This article examines the currency imbalances between US dollars and the other currencies and concludes that should foreign holders decide to reduce their dollar exposure, the consequences for its value would be dramatic. The dollar’s problems should be laid at the door of the wishful thinkers who think the state knows better than free markets. It is that which has led to currency imbalances. Central banks attempting to manage economic outcomes by manipulating interest rates and “stimulating” economic activity have acted in defiance of Say’s law, which defines the relationship between production and consumption, and the true role of a medium of exchange.
Money supply growth fell again in March, plummeting further into negative territory after turning negative in November 2022 for the first time in twenty-eight years. March's drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years. Since April 2021, money supply growth has slowed quickly, and since November, we've been seeing the money supply repeatedly contract for five months in a row. The last time the year-over-year (YOY) change in the money supply slipped into negative territory was in November 1994. At that time, negative growth continued for fifteen months, finally turning positive again in January 1996.
JPMorgan Chase & CO (JPM.N) CEO Jamie Dimon said on Thursday the bank is convening weekly meetings to discuss the implications of a potential U.S. default, according to an interview on Bloomberg TV. That bank's so-called "war room" will probably start daily meetings on May 21, then ramp up to three times a day if the standoff over the debt limit drags on, he said. "We've got to be very careful about getting close" to a default, which could cause a financial panic, he added.
For all the recent talk about clean energy and a shift away from coal, there’s a major problem in our goal to transition to a net zero-carbon economy. Despite all the growth and advances in renewable energy, globally we consume more fossil fuels than ever, and our rate of CO2 production is in fact increasing, not heading to zero. But there’s a bipartisan, environmentally friendly solution still sitting on the table, still waiting for its moment — if only we can overcome our predetermined bias.