Money versus Monetary Policy

In his State of the Union address, President Trump declared that America is entering a “Golden Age.” Golden for whom? For a president who lives lavishly in a taxpayer-funded mansion, jets around to weekend golf getaways at taxpayer expense, and dismisses concerns about “affordability” as fake news, life might indeed be gilded. For the rest of […]

From Israel on Monday, Sen. Lindsey Graham (R-SC) pushed for a US war against Iran while acknowledging that US soldiers in the region could get “hit” by Iranian counterattacks, a risk he said was worth it. “Could our soldiers be hit in the region? Absolutely, they could. Can Iran respond if we have an all-out […]

Supertanker Rates Hit Six-Year High: Here's What Driving It Global very large crude carrier (VLCC) rates have jumped to six-year highs due to two recent catalysts: first, a growing war-risk premium tied to the possibility of a US-Iran conflict, and second, ongoing consolidation in fleet ownership that is tightening vessel availability. Let's begin by noting that war-risk insurance premiums are rapidly being priced into VLCC tanker rates. The Strait of Hormuz has once again come into focus as the world's most important energy chokepoint, where any flare-up in a US-Iran...