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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:

1. Housing bubble Causes:
Fed Premeditated Mispricing of Risk in Housing, Oil, Junk Bonds and Other Markets 

2. Great Recession causes:
The Federal Reserve Knew LIBOR Was Exploding in 2007 and Did Nothing
LIBOR Destroyed Subprime, But the Fed Deepened the Great Recession
Proof the Federal Reserve Was Responsible for the Housing Bubble and Crash
3. Tracking a Potential New Housing Bubble:
How to Track the Trump Housing Bubble

This Is What Jamie Dimon Wants for Housing

4. History of Hoarding the New Gold (Treasury Bonds):
Hoarding the New Gold: Early History About Structured Finance
5. New Normal and Economic Theory:
Economic Theory Is Dead.…

Trump May Shrink Shipping and Air Shipping Capacity Utilization

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This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/global-markets/trump-may-shrink-shipping-and-air-shipping-capacity-utilization?post=117892&uid=4798

Donald Trump may destroy shipping and air capacity utilization if he decides to initiate a trade war. According to Trumponomics:

Targeted nations in this Trumpian effort to reduce the trade deficit include Canada, China, Germany, Japan, Mexico and South Korea, accounting for 1/2 the trade deficit. These nations export heavily and are prospering to varying degrees, and yet shipping capacity increases are a function of supply cutbacks, while air capacity utilization is in the depths of despair.

Shipping capacity utilization is high right now not because of more trade or prosperity, but because of massive cutbacks to the supply of shipping: 

High capacity utilization levels on the major east-west trades in the beginning of the third quarter are a result of supply-side adjustments rather than stron…

What a JFK Political Party Could Look Like

This is my opinion of what the JFK Party would look like based upon the views held by John Fitzgerald Kennedy at the time of his assassination and upon my views of what is to come:

1. Help the Poor

2. Help the Elderly

3. Force a generous Palestinian Two State Solution

4. Push for Tolerance of All Races and Religions, and that includes Jews and Muslims

5. Rein in the CIA

6. Permit Gun Rights (JFK supported gun rights as a defense against government abuse)

7. Stop all US wars except self defense. Carry a Big Stick

8. Promote the Idea of Helicopter Money

9. Make Israel Join the Non Proliferation Treaty

10. Support No Cold War Escalation with Russia

11.Support Unions

12. Support Heavy Penalties for Hiding Money Offshore or Onshore

13. Support Sovereignty in Deciding Green Issues and Sovereignty Over Dominance by Machines  (This includes being controlled by self driving electric cars.)

14. Root Out and Expose Those Place Allegiance to Israel Before the USA in Our Government

15. Rein in the Federal Reserv…

Larry Kudlow's Strange Views About Inflation

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/larry-kudlows-strange-views-about-inflation?post=117384&uid=4798

Larry Kudlow, well known economic pundit, for years on CNBC, has unusual views regarding inflation. Through a Forbes article, we see that he spoke to the Heritage Foundation and said this:

Inflation is a devastating tax on savings. But low inflation is a tax cut. By enhancing the value of financial assets, price stability rewards patient savers and investors. It is a stimulant to capital formation, new business start-ups and growth. Growth does not cause inflation, low inflation causes growth. That does not seem quite right. After all, when there is growth, auto prices go up, and when growth is slow, there are discounts and rebates on houses. The same sort of thing works for homes. The builder throws in upgrades that normally cost extra, and if that doesn't work, the price of new homes trend lower.

Kudlow is …

Donald Trump Cannot Increase Aggregate Demand

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This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/donald-trump-cannot-increase-aggregate-demand?post=116910&uid=4798

The entire logic of Donald Trump's policy rests on the assumption by some economists that Trump can boost aggregate demand in the economy. However, it appears that the Fed and Trump want two different things.

Donald Trump wants to give a supply side boost to the economy. However, even Arthur Laffer said that giving a boost through supply side economics only increases economic activity if the original taxes on corporations and marginal taxes on individuals are very high. In Ronald Reagan's time they were very high. Now they are not so high. But, Laffer has recently said that Trump's plan will work. 



However, the Laffer Curve was born this way:

The idea that lower tax rates could translate into higher total tax revenue is described by the “Laffer curve.” Legend has it that supply-side economist Arthur Laffer sk…

Trump Shock: Selgin,Coppola and Lambert

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This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/trump-shock-selgincoppola-and-lambert?post=116521&uid=4798

The discussion of asset inflation and the failure to get money into the hands of real people takes on an ever more urgent conversation since Donald Trump has been elected president. The Trump Shock may be real. And if and when The Donald should stimulate the economy is a real issue as well, as we can see later in this article. But we have to know why asset purchasing by the Fed did little for main street.

George Selgin has discussed the problem of asset purchases on the CATO Alt-M blog. He essentially agrees with Frances Coppola, that asset purchases have not caused a broad prosperity as they should have. He gives a detailed explanation as to the reason for this. It all revolves around interest on reserves. He said:
As for interest on reserves, although it failed to establish an above-zero “lower bound” on the effective federal …

Frances Coppola on M and Helicopter Money

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/frances-coppola-on-m-and-helicopter-money?post=116232&uid=4798

Frances Coppola is a very helpful blogger and economist who is widely published and well respected. She takes a dim view of asset inflation as many economists rightly do. She knows that there has to be a better way to stimulate the economies of the developed nations. While she believes deficit spending is superior to QE, She is not opposed to helicopter money but is possibly denying its value as opposed to fiscal deficit spending. More on that later.

But first, we should see what her argument is against QE. Basically, she explains in a fantastic and fundamental way, the QTM, the Quantity Theory of Money, MV=PY. Basically she says that the left side of the equation MV, meaning money supply times velocity is affected by the right side of the equation, PY, which is price level times yearly output. So, MV is affected by PY, not…

Great Recession: Coppola's In Betweeners and Central Banks

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This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/global-markets/great-recession-coppolas-in-betweeners-and-central-banks?post=116100&uid=4798


Frances Coppola is a blogger and economist in the UK. She has some great insights. She has made comments that monetary policy has not been really successful. In fact, she takes UK central banker, Mark Carney, to task over the defense of monetary policy in the United Kingdom.

While Carney and the UK government made mistakes, compared to other central banks it did better. Carney defends the Bank of England by saying:

"Simulations using the Bank’s main forecasting model suggest that the Bank’s monetary policy measures raised the level of GDP by around 8% relative to trend and lowered unemployment by 4 percentage points at their peak. Without this action, real wages would have been 8% lower, or around £2,000 per worker per year, and 1.5 million more people would have been out of work." It is pre…