Value of the U.S. DollarThe value of the U.S. dollar can be measured in three ways - exchange rates, Treasury yields and foreign currency reserves. find out how the worth of the American dollar compares using these three methods, and how changes in the dollar's value affects the US economy.
U.S. National DebtA description of the US national debt, how the US debt got so large, and who owns it. How the US debt impacts you and the economy.
Dollar Collapse ImminentIs the U.S. dollar in danger of an imminent collapse? What would cause the dollar to collapse? If the dollar does collapse, what will happen? What is the best way to protect your finances against a dollar collapse?
Cause of RecessionThe causes of economic recession and the major causes of both the 2008 and 2001 recessions.
ObamacareWhat is Obamacare? Find out the facts about its costs. Opponents want to repeal it because they say its unconstitutional. What are the full pros and cons of this controversial health care reform law.
Why Are Gas Prices So High?High gas prices are caused by high oil prices, which are usually caused by supply and demand. More recently, high gas prices have been caused by oil futures speculation.
Great Depression of 1929Causes of the Great Depression of 1929. Life during the Great Depression of 1929. What ended the Great Depression. Unemployment during the Great Depression
History of NAFTANAFTA was negotiated by President H.W. Bush in 1992 and enacted by President Clinton in 1994. Its purpose was to increase trade between the U.S., Canada and Mexico. Find out the history of NAFTA, and whether its achieved its purpose.
Economic Stimulus PackageWhat was in President Barack Obama's economic stimulus package?
GDPDefines GDP and describes how Gross Domestic Product acts as the most important economic indicator of the US economy. Most important, explains how GDP affects you.
NATOThe purpose of NATO has expanded beyond the historial reason why it was created, which was to defend Europe. In recent years NATO countries have fought terrorism in Afghanistan, protected civilians in Libya, and combated piracy in the Indian Ocean. The existence of NATO set the stage for today's economic alliances, as well.
Fiscal YearA Fiscal Year can start in any quarter. Find out why companies and the U.S. government use fiscal, rather than calendar, years. See when each Federal Fiscal Year starts, and summaries for each budget from FY 2006 to the most current.
Auto BailoutThe specifics of the auto bailout received by GM, Ford and Chrysler. What the Big 3 promised to give back in return. How the government bailout of the auto industry affected the economy.
Business CycleDefinition of a business cycle, including the stages of a business cycle and business cycle indicators. The meaning of the business cycle in economics. What GDP growth rate you should expect in each phase of the business cycle.
Advantages of NAFTAThe advantages of NAFTA for Mexico, Canada and the U.S. include an increase in trade which has contributed to economic growth.
Disadvantages of NAFTANAFTA cost many workers their jobs in the U.S., and led to exploitation of workers in Mexico. Find out the other disadvantages of NAFTA, and why NAFTA had so many ill effects.
Hurricane Katrina DamageThe effects of Hurricane Katrina's damage to the U.S. economy still linger. Why was Katrina the most destructive natural disaster in U.S. history? Many factors contributed, including Katrina's path through the Gulf oil fields and the heavily-populated City of New Orleans. The damage was worsened when the levees broke, causing massive flooding.The facts around Hurricane Katrina's damage.
Unemployment SolutionsA summary of the most popular unemployment solutions. There are many solutions proposed for unemployment, but which ones really work? Monetary policy feeds liquidity to employers, but what if they still don't hire? Fiscal policy through spending puts cash into the economy right away. Or fiscal policy cuts personal taxes, which might stimulate demand. If it cuts business taxes, then that works like monetary policy -- both add cash to businesses. What's the most cost effective solution?
How Is Unemployment Defined?Definition of unemployment, including the difference between the real, natural and structural unemployment. How unemployment statistics are used, and causes and consequences of unemployment.
What are Treasury Bonds?Treasury bills, bonds and notes have different maturities. Notes are issued at 2,3,5 and 10 years (the most popular). Treasury notes fund the U.S. debt, and their yields are the benchmark for bank interest rates.
Components of GDPWhat are the four general components of GDP? Find out what makes up those components, and why personal consumption drives more than 70% of the economy.
GDP Growth RateDefines the difference between the measurement of GDP and the GDP growth rate.
LiquidityWhat is liquidity? It has two different definitions. In the economy, liquidity means how much money there is to spend and invest. In business, liquidity is defined as how easily an asset can be converted to cash.
GDP Current StatisticsThe economy grew 2.2% in the first quarter 2012, according to the BEA's Final estimate. Find out why, and compare it to each quarter's GDP statistics, with links to each GDP statistical report from Q4 2006 to the current quarter.
U.S. Recession HistoryThe history of recessions in the United States since the Great Depression. How long ago was the last recession, and how long it lasted. The major causes of each recession.
What Is Inflation?Inflation is defined as when prices rise over an extended period of time. However, this definition doesn't take into account the types of inflation, and what causes them. Understand all this, as well as how inflation impacts your life, so you can best protect yourself.
What Makes Oil Prices So High?Oil prices breached $100 a barrel in February 2012. This was earlier than in 2011, when prices hit a recent peak of $113 in April. Will prices go as high as in 2008, when they hit an all-time record of $145 a barrel? Find out why high oil prices are not just based on supply and demand.
BankingWhat is banking? The definition of banking, its critical role in the US economy, and how that has changed.
China EconomyChina's growing economy makes China a major influence in the U.S. economy. China's low standard of living allows it to export cheaply, keeping U.S. inflation low. China is the largest buyer of U.S. Treasuries, which keeps U.S. interest rates low. Find out how the economies of China and the U.S. are interdependent.
Bank Bailout BillWhat exactly was in the 2008 bank bailout bill, both as it was initially submitted and how it was eventually carried out. How much of the $700 billion bill was actually spent, and how well did it address the financial crisis?
The U.S. Trade DeficitThe U.S. trade deficit in 2011 was just under $560 billion. It was driven by imports of oil, consumer products and automobiles. The top four trading partners are Canada, China, Mexico and Japan.
Gas and Oil PricesThe relationship between oil and gas prices, how crude oil prices affect gas prices, and how both affect the US economy.
Mitt Romney 2012 Economic PlanRepublican 2012 Presidential Candidate Mitt Romney's economic plan is focused on undoing what Obama has done. Like many other Republican Candidates, Romney believes the economy will right itself with lower taxes and reduced government spending. Unlike the other candidates, Romney describes exactly what he would do on Day One, if elected President. What would be the economic impact of Romney's Presidency, and what is Romney missing?
Impact of InflationThe consequences of inflation and the effects of inflation on buying power.
U.S. Trade Deficit with ChinaThe US trade deficit with China is the largest in the world, and a symptom of global economic imbalance. Find out why there a deficit, and what is being done to correct it.
U.S. Debt and DeficitThe US Deficit contributes to the US Debt, and vice versa. As both escalate, they negatively impact economic growth.
Treasury YieldsWhat exactly are U.S. Treasury yields and how yields are determined. Understand the relationship between Treasury bond prices and Treasury yields. Find out how Treasury yields affect mortgage interest rates, and the U.S. housing market.
Unemployment RateExplains what the national unemployment rate is, why it is important, and how it affects the U.S. economy. Explains how the unemployment rate affects you.
New Home BuilderNew home builders have been hit hard by the recession. Some even blame overbuilding by new home builders for causing the housing bubble that created the recession. Find out how new home builders affect the economy.
Japan Earthquake ImpactHow the 2011 earthquake in Japan affects the global economy.
The Dust BowlWhat was the Dust Bowl of the Great Depression, why did the Dust Bowl happen, and could the Dust Bowl happen again?
Control InflationWhat is the Federal Reserve doing to control inflation? Find out the tools the Fed uses to manage inflation and even the expectation of inflation.
Federal Reserve SystemThe Federal Reserve System was created in 1913 to be the nation's central bank. Its primary function is to manage inflation. It does with monetary policy, which includes setting interest rates through the Fed funds rate, the discount rate and the discount window. The Federal Reserve Banking System also manages banking liquidity and the money supply through the reserve requirement and many bank regulations. The Federal Reserve is directed by its Board of Governors, which sit on the FOMC. Find out how the Federal Reserve System functions and how it affects you.
Trade ProtectionismTrade protectionism is how countries try to protect their domestic industries. What is trade protectionism, how does it work, and what are the advantages and disadvantages?
How Are Oil Prices Determined?An easy-to-use description of the factors that impact oil prices in the commodities market.
LIBOR RatesThe LIBOR rate is what banks charge each other for short-term loans. It's usually close to the Fed funds rate, which is for overnight loans for members of the Federal Reserve banking system. If LIBOR diverges, as it did in 2008, it's a sign that a financial crisis is imminent.
U.S. Federal Budget DeficitThe U.S. Federal budget deficit hit a record of $1.4 trillion in FY 2009. Stimulus spending wasn't the only reason. There were three other factors, and only two of them had anything to do with the financial crisis. Find out what really caused government budget deficits, how they affect the U.S. economy and why you should be concerned.
Financial Markets IntroductionAn introduction to the financial markets, including a definition of financial markets, a description the components of the financial markets and how the markets impact the U.S. economy.
MonopolyDefinition of monopoly and how monopolies used to threaten the U.S. economy by restricting free trade.
Dollar Decline or CollapseReasons for the decline in the value of the US dollar, why it won't collapse, and what you can do about it.
Crude Oil Prices DefinitionHow crude oil prices are measured, recent oil prices and current oil price trends. Where will oil and gas prices go in the next year?
U.S. Unemployment Rate StatisticsThe unemployment rate for April 2012 dropped to 8.1%. Here's all the current unemployment rate statistics for every month from April 2007 to the most recent report.
Economic DepressionDefinition of economic depression.Why a depression won't happen again. How a depression was averted in 2008. The cause of the Great Depression of 1929.
Dow Jones HistoryA brief history of the Dow Jones Averages since the Great Depression.
FY 2013 Military BudgetAn summary of the US Military Budget for FY 2013, and how defense spending affects the U.S. economy. How the Department of Defense can cut spending without threatening national security.
Federal Funds RateThe definition of the Federal funds rate is the target interest rate banks charge each other to borrow funds overnight to maintain the Federal Reserve's reserve requirement. More important, the Fed funds rate is critical because it dictates the availability of capital in the economy. That's how the Federal Reserve uses the Fed funds rate is to manage the U.S. economy, especially inflation.
What Is a Recession?What is an economic recession? Most textbooks say that a recession is when you get two consecutive quarters of economic contraction. However, most recessions don't go by the book. Find out what a recession really is, and, most important, how it affects you.
A Primer on Interest RatesBasic primer on interest rates, including Fed funds rate, Treasury Bonds, mortgage interest rates and the rates on revolving and non-revolving interest rates. Explains how different interest rates are determined. Discusses future interest rate trends, and the impact of an inverted yield curve.
What Are Exchange Rates?Exchange rates determine how much the dollar, or any other foreign currency, is worth compared to another country's currency. Exchange rates can be fixed or flexible. Find out how exchange rates change over time, and how they affect the U.S. economy and your life.
Black TuesdayBlack Tuesday was a stock market crash that kicked off the Great Depression of 1929. What is Black Tuesday and what caused it.
Causes of InflationThere are three major causes of economic inflation: demand-pull, cost-push and monetary expansion. However, there are many circumstances that lead to those causes -- including the expectation of inflation itself. Regardless of the causes, the effects of inflation are devastating and difficult to counteract.
CDOsCDOs, or Collateralized Debt Obligations, are a derivative that contributed to the banking liquidity crisis and subsequent recession. Banks repackaged loans, including subprime mortgages, credit card debt and corporate debt, and sold them to investors who didn't really know the value of what they were buying. Neither did the banks.
Real GDPWhat is real GDP? Find out the difference between real and nominal GDP. Learn how to calculate real GDP.
What Are Hedge Funds?Hedge funds are usually defined as private investment funds. They promise great rewards, but also present great risks to both investors and the economy. Investments by unregulated hedge fund managers contributed to the global crisis in 2008. Find out what hedge funds really are, how they work, and whether their high returns are worth their high risks.
Stock Market Crash of 1929The Stock Market Crash of 1929 kicked off the Great Depression. Find out the facts behind this devastating crash, what caused it and what the effects were.
Contractionary Monetary PolicyContractionary monetary policy definition and how the Federal Reserve uses it to avoid inflation. Examples of contractionary monetary policy, including how it caused the Depression and deflation.
Subprime Mortgage CrisisThe subprime mortgage crisis put the U.S. economy into the worst recession since the Great Depression. Find out how the subprime mortgage crisis unfolded, affecting first the real estate market and then the economy overall. It gives you definitions of important terms. It also explains how interest rates and real estate play an integral role in the U.S. economy. Finally, it provides resources for those who are suffering from the subprime mortgage crisis directly.
Value of a Dollar TodayThe value of a dollar today is less than it was in the past, thanks to inflation. Calculate the value of a dollar compared to different times in the past.
Natural Unemployment RateThe natural unemployment rate is the amount of unemployment that even a healthy economy will have simply due to job turnover, mismatch between jobs and skills, and minimum wage laws.
Savings and Loans CrisisThe Savings and Loans Crisis in the late 1980's resulted in the bankruptcy of half of the Savings and Loan banks in the U.S.
History of the Gold StandardA brief history of the gold standard, including when the U.S. went off the gold standard, and why.
FY 2013 Mandatory BudgetAn easy-to-understand analysis of the FY 2013 Federal Budget for mandatory spending programs. The outlook for Social Security and health care, such as the Medicare and Medicaid programs. What can be done to solve the mandatory budget dilemma. Whether Social Security will go bankrupt.
What Is Deflation?What exactly is deflation? A simple definition is that it's when prices fall. But deflation is actually a greater threat to the economy than inflation.
SecuritiesSecurities is a term used to loosely describe stocks, bonds and other investments. Securities allow ownership of corporations and other investments without taking physical possession. They are usually highly liquid, allowing you to sell them easily on the secondary market.
Dodd-Frank Reform ActThe Dodd-Frank Wall Street Reform Act regulates the financial practices of Wall Street to prevent another financial crisis. Here's a summary of the Act, along with an overview of the new consumer protection regulations it provides. You are probably benefiting from many of them, and don't even know it.
Supply-side EconomicsSupply-side economics is an important economic theory that states that tax cuts stimulate the economy enough to recoup any lost revenue. This profile analyzes the studies that show whether this is true or not.
Health Care ReformHealth care reform will cost billions, but will also save the economy billions in sick time, emergency room costs and improved child care. Find out the economic impact of health care reform.
FY 2013 Discretionary BudgetAn easy-to-understand summary of the U.S. Federal Budget's discretionary spending programs, including Defense, Education, Housing and Urban Development, State Department, Health and Human Services and NASA. How it affects the U.S. Economy.
Interest RateA definition of interest rates, including the APR. How interest rates work to stimulate or slow economic growth.
Facts About NAFTAFacts about the NAFTA agreement, including history of NAFTA, the benefits and problems with NAFTA for it members Mexico, Canada and the U.S.
Obama's Economic PoliciesA summary of Barack Obama's economic policies, plans and programs since becoming President in 2009.
Global Warming ConsequencesEffects of global warming on the economy and the facts about its consequences.
What Is the Gold Standard?What the gold standard is, and why a return to the gold standard would adversely affect the U.S. economy
CPIThe Consumer Price Index (CPI Index) measures U.S. price changes each month. Find out how it's used to measure inflation and deflation, the importance of the Core CPI, and exactly how it's calculated.
Expansionary Monetary PolicyA definition of expansionary monetary policy.
Greece Debt CrisisThe debt crisis in Greece threatened the entire concept of the eurozone, and put the brakes on the global economic recovery. What were the reasons behind the economic and financial crisis of Greece? Find out what happens if Greece defaults, if Greece leaves the eurozone, and what the likely solution will be.
World BankThe World Bank's purpose is to provide financial and technical support to developing countries.Its history dates back to 1944, when it was started to finance the reconstruction of Europe after World War II. Since then, it also provides extensive statistics about the world's economy.
US Federal Budget SpendingA summary of the US Federal Budget, with a focus on FY 2013. Understand how mandatory programs now account for 60% of total spending. Did you know the single largest budget item is defense spending? Find out where your tax dollars go.
Japan EconomyBefore the 2011 earthquake, Japan's economy was emerging from deflation and recession. Find out how what caused Japan's recession, and how Japan's economy affects the U.S. economy.
Mortgage-backed SecuritiesWhat are mortgage-backed securities? Just like the name says, they are securities that are backed by mortgages. This innovative investment revolutionized the housing industry by providing banks more money to make loans. All went well, until housing prices went south.
IMFThe IMF, or International Monetary Fund, to the U.S. economy is based in part on the IMF's history.
9/11 Attacks Economic ImpactThe 9/11 attacks had long-ranging economic impacts. Not only did they deepen the 2001 recession, they led to the War on Terror. These costs helped create the largest debt in U.S. history.
Gold PricesGold prices say a lot about the health of the U.S. economy. When gold prices are high, the economy is usually either in crisis or inflation. When gold prices are low, the economy and the stock market are healthy. Learn about how gold should used by investors, the history of gold, and more about the gold standard.
What Is the US Debt to China?The U.S. debt to China was more than $1 trillion in 2011. This was 25% of the U.S. debt owned by the public. Find out how the U.S. got in this predicament and how it threatens its economic growth and independence.
What Is NASDAQ?Definition of NASDAQ. Explains what the acronym NASDAQ stands for, and how many companies are traded on NASDAQ.
Subprime Mortgage Crisis CauseThe subprime mortgage crisis has put the U.S. economy into the worst recession since 1982. This primer explains the innovative financial tools that allowed lenders to lend to subprime borrowers without taking responsibility for the risk of future default. As adjustable mortgage interest rates reset, and borrowers defaulted, these tools spread that risk into every corner of the globe. This has created a widespread crisis that shows no signs of ending.
LIBOR Rate HistoryThroughout its history, the LIBOR interest rate has been close to the Fed funds rate, except during the 2008 financial crisis. Compare the LIBOR rate to the Fed funds rate during that time. Understand when, how and why LIBOR was created.
What Are Stocks?A definition of stocks.
The Second Great Depression?Is the U.S. headed towards the Second Great Depression? The financial crisis left the economy in a weakened state. Recent news developments lead many to believe another depression is inevitable if it hasn't started already. Here's the arguments pro and con,and what the probable outcome will be.
RecessionDefinition of recession, including the technical definition of recession and the general definition of recession.
Obama and Bush EconomyFind out the similarities and differences between the economic policies of President Obama and President Bush.
Purchasing Power ParityUnderstand purchasing power parity and you can compare the standard of living in one country with another.
EU Now World's Largest EconomyThe EU has replaced the US as the worlds largest economy
HoovervilleThe Farm Security Administration hired photographers to document the living conditions of the Great Depression. They are a landmark in the history of documentary photography. The photos show the adverse effects of the Great Depression and the Dust Bowl. Some of the most famous images portray people who were displaced from farms and migrated West or to industrial cities in search of work.
Haiti Earthquake ImpactCredit card companies profit from donations to charities such as Haiti's earthquake relief efforts.
Mexico's EconomyMexico's economy is larger than that of Canada, Spain or South Korea. It's the same size as Saudi Arabia, but exports just 25% of the oil. Mexico's economy is dependent on the U.S., which is both a help and a hindrance.
Obama and Health Care ReformA summary of Obama's plans to reform health care and how it affects the economy.
Global Financial Crisis of 2008What was the global financial crisis of 2008? What were the causes and effects? How did it impact the world and U.S. economy?
Patient Affordable Care ActA summary of the Patient Protection and Affordable Care Act of 2010. Timeline of how the impact of the Act will roll out.
Ideal GDP Growth RateThe ideal GDP growth rate is one that enable the economy to grow at a healthy rate. If growth is too fast, the economy risks inflation. If growth is too slow, the economy risks recession or even depression.
WTO Membership BenefitsMembership in the WTO (World Trade Organization) confers many trade benefits to its members. That's why 153 countries are members. Find out who they are, and why WTO membership is important to them and to the global economy.
OPECWhat is OPEC, who are OPEC members, and how does OPEC affect oil prices?
Cultural DiversityWhat is the definition of cultural diversity, especially cultural diversity in the workplace.
Real Estate Affect on EconomyAn easy-to-understand description of real estate, both commercial and residential, and how it affects the U.S. economy.
Current Employment StatisticsCurrent employment statistics: In April 2012, 115,000 jobs were added to the economy. Behind the scenes, there were major sector winners. Find out the monthly Bureau of Labor employment statistics since January 2008.
StagflationStagflation is when economic growth stagnates while inflation is rising. This can only happen under unusual circumstances, and probably won't happen again. Find out why.
Trickle-Down EconomicsThe theory of trickle-down economics promises that reducing taxes on the highest income population fuels economic growth. It seemed to work during the Reagan Administration, but did it really? More importantly, does it work today?
Credit Default SwapsCredit default swaps were supposed to protect lenders against debt default. Instead, they provided a false sense of security that helped create the Greek debt crisis, the 2008 financial crisis, and even JPMorgan's recent loss.
Monetary PolicyA definition of monetary policy and how monetary policy affects the U.S. Economy.
Imports and Exports ComponentsTwo of the largest components of U.S. imports are oil and consumer goods. Even though the U.S. exports many of the same things it imports, it has a trade deficit. However, it has a trade surplus in services. Find out the details on U.S. import and export components.
Panama Canal ExpansionEvaluates the impact of the Panama Canal expansion on the U.S. economy.
Other Fed ToolsThe Federal Reserve uses many tools in addition to the fed funds rate. These tools prevent inflation and shorten recessions. These Federal Reserve tools include reserve requirements, discount window, and the money supply (M1 and M2). In addition, the Fed created many new tools to deal with the Great Recession.
Federal Reserve Interest RatesThe current Federal Reserve interest rate is between zero and .25%. It was lowered by 1/2 point on December
Exxon Valdez Oil Spill EffectEstimates of the economic impact of the Exxon Valdez oil spill.
PegMany countries peg their currency to the dollar. This means they use a fixed exchange rate to keep the value of their currency at a certain level relative to the dollar. Find out how they do they, and why.
What Are Commodities Futures?An easy-to-use definition of commodities futures, how they work, and the investment risks.
What Are Commodities?A definition of commodities, the commodities markets and how commodities futures work.
DerivativesA definition of how financial derivatives, such as options and futures contracts, are used in to trade in the stock market.
Reagan's Economic PoliciesA summary of President Ronald Reagan's economic policies, Reaganomics, supply-side economics and the recession of 1981.
Eurozone CrisisThe eurozone crisis
Most Favored Nation StatusMost Favored Nation Status definition, and what is the Most Favored Nation Status. Why the Most Favored Nation Status is important
Fiscal PolicyA definition of fiscal policy with links to descriptions of the components of fiscal policy, including revenue, taxes, mandatory spending, discretionary spending, and the budget deficit.
Income Inequality in the U.S.Incomes have become more unequal in the past 30 years. What is the cause, what can be done about it, and how does it affect you?
Mississippi River FloodsRecord flooding from the Mississippi River caused hundreds of millions in damage in May 2011. How much damage do Mississippi River floods cause, and how do Mississippi River floods affect the economy? What can be done to prevent further worsening do Mississippi River floods?
GCCThe Gulf Cooperation Council and its members represent the growing power of the Gulf oil-exporting countries. A list of GCC countries include every country in the Arab Peninsula except Yemen.
Current Inflation RateThe current inflation rate (February 2012, the most recent month) is .4%, driven by rising gas and oil prices. When compared to last year, the inflation rate is 2.9%. Why is this good for economic growth, and how does it compare to prior months?
Inelastic DemandInelastic demand is when people's buying habits don't change, even when the price does.
multilateralThe definition of multilateral trade agreements.
US Federal Budget BreakdownA breakdown of the U.S. Federal Budget, including: assumptions about the U.S. economy,revenue projections, discretionary and mandatory spending proposals, and the impact of deficit spending.
Fannie Cause Mortgage CrisisDid Fannie Mae and Freddie Mac alone cause the mortgage crisis?
Trade DeficitThe trade deficit is when a country imports more than it exports. Find out what causes a trade deficit and what are the effects. Understand the difference between a trade deficit and a trade surplus.
Year-Over-Year Growth RateDefinition of the year-over-year growth rate, how to calculate it, and why using it gives a better sense of a trend than comparing month to month or week to week.
GDP Per CapitaWhat is GDP per capita? Why understanding the definition of GDP per capita is important. GDP per capita by country for 2010 for the ten richest and ten poorest countries.
Unemployment ControlsHow the government controls unemployment.
FY 2012 Federal BudgetAn easy-to-understand summary of the U.S. Government's Federal budget for FY 2012. Includes income and taxes, as well as spending highlights. This includes discretionary, including military spending, and mandatory, including Social Security, Medicare and Economic Stimulus spending. Discusses the budget deficit and impact on economic growth.
Iceland Financial CrisisThe financial crisis in Iceland in 2008 led to its bankruptcy. Find out why the same could not happen in the U.S.
Stocks and U.S. EconomyA brief description of how stocks and stock investing affects the U.S. economy.
Regulate Exchange RatesAn explanation of how the government regulates exchange rates.
Subprime MortgagesA definition of subprime mortgages, which are granted to borrowers with less than perfect credit.
YuanThe currency of China is the renminbi or yuan. exchange rate to the U.S. dollar is guided by the Chinese government to allow cheap exports to the U.S. However, China has been allowing the yuan/U.S. dollar exchange rate to rise to combat inflation. Find out how this affects China's holdings of U.S. Treasury debt.
Mandatory SpendingWhat is mandatory spending within the U.S. budget? It's the largest budget item, and includes Social Security, Medicare, Medicaid and now TARP. It's mandated by Federal law, and cannot be changed without an act of Congress.
ARRA DetailsDetails of the American Recovery and Reinvestment Act, better known as ARRA.
2012 Obama SOTU AddressA summary of the 2012 Obama State of the Union Address and how its proposals would impact the economy.
US Department of TreasuryThe US Treasury Department manages Federal Government revenue, collects taxes via the I.R.S., and oversees the public debt. It also prints money and stamps, enforces Federal finance laws and freezes the finances of terrorists. Find out what else this critical government agency does, and how it affects you and the U.S. economy.
Consumer Debt StatisticsWhat are the statistics on average consumer debt? Studying these statistics show how consumer debt was one of the key forces of economic growth from 2000-2008, and created the housing bubble. Then, during the Great Recession, banks cut back on consumer debt lending just when the economy needed it the most.
Jobs OutsourcingJobs outsourcing has sent American jobs to foreign workers. Find out the types of jobs outsourcing, and how outsourcing jobs has affected the U.S. economy.
Chernobyl DisasterThe economic consequences of the 1986 Chernobyl nuclear power plant accident affected not only Russia, Ukraine and Belarus, but also the global economy. What we can learn from Chernobyl for the U.S. economy.
ReaganomicsReaganomics promised to slash government spending and taxes to stimulate the economy out of stagflation and the 1980 recession. It worked, but at a cost. Reagan was fortunate that he had Fed Chairman Paul Volcker ready to combat double-digit inflation. More important, Reaganomics would not work today, because conditions have changed significantly.
Power of the U.S. DollarThe power of the US dollar means that it is in little danger of a collapse. This strength comes from its position as an international currency and its backing by the power of the US economy.
Stock Market CorrectionThe difference between a stock market correction and a stock market crash.
Banking Crisis InterventionBanking Crisis - Federal Intervention in the Banking Crisis
EuroWhat is the euro? A summary of the euro's history, what countries are in the eurozone, the euro crisis, and how to convert the euro to other currencies like the dollar and pound. This will give you the impact of the euro on the U.S. economy.
Quantitative EasingA definition of quantitative easing, including QE2 and Operation Twist. Why the Federal Reserve adopted this policy and whether it works. The effects of quantitative easing.
NASA BudgetHow much does NASA cost? What's the impact of the NASA budget on the U.S. economy.
European UnionThe European Union (EU) is the largest economy in the world. It got that way by lowering trade barriers, which was its basic purpose. It was formed in 1993 by the Masstricht Treaty and currently consists of 27 member countries. In 2002, the eurozone was formed around a common currency. The nature of the EU is changing daily thanks to the eurozone crisis.
Bonds and the Stock MarketAn easy-to-use description of how bonds and stocks are different, and how the two market interact.
How Is Employment Defined?Definition of employment by the Bureau of Labor Statistics. How to use employment data to gauge the health of the U.S. economy
Mortgage Bailout PreventionThe current mortgage crisis and bailout could have been prevented a year ago if the government had responded quickly enough to the signs.
Food Price InflationFood prices are forecast to rise 2.5-3.5% in 2012. Find out the real reasons why, how rising food prices affect the global economy, and why food price inflation will be a concern for years to come.
Bonds Impact on MortgagesTreasury bonds directly affect fixed-rate mortgage interest rates because they are bought on the secondary market by similar types of investors. Treasury bonds are much safer, so their rates are lower. As Treasury rates rise, so do mortgage interest rates. Find out exactly how this works, and how it affects the economy.
Current Account DeficitA current account deficit occurs when a country has to rely on foreign investors to fund its economic growth. Find out the causes and consequences of a current account deficit.
Secondary Mortgage MarketHow mortgages are sold by the banks to investors.
DeregulationDeregulation is when the government seeks to allow competition in highly regulated industries, usually some form of utility.
Euro to Dollar ConversionWhat is the euro to U.S. dollar conversion? What the recent history of the euro to dollar conversion rate. How is the euro to U.S. dollar conversion rate determined?
ExportsDefinition of exports and how exports impact the U.S. economy.
BondsProvides an easy-to-use definition of bonds and how they are used.
Bilateral Trade AgreementDefinition of bilateral trade agreements.
TARP ProgramWhat is TARP funds, and what is TARP funds to be used for? An explanation of the TARP capital purchase program.
G-20A profile of the G-20 and why it is so important to the U.S. economy.
Inverted Yield CurveInverted yield curve definition, why it happened in 2006, and why inverted yield curves forecast a recession. Find out why economists ignored the warning before the financial crisis of 2008 -- and why they shouldn't have.
Who Owns the U.S. Debt?Who owns most of the U.S. national debt? Most of the news focuses on China's #1 position as the largest foreign holder of U.S. debt. The true answer is surprising...it's the U.S. government itself. How does that works, and what does it mean?
Germany's EconomyFacts about Germany's economy and GDP, the largest in Europe. Find out its impact on the EU and the U.S.
U.S. Current Account DeficitThe U.S. current account deficit was $473.4 billion in 2011, climbing slightly after falling during the financial crisis. As the deficit rises again, find out why some think it may be the greatest single threat to the global economy.
Natural DisastersNatural disasters are a greater economic threat than terrorism according to Warren Buffett. The cost of hurricanes, floods, tornadoes and earthquakes seem to be increasing. What impact do these natural disasters have on the economy?
Asset BubbleAn asset bubble is when there is an inflation in specific assets, such as real estate or commodities. They may not show up in the overall inflation measurements, so are often ignored by the Federal Reserve and other inflation fighters. Find out how to recognize asset bubbles, and how to protect yourself.
Demand-Pull InflationDemand-pull inflation is the most common cause of inflation. It's when the demand for a good or service becomes much greater than supply, allowing producers to raise prices. Find out the circumstances that create demand-pull inflation as illustrated by examples.
Types of InflationThere are many different types of inflation, from hyperinflation to stagflation and even deflation. Furthermore, inflation can attack different asset classes. This asset inflation can show up in food, gas and oil prices. Find out how the different types of inflation can devastate the economy, even when general inflation is not a threat.
Treasury Notes Mortgage RatesExplains the Relationship Between Treasury Notes and Mortgage Rates.
Budget DeficitThe U.S. budget deficit occurs whenever the government spends more than it makes, which is nearly every year. Find out why this occurs, how it leads to debt, how the deficit is financed
Competitive AdvantageA competitive advantage is what distinguishes you from all others. Whether you are an employee, a business or a country, you need to have a clear competitive advantage and communicate it to your customers.
Stock Investing BenefitsDefinition of stock investing and the benefits for the individual investor.
Discretionary Fiscal PolicyWhat is discretionary fiscal policy? It's probably the most hotly contested portion of the budget, yet it's not well understood. Find out how discretionary fiscal policy can prevent depressions, but usually heats up bubbles till they burst.
U.S.A. National Debt ClockThe USA national debt clock tracks the U.S. debt. Find out the history of the debt clock, where it is and what other ways you can measure the ever-increasing U.S. debt.
What Was the LTCM Crisis?The Long Term Capital Management hedge fund was a highly respected investment company that used derivatives to earn high returns, until it collapsed. The LTCM crisis could have spread globally without the intervention by the Federal Reserve -- although some critics say it wasn't necessary.
Irrational ExuberanceIrrational exuberance is why investors create a stock market bubble.
MSCI IndexEach MSCI Index measures a different aspect of global stock market performance. The two most widely quoted indices are the MSCI World Index and the MSCI EAFE Index.
Money SupplyThe money supply includes cash and all forms of credit, which is becoming by far much more important than cash. The Federal Reserve measures the money supply, and used to manage it. However, since 2000, the Fed stopped setting money supply targets because it is no longer really correlated to economic growth. Find out why.
Reserve RequirementThe Federal Reserve requires that banks in reserve a certain amount of cash on hand each night.
Savings and LoansSavings and loans (S&L's) are special types of banks created to promote home ownership.
FY 2011 Federal BudgetAn easy-to-understand summary of the U.S. Government's Federal budget for FY 2011. Includes income and taxes, as well as spending highlights. This includes discretionary, including military spending, and mandatory, including Social Security, Medicare and Economic Stimulus spending. Discusses the budget deficit and impact on economic growth.