Tag Archives: fiscal policy

American households are facing a tough financial reality. Despite efforts to bring manufacturing back home, income inequality is widening as real wages fail to keep up with rising debt. While wealth continues to concentrate at the top, a huge segment of the population remains financially squeezed and dependent on federal support. Between the pressures of globalization and a thickening layer of regulation, job creation is hitting a wall. This divide isn't just a trend; it's a structural problem that makes our current economic path look increasingly unsustainable.

Japan’s post-1989 experience provides a long-running case study on the limits of monetary and fiscal stimulus. After the collapse of a combined equity and property bubble, Japan relied on sustained deficits, near-zero interest rates, and repeated stimulus to stabilize growth. While markets eventually recovered in nominal terms, the process took decades and coincided with a sharp rise in government debt. In 2026, rising bond yields and higher debt servicing costs are testing the durability of this approach. The Japanese experience offers a relevant framework for assessing similar policy paths now being followed globally.

Is the U.S. dollar, as the primary global reserve currency, under threat? While the dollar maintains its position through the petrodollar system and military backing, structural risks such as the $38.4 trillion national debt and the diversification of foreign reserves pose challenges. What could trigger a monetary shift? A gold revaluation? Debt defaults? Investors should consider the strategic importance of physical gold as a hedge against currency transitions and the long-term erosion of purchasing power.

It is understandable why there is such a major divide between Republicans and Democrats in America when one examines their diametrically opposed, and seemingly irreconcilable, Keynesian and Austrian economic views. This article explains the different approaches to fiscal policy for each party and why he thinks one approach is better than the other based on research on the subject.

...Fiscal policy, both in the U.S. and in Europe, has already been a drag on economic growth, and it’s extremely likely to continue to be one as politicians begin addressing concerns about long-term debt burdens. The debate about the fiscal cliff deal might revolve around the preferred paths to reducing the nation's long-term debt, but it also will determine just how much fiscal policy will limit growth over the coming months and years. What’s really at stake, in the near term at least, is the answer to two important and interrelated questions: How dysfunctional is our political leadership and how bad is our economy going to be next year? Words: 610