Tag Archives | economics

trade deficit

The “horrors” of The Trade Deficit

The “horrors” of our Trade Deficit going up is back in the news! However, what is not explained is the mirror image of this deficit. What professor Perry points out in his blog post (note when this was published and when pundits are back at it again): “Because international transactions are calculated using  double-entry bookkeeping accounting, international […]

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average depth

The Flaw of Averages

People misunderstand what average means in all walks of their lives, not only in their financial matters. There are a few books out that explain this misunderstanding, most of them business books because managers can rarely afford making these kind of mental errors. Here’s a website by Stanford professor Sam Savage that touches briefly on […]

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why nations fail

China … an interesting perspective

Why Nations Fail. Rather than use my own inadequate words I think Thomas Friedman’s  Why Nations Fail opinion article (login required) expresses the book’s observations the best. Friedman writes: Quote: “Why Nations Fail” argues that the key differentiator between countries is “institutions.” Nations thrive when they develop “inclusive” political and economic institutions, and they fail when those […]

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Is Gold Worth Its Weight in a Portfolio?

Is Gold Worth Its Weight in a Portfolio?

Buying gold seems like a good idea. But does it really do what you think it is going to do? This paper suggests some considerations from a historical perspective … really the only perspective because nobody knows the future, in gold or for anything else really …. and that realization in itself is a healthy perspective. “The […]

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What is the world’s second largest economy?

Robert Neuwirth spent four years among the chaotic stalls of street markets, talking to pushcart hawkers and gray marketers, to study the remarkable “System D,” the world’s unlicensed economic network. Responsible for some 1.8 billion jobs, it’s an economy of underappreciated power and scope. I have seen the same kind of economic forces at work in […]

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What do you mean?

Many times people use a word when they are really talking about something else. Even the media does this when it comes to financial terms. Deficit vs Debt. Recession vs Bear Market. Deflation vs recession. When I say vs. I mean either word has been improperly substituted for the other within the context of the conversation. So […]

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