This site last updated on July 22, 2014. Subscribers receive all of Dr. G's weekly economic and financial reports as soon as they are produced. Selected reports and portions of those reports are published on this website and available to non-subscribers. You may contact him by clicking this link:
Excellent report from Stratfor on Russia "Can Putin Survive? is republished with permission of Stratfor."
Economic news remains positive Misleading headlines reporting a downward revision in first quarter GDP and a drop in new orders give the false impression the economy is weakening. Digging beneath the surface, it appears the opposite is happening. New orders outside the volatile defense and transportantion areas are increasing more rapidly. This confirms the indications from purchasing managers, who also report and increase in orders. On balance, the latest data point to a pickup in business activity this summer and fall.
Dr. G's monthly update to clients See Dr. G's May update of financial conditions sent to clients on May 13th Dr. G's Analysis
Monetary Policy & the Financial Crisis With the aid of recently released transcripts of Fed meetings, Genetski's analysis provides insightful details into the role monetary policy played in the worst financial collapse since the Depression Dr. G's Analysis
Genetski Again Honored As Top Speaker Speakers Platform announced Robert Genetski has been voted one of the top 5 speakers in the fields of Economics/Finance for the fifth consecutive year. Speakers Platform
“It's a great honor,” said Genetski. “It raises the expectation of audiences, which is good. It means I have to work that much harder to meet higher expectations.” Each year, Speakers Platform recognizes five speakers with fifteen popular topic areas. Recognition of excellence in speaking is based on expertise, professionalism, client testimonials & references, presentation skills, original contribution to the field and public votes received at the Speaking.com Web site. Over 12,000 votes were cast from business leaders, educators, association members and others from around the world. Many voters effused about how much the nominees improved their personal and professional lives; a living testament to the positive impact and important work of all the candidates.What is QE3 and What's all this talk about "tapering"? Dr. G's explanation of the Fed's current dilemma
The End Game for Unwinding Federal Reserve Liquidity Dr. G explains the implications of the Fed's massive increase in liquidity for the economy and financial markets See the introduction to Dr. G's recent monthly report to clients
Why "best practices" for healthcare won't work An ex-medical doctor offers his view on what's wrong with the healthcare law. See article
Cyprus Update March 25th: The Cyprus solution is the first positive move to come out of the Eurozone since its formation. When banks become insolvent, equity holders, then bondholders and then depositors should be at risk for the losses. This is the way markets are designed to work. See the additional comments See also initial March 19 comments
The Impact of Freedom-to-Work Laws on Michigan's Economy On January 28, Dr. G presented his views on Freedom-to-Work to the Economic Club of Grand Rapids. Here is the PowerPoint from the presentation.
Happy New Year Compromise! The wide range of tax increases will damage the prospects for growth. Unfortunately, the results of this past year’s election indicated significant support for such destructive policies. The only question was just how destructive those policies would be. With the reported compromise, the answer is—not be as destructive as they could have been. Dr. G's comments on the Compromise Agreement
Transcript of Dr. G's speech on Poverty, Prosperity and Economic Freedom at Trinity Christian College: Read the transcript
Bob Genetski Is My Favorite Economist No, this isn’t coming from either President Obama or Krugman (although he is mentioned in the article). It was written by Christopher Channer, who distributed it to his investment clients. I’m posting it here because even my Mom hasn’t said things this nice about me. Bob Genetski is my favorite economist
Federal Spending Doesn't Stimulate Growth, It Usually Depresses Growth After carefully examining the impact of federal spending from 1901 to 2011, Dr. G explains how and why it tends to depress economic activity and increase unemployment. See the complete report
How Keynesian Economic Theory Contributed to the Financial Crisis Dr. G's provides a detailed analysis of the financial crisis. Read what caused the worst financial crisis since the Depression
Exorcise the Keynesian Demons A full 66 years after his death (April 20, 1946), the spirit of John Maynard Keynes still possesses the minds of many of the world’s economists and national policymakers. Keynes economic icon demon instills an irrational fear—that cutting government spending will undermine economic activity, while history rationally demonstrates the opposite. Continue reading
Japan's Third Opening Great tragedies can make for great opportunities. Dr. G's Nikkei column
Can a Blind Pilot Land Safely? Today's Wall Street Journal (May 23) describes a speech given by economist Robert Mundell. Mundell is one of the world's leading economists and is concerned that the end of QE2 will lead to a recession. Dr. G commnets on Mundell's views. Click to read
Health Care Suffers from Governmentitis Our health care system is broken. Prices are exorbitant. Doctors often avoid prescribing the treatment or medicine they believe is appropriate. Instead, they often defer to the one recommended or preferred by Medicare. Prescription drugs are either ridiculously cheap or horrendously expensive. Health insurance is costly and indecipherable.
The main problem with our health care system is that it has a bad case of governmentitis.... Click to read the entire article
Bank Reserves and Their Implications for Monetary Policy
A recent study by the Fed's staff regarding the behavior of excess reserves helps to explain some of the unprecedented changes that have occurred over the past year. The study clears up some of the unknowns regarding the Fed's policy and has important implications for tracking monetary policy. The Fed staff report is on target in identifying a key source of the buildup in excess reserves.
The bottom line is that I am more convinced than ever of the need to subtract excess reserves from total reserves in gauging monetary stimulus. What they have failed to address is the issue of why the Fed would allow "net reserves" to decline during a period of financial stress. Until they address this issue I have to assume those at the Fed know not what they do. Read the entire reportDr. G's critiques Krugman
Paul Krugman argues that we need a large fiscal stimulus package. Dr. G shows that these arguments are not supported by either sound economic theory or by the evidence. If fact, fiscal stimulus in the form of government spending makes the economy worse not better. Read Krugman's statements and Genetski's response.
Dr.G Provides a Classical Perspective to the Immigration Debate In terms of the immigration issue, economics and moral principles lead to the same conclusion. The best way for the US to help our neighbors to the south is to minimize restrictions on workers coming into the US. A free market for workers provides the quickest means of helping both those in Mexico who need work and those in the US who need workers. As in all other areas where free markets operate, the end result of a free labor market would be higher living standards on both sides of the border. In the case of immigration policy, as in so many other areas, doing the right thing also provides the greatest benefits. Read the entire article. Immigration: Economic & Moral Issues Dr. G Discusses The New World OrderIn 1980, the three most powerful countries in the world were the United States, Japan and Germany. Today there is a new world order. Based on purchasing power parity estimates, the three most powerful economies are now the US, China and India. Read the entire article. A New World Order: US, China, India are 1-2-3
The Moral Case for Privatizing Social Security
The moral case for privatizing Social Security is compelling. Privatization provides the means to end poverty among the working poor. It ends poverty, not by a gift or by taking something from others, but by simply allowing people to keep what they have earned. Overtime, the buildup of assets leads to an appreciation that even the most menial job provides value and dignity to those doing the work. Once it becomes apparent that the much-maligned hamburger flipper can accumulate great wealth, both the flipper and those who disparage such work will have a greater appreciation for its value. To view the report go to The Moral Case for Privatizing Social SecurityDr. G's Cost-Benefit Analysis of Social Security reform indicates that establishing private accounts are so powerfull that it isn't necessary to cut benefits
>To view the report go to Social Security Reform: A Cost-Benefit AnalysisTo view the worksheets underlying the analysis go to Social Security worksheets
