Are Bankruptcies of Some US States in the Future?
2024-02-01
Bankruptcy is a developing twenty-first century theme in America. We see bankruptcy in federal government policy and spending, many corporate boardroom decisions, nonprofit and religious groups’ overspending and arrogance, individuals, some United States cities and counties, and the territory of Puerto Rico. The federal bankruptcy law consisting of Chapters 7, 9, 11, and 13 allow bankruptcy filings for local governments, individuals, nonprofit groups, and for-profit businesses, but it does not allow bankruptcy filings for states and the federal government.
A few states are facing the reality of defaulting on their issued bond debt obligation payments and loan payments to lenders. These states are seeing current and future tax revenues decreases, net population losses, fewer private
US Foreign Policy Is a Far Cry from the Founders Intent
2024-01-29
In July 2021, the Watson Institute of Public Affairs at Brown University reported that since September 11, 2001, 7,057 US military personnel have been killed in military operations in Iraq and Afghanistan alone. Civilian contractor deaths reached 8,000, although the institute admits this is an estimate considering many contractors were not US citizens, so some deaths went unreported. Finally, 30,177 US service members would commit suicide after their deployments to these war zones, and the number of wounded veterans is even higher, as the Watson Institute would claim:
Over 1.8 million veterans have some degree of officially recognized disability as a result of the wars—veterans of the current wars account for more than half of the severely disabled veteran population. Many additional
The Current US Economic Situation from an Austrian Viewpoint
2023-11-02
This article is a brief analysis of the US economic situation from the point of view of the Austrian School of Economics. It is strictly macroeconomic: a deductive hypothesis of what is happening in the aggregates.
Let us place ourselves in the months immediately after the arrival of covid-19, the first quarter of 2020. As an economic policy measure, the US government decided to increase the money supply. Through different mechanisms, they put an unprecedented amount of money into the economy. This caused three important effects.
First, as the supply rises, ceteris paribus, the price falls. In the money market, price is the purchasing power of money (i.e., the number of basic baskets that one monetary unit allows one to buy). As the money supply rises, people get rid of the excess by