Free-Market Billionaires

Bashing billionaires seems to have become quite popular these days. Most of the current Democrat candidates attack billionaires in one way of the other. Led by Bernie Sanders and followed by the rest of the candidates, including the two billionaires, they all want to tax billionaires in order to support their favorite causes. According to … Continue reading Free-Market Billionaires

Review: Austrian School for Investors

I recently read Austrian School for Investors[1], because I have been a student of investing for many years, and I know a group that has read the book for discussion. Although I began the book with the anticipation of a clear explanation of the application of Austrian methodology to investing, I finished the book with … Continue reading Review: Austrian School for Investors

Nations Cannot Win or Lose Trade Wars

Nation-states have no resources of their own. They redistribute the resources of their citizens. Nation-states can neither win nor lose when they play with other people's resources. Tariffs and other weapons of trade wars disrupt normal trade; helping one group at the expense of another. Illusion of Trade Deficits The concept of trade wars begins … Continue reading Nations Cannot Win or Lose Trade Wars

A Pricing Model

No one can build a model to either determine or predict prices, despite the useful information that prices provide. Attempts to predict prices will always prove fruitless. Knowing prices in advance would prove useful to owners and managers in all businesses. Imagine the profitability a company that could accurately predict the future prices of its … Continue reading A Pricing Model

Trade Deficits: An Introduction

President Trump’s threat to impose tariffs on steel and aluminum has triggered a blizzard of articles for and against the proposal. Instead of parroting what has been said by others — mostly empirical evidence, I want to give you the tools with which to understand the issue behind the proposed tariffs: “trade deficits.” Definition To … Continue reading Trade Deficits: An Introduction