Econ-Intel: Crucial Economic Intelligence

About us:

Our mission and purpose are simple. We are dedicated to bringing you the best in economic news, analysis, and data. Our goal is to provide you with an understanding of economic developments and their potential consequences. We strive to dive deeper and dig further than most other sources. All while making the topic easy enough to understand. We are independent from any political parties and do not accept funding from any political organization. That way, our work remains independent and unbiased by outside controlling forces. 

We are steadfastly committed to accurate journalism and want to hear from you if you believe that we made a mistake, so that we can investigate and correct it as necessary. Email [email protected] to reach our writing and editorial team.

Surprising Economic Insights – Our Track Record.

As far back as November 22, 2022, we cautioned that the Fed’s removal of the reserve requirement threatened the banking system.

Further delays in re-establishing a reasonable reserve requirement jeopardizes the future stability of the US banking system.  The current policy of tightening offers a rare opportunity. The Fed could re-implement reserve requirements to tighten the money supply and increase the stability of the banking system.

At this point in time, there had been no bank failures in the United States for over two years. So, such a possibility seemed remote to most. However, within a few months, on March 10, 2023, Silicon Valley Bank failed. At the time, this was the 2^nd largest bank failure in U.S. history. Days later, on March 12, 2023, Signature bank failed, which was, at the time, the third largest bank failure in U.S. history.

The same day, the Treasury, Federal Reserve, and FDIC issued a joint statement. The concluding paragraph of the release began, “The U.S. banking system remains resilient and on a solid foundation.”

However, Econ-Intel monitors the financial figures and knew about the enormous amounts that banks were borrowing from the Fed. So we were aware of the strain on the banking industry. On March 27^th, we published Bank Failures: Solved or Just on Hiatus? which stated our reasons for being skeptical about the “everything is just fine” message that was being promoted. Shortly thereafter, on May 1st 2023, an even larger bank failed – First Republic Bank. So, since our warnings, the 2^nd, 3^rd, and 4^th largest bank failures in U.S. history occurred in relatively rapid succession.

Data Driven Independent Analysis

If you are looking for analysis of the economy from a team that follows the figures and their analysis regardless of what everyone else is saying, you have found your new source.

Jump right in by reading one of the articles below or exploring our dashboards and data series located in the menu above. Be sure to sign-up for our newsletter to stay informed about the changing economic landscape.

• The Root Cause of Inflation: Understanding Why it’s High
  The root cause of Inflation is the change in the ratio of money to the goods and services produced. The recent growth of the money supply has been massive and rapid. This coupled with a dramatic decrease in production and the resulting supply chain disruptions is the root cause of inflation. Other factors, such as expectations, play a role in the timing and pace of inflation. However, it is misguided to ignore money supply and production to focus on secondary items. Inflation is a virtual certainty when the money supply increases enormously and production drops dramatically. Ignoring this fact sidetracks… Read More »The Root Cause of Inflation: Understanding Why it’s High
• Does Greed Cause Inflation? Some Perspective
  Some Call it Greed Does greed cause inflation? You have probably come across some variation of this statement, “Greedy corporations charging higher prices causes inflation”. But, is it true? Is greed the root cause of inflation? So, does greed cause inflation? The argument basically goes like this: The firm sees rising prices and takes that as an opportunity to raise prices. Let’s examine if this argument makes sense. Generally, firms will charge the profit-maximizing price at all points in time. If they could just raise prices to make more money, they would have already done so. The reason that they… Read More »Does Greed Cause Inflation? Some Perspective
• Bank Failures: Solved or Just on Hiatus?
  The bank failures of Silicon Valley Bank and Signature Bank were significant economic events. These failed banks were taken over by the FDIC on March 10th and 12th, respectively. Regulators worked to calm the market on March 12th by issuing a statement that the banking system, “remains resilient and on a solid foundation.” To really understand what is happening, let’s examine the banking data directly. Recently released figures now allow for a look at how banks are actually handling the situation. This makes it possible to assess the level of stress remaining in the banking sector. Direct borrowing from the… Read More »Bank Failures: Solved or Just on Hiatus?
• What Really Happened at Silicon Valley Bank?
  What really happened at Silicon Valley Bank? Why did a bank with more than $15 billion dollars in equity collapse from a loss of $1.8 billion dollars? Banking woes at Silicon Valley Bank (SVB) have been widely covered. However, nothing has explained why a $1.8 billion dollar loss led to the collapse of a bank with $209 billion of assets and $15 billion dollars of equity. A $1.8 billion dollar loss alone would not cause this outcome. But, what really happened at Silicon Valley Bank? Reported so far As Silicon Valley Bank’s depositors faced rising interest rates, they began more… Read More »What Really Happened at Silicon Valley Bank?
• Zimbabwe’s Two Front Battle: Inflation & the IMF
  As Zimbabwe fights inflation, its gold coin continues to hold value, even rising slightly. Their gold coin, known as the Mosi-oa-Tunya, has more than held its value. Initially issued at a price of $1823.80 on July 24, 2022, it has risen ever so slightly to $1828.95 as of February 17, 2023, according to the Reserve Bank of Zimbabwe. Meanwhile, inflation rapidly erodes Zimbabwe’s national currency. Zimbabwe’s annual inflation rate at the end of 2022 was 243.8 percent according to trading economics. So far, Zimbabwe’s gold coin has a track record as a solid store of value during this era of hyperinflation. Yet the IMF… Read More »Zimbabwe’s Two Front Battle: Inflation & the IMF

^{Follow us here:}