The Chinese and their U.S. Treasuries

Apparently, as I read the economic opinions of the day, the Chinese have made a disastrous investment mistake, acquiring billions of U.S. Treasury bonds that they might have to sell some day.  The trap that they have fallen into, the experts say, is that they have assets whose price may now fall.  If only they […]

Oil – Is There a Bubble?

There is something puzzling about the price of oil. It is high and rising. I think there are a couple of good reasons why the price is high. First, demand is growing fast (in part because of growing demand from emerging markets), and new discoveries of oil have slowed down. Second, low real interest rates […]