In May 2020, the White House published a report, United States Strategic Approach to the People’s Republic of China, detailing a whole-of-government strategy with respect to the People’s Republic of China (PRC). This 16 page report outlines when and how…
Tag: Economy
Solvency Crisis Looms Over The Economy
The Federal Reserve and the US government together have injected more than $6 trillion into the economy. The US government's spending directly puts money in the hands of its citizens either by creating government jobs, or by sending out paychecks…
Why Is Universal Basic Income (UBI) Detrimental For The Society?
As the gap between the haves and have-nots grows, the concept of Universal Basic Income (UBI) seems very appealing to the populous. In this week's blog post, I will talk about how the entire concept of UBI is flawed. I…
Read More Why Is Universal Basic Income (UBI) Detrimental For The Society?
Disconnect Between The US Economy and The Stock Market
The stock market, for the most part, reflects the condition of the economy. So, if the economy is in a bad shape, then the stock prices will drop and reflect those worsened economic conditions. Mr. Market has this bad habit…
Read More Disconnect Between The US Economy and The Stock Market
Should Public Companies Be Allowed To Fail?
Shareholders are the owners of public companies. The CEO is elected by the shareholders to undertake the daily operating decisions of the company. It is important to understand that running a business is a risky endeavor, and business officials are…
Where Is The US Economy Headed?
On April 9, 2020, the Department of Labor released new unemployment insurance weekly claims for the previous week to be 6.6 million. More than 16 million people have lost their jobs so far, and if we compare this to the…
Is A Global Recession Inevitable?
The stock market has been very volatile this past week. The Dow Jones Industrial Average dropped 10% on Thursday (3/12/2020) due to fears of coronavirus. This was the largest one day drop in US stock market since Black Monday of…
Why Is The Federal Reserve Not Ready For The Next Recession?
The Federal Reserve plays a key role in jump starting the economy during a downturn. As outlined on the Federal Reserve website, the Congress has directed the Fed to conduct the nation's monetary policy to support three specific goals: maximum…
Read More Why Is The Federal Reserve Not Ready For The Next Recession?
Slowdown In The Indian Economy
India is Asia's third largest economy. India has had an amazing growth in the past few years, however in 2019, it has experienced slowdown in its manufacturing and construction sectors. On November 7, 2019, Moody's downgraded India's outlook from "stable"…
US Economy, Federal Reserve, And Interest Rates
On September 18, 2019, the Federal Reserve decided to cut the interest rate by 0.25%. This has been the second rate cut of the year. Let me illustrate what is going on with an analogy. You can think of this…
Will China Sell its US Treasury Holdings?
Towards the end of the trading day on Friday, May 17th 2019, there was breaking news that trade talks between the United States and China had stalled. This news led to a market sell-off in the last hour of trading.…
Tariffs on China Equate to Stagflation in the United States?
This past week, the US Stock market was highly volatile. The markets had big fluctuations because of the trade tension between the United States and China. On May 10, 2019, President Trump tweeted that the United States has started levying…
Read More Tariffs on China Equate to Stagflation in the United States?
Interest Rates and Inflation
The Federal Reserve, who has been hiking interest rates, has been in the news recently. In this blog post, I will talk about the relationship between interest rates and inflation. Inflation is the increase in prices and the fall in…
How do currencies work in the World Economy?
Currencies have fascinated me ever since I was a little kid. I used to collect bills and coins of different countries. So, this topic is near and dear to my heart. How do currencies work in the world economy? Now…
Health of the US Economy
With the recent decline in the US stock market, I decided to do some research to figure out the health of the US Economy. Using the 4 indicators that I mention below, we can gauge how well the US Economy…
Is Carry Trade Profitable?
Imagine getting paid interest everyday for holding onto a trade. You don't need to be actively trading or constantly looking at the market - all you need to do is HOLD! When I was learning to trade Foreign Exchange, I…
What moves the United States Dollar?
You might have heard the phrase "strong dollar" and "weak dollar" thrown around by media outlets. What does that actually mean? We discussed in a previous blog post the implication of "strong dollar" and "weak dollar" on economies; if you…
A Value Investor’s Mentality
I have traded Stocks, Options, and Foreign Exchange (Forex). I have scalped the EUR/USD pair, and I have spent numerous hours looking at chart patterns on various time frames for that perfect swing trade opportunity. I have made countless trading…
How tariffs affect the US Economy?
If you were wondering how the next stock market sell-off would take place, the answer is probably staring at you in your face with these tariffs that US President Trump has decided to put on Chinese imports. Some of you…
Superior North LLC 