewards.

In the short run those scenarios are all proving to be true, some are long term successes, and who knows how long the others will last. With the Tesla experiencing one if its self driving cars running into a stopped firetruck on the 405 Freeway in Los Angeles, it is necessary to focus on Elon Musk. Musk appears to be using technology and a cult of himself to impact the American business world in ways rarely seen.

I focus here on Musk, because he is likely the the most powerful cult leader in America, other than perhaps Donald…