Retail Tantrums Are a Clever Attack on Minimum Wage growth

This non vetted article was published to my personal blog on Talkmarkets:

We have seen oil tantrum in 2013 and in 2016 push the yields of 10 year treasury bonds higher. Well, there are retail tantrums now taking center stage. The retail tantrums are a clever attack on minimum wage growth. But some people are wising up to these tantrums. If people want their businesses and their jobs to survive, they need to keep pushing for a reasonable wage, which puts money into peoples' pockets. Spreading prosperity to labor will come back to help the capitalists.

[Nick Hanauer's Ted presentation is shown at the end of this article, and is a sobering look at where we are in the dance between capitalism and labor.]

Consider the attacks on minimum wage improvements from contributors to large financial websites.
Article after article speaks about …

Trump Cannot Easily Fix Rural America: Here's Why

This article was first published by me on Talkmarkets:

Donald Trump campaigned on being able to give hope to rural America. But his task is monumental. I grew up in rural America, in the oil patch. As fields diminish production, the rural industry impacts the areas for years. Oil was a lucrative business for small towns in central California, but in Coalinga, California, the fields are facing depletion.

The petroleum industry was declining in Coalinga when oil prices were high. Now they are in decline as prices have declined. Coalinga had options, and prisons and a mental health hospital keep the town going. However, in other towns, such as those involved in logging, towns in Northern California, Oregon and Washington, there were few options for replacing the logging industry that moved offshore.

And of course, that is the problem with much of rural America,…

Trump's Carrier Deal, Banks,Technology and Freedom

This article was first published by me on Talkmarkets:

Donald Trump's Carrier Air Conditioner deal, which leaves jobs in Indiana instead of offshoring them was certainly a bold move. I am very happy for the folks who kept their jobs. It is important to think about this from an economic perspective. I don't like pendulums, but rather an even handed approach to these issues.

Looking at this issue as an economic issue we can see two issues that should be considered.

On the one hand, a competitive world has its advantages. If nations can produce things cheaper, we can buy them more cheaply.

It would do no good for America if Carrier Air Conditioning would be forced to overcharge for air conditioners, simply because it is forced to stay in the USA.

On the other hand, one has to wonder how many companies leave America based upon greed rather than upon sound econo…

Trump Should Absolutely Issue 100 Year Bonds

This article was first published by me on Talkmarkets:

Donald Trump should absolutely issue 100 year bonds. Besides the advantages of pushing the rollover of bonds far into the future, the 100 year bond would give a better interest rate, would lock in a low rate over time, and be useful to companies that desperately need those bonds, such as pension funds and insurance companies. It could help the middle and lower classes if jobs were created by stimulus.

100 year bonds, which we could call very long bonds, would likely not be used as collateral in the lending and derivatives markets as collateral. In fact, I would not mind a law against using them as collateral. Certainly, collateral is in short supply. Issuing 100 year bonds would likely free up at least some 10 and maybe 30 year bonds for use as collateral. This may have a small impact on rates, but if they got out of han…

Bannonomics, Not Trumponomics Will Crush the Economy

This article was first published by me on Talkmarkets:

Steve Bannon threw major confusion into the markets with an interview at Hollywood Reporter where he said: "I’m the guy pushing a trillion-dollar infrastructure plan," said Bannon in the interview. "With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Ship yards, iron works, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks." This is essentially a call for the New Normal on steroids. The problem with this is that it is the opposite of the euphoria pushing the markets up, a strong dollar and higher interest rates! It is the opposite of the Trumponomics analysis given by Wilbur Ross. But Bannon would have to allow the recession that is expected as we are at the end of the busines…