Every time there is a banking crisis some scratch their heads and wonder; how could this happen? Surely it must be greed, bad risk management or lack of regulation. More intervention should solve it. However, all those excuses miss the most critical point: The U.S. …

The Silicon Valley Bank Collapse Is a Direct Consequence of Loose Monetary Policy. The second largest collapse of a bank in recent history after Lehman Brothers could have been prevented. Now, the impact is too large, and the contagion risk is difficult to measure. The demise of the Silicon Valley…

The U.S. Supreme Court has heard different arguments from supporters and opponents of President Joe Biden’s student debt forgiveness program. It is probable that the justices will rule before June. However, it is important to remember a few challenges. Student loans are an essential tool to help maximize the number…

At the end of February 2023, the price of oil (WTI and Brent), Henry Hub and ICE natural gas, aluminum, copper, steel, corn, wheat, and the Baltic Dry Index are below the February 2022 levels. The Supply Chain Index and the global supply-demand balance, published by Morgan Stanley, have declined…

The U.S. dollar enjoys the world reserve currency status due to numerous factors. Legal and investor security, an open and transparent market, as well as independent institutions with checks and balances that limit political power and strengthen the country’s currency in relative terms. No, a country does not have a…

Inflationary Policies Are Destroying Wages When we read about the U.S. economy, we often get wage growth as a signal of a strong labor market. …

There are many excuses often used to explain inflation. However, the fact is that there is no such thing as “cost push inflation” or “commodity inflation.” Inflation is not an increase in prices, it is the destruction of the purchasing power of the currency. Cost-push inflation is more units of…

Every time the United States reaches its debt limit, we read that it is important to reach an agreement to lift it. The narrative is that the debt ceiling must be raised, or the US economy will suffer a severe contraction. There is even an episode of a TV series…

Markets have recovered massively in January, boosted by lower inflation and optimistic estimates of growth. The Chinese recovery is a key factor for this optimism, as well as the relief in European sentiment as the euro area may escape recession. These are factors that may prove to be a mirage…