April 30, 2019 — A century ago, the gold standard was considered a guarantor of monetary stability. That golden era is long-gone. (If it ever really existed at all. The general price level fell 53% in US and 45% in the UK during 1873-1896 due to a dearth of gold deposit discoveries.)
Continuing my thoughts on the Fed candidacy of Stephen Moore: he has said several times that he favors a return to gold. In true Trumpian fashion, he recently denied having said it despite the clear video evidence.
April 30, 2019 — Of the two men whom Donald Trump had intended to nominate to empty seats on the Federal Reserve Board, Herman Cain has now withdrawn his name. This leaves the other one, Stephen Moore.
The Senate would have to decide whether to confirm Moore. He has some problems roughly analogous to Cain’s: he is considered to be under an ethical cloud and he often gets his economic facts wrong. Cynics might respond that he would thereby fit right in with the roster of Trump nominees throughout the government. But Trump’s earlier appointments to the Fed have been people of ability and integrity and have been doing a good job, Chair Jerome Powell in particular. Perhaps Trump did not start paying attention to Fed appointments until recently.
March 24, 2019 — Donald Trump has postponed until April the supposed deadline for a conclusion to China-US trade negotiations. A good outcome for both sides would have China agree to better protect private property rights and to reduce the role of the state in its economy; the US agree to strengthen national saving and public investment; and both sides agree in the short-term to reverse their recent tariff increases and the resulting shrinkage of international markets. Unfortunately this deal is not likely to happen.