Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.
Imbalance Sheets: US Debt and Fed Policy
Thursday, 06 July 2017 | 4:25 pm
The current public debt levels in the US have risen from 60% of GDP to over 100% since 2008. World War II saw public debt levels rise from 45% to 120%. The latest crisis control has cost the US government half of the cost of WWII. US Federal Debt as % of GDP: 2008 bailouts
- Published in Articles
No Comments
Make Britain Great Again.
Tuesday, 04 July 2017 | 8:27 am
It is very hard to optimistic about anything about Britain. The people are divided, quite evenly, between those who wanted to stay in the EU and those who would leave it. A referendum has effectively documented this fact. The decision was taken without a thorough understanding of the consequences of leaving the EU, as various
- Published in Articles
Brexit A Year On. No Clear Mandate. The Need For A New Unity.
Thursday, 29 June 2017 | 6:15 pm
I am neither British nor European, so I may not understand the historical and cultural context of Brexit. However, as an external observer, I can see great difficulties ahead for Britain, some of which I believe will be nearly impossible to resolve. The UK voted to leave the EU by a vote of 52% for
- Published in Articles
Weak Inflation, Fed Policy and US Bond Yields. Bond Rally To Continue?
Tuesday, 20 June 2017 | 4:22 pm
Given the importance of inflation to central bank policy and thus to investors, it is useful to look not only at headline growth rates of CPI but also at the components of the index and the behaviour of each component. Housing represents 42.6% of the basket. Within that, owners’ equivalent rent, not a cash flow
- Published in Articles
How High/Low/Long Can You Go?
Monday, 19 June 2017 | 12:36 pm
Can US equities sustain a bull market or even current levels without central bank support? Prior to unconventional monetary policy, the last 2 bull markets lasted from 1995 – 2000, and 2002 – 2007, or roughly 5 years in each case. What is not so easy to explain is why equities and corporate bonds have
- Published in Articles