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Grappling with the Paradox of Theft

July 18th, 2016

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Why are rich countries broke? In Investors Business Daily (and below) I explain “The Paradox of Theft” — As tourists hurry past the National Debt clock near Times Square — which flashes quickly changing numbers topping $19 trillion — many wonder, How can a rich nation like the U.S. owe so much money? I call it the Paradox of Theft. Typically, as a family grows wealthier, it is less likely to fall into deep debt, default and bankruptcy. A family in the top 5 percent of income typically owes half as much as a typical family in the bottom 95 percent.. || Continue Reading →



Brexit — and What’s Next?

July 11th, 2016

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What should the Brits do?  Here’s my Bloomberg radio interview.  The EU does not want to make Brexit easy for the UK, because the EU fears that the Danes and Dutch will scamper away next, following the British example.  To dissuade the Danes and Dutch, the EU would like to extract from Britain, if not a pound of flesh, at least a few more pounds sterling of pain.  How should the Brits respond to sluggish EU bureaucrats?  My advice comes in two steps:  First, buy some furniture polish and shine up a big round, royal oak table in Mayfair.   Second, invite the.. || Continue Reading →



Wall Street Journal has Good Taste

July 8th, 2016

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The Price of Prosperity received a strong review from the Wall Street Journal.  Former editor George Melloan wrote such lovely things about me that I’ve decided to…renew my subscription!  Here’s an excerpt: “Mr. Buchholz wryly observes that when rich nations begin to shatter, “everyone has a comfy bed—but fewer people have a reason to get out of it.” He cites the rising number of early retirees and a doubling of the number of people who have quit their jobs and filed for disability benefits since 1995. . . . Mr. Buchholz was economic adviser.. || Continue Reading →



Come Back to North America, Great Britain!

June 24th, 2016

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Brexit shows how globalization can rip apart alliances.  That’s The Price of Prosperity!  Even though the UK’s economy is growing, an increasing number of Brits resent losing control over their country, amid bigger bureaucracies and waves of immigration.  Polls and betting markets were fooled because closet Brexiteers thought it was impolite to admit their support while dining in polite company.  The Trump campaign should be happy; closet Trumpists don’t talk to pollsters either. For now, traders are pounding pound sterling and attacking stock markets across.. || Continue Reading →



5 Factors that Could Turn America into Another Collapsed Empire

June 9th, 2016

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Have you ever met an Ottoman?  Or a Habsburg?  Neither have I.  Where did they go?  Those empires ruled much of Europe, the Middle East and North Africa.  Nations are just as likely to unravel after periods of prosperity as after periods of depression.  In my just-released The Price of Prosperity, I set out the five factors that unravel countries after they become wealthy.  My widely-shared column in MarketWatch has sparked thousands of comments and was widely shared.  What are the factors:  (1) falling birthrates (2) globalized trade (3) rising debt loads (4) eroding.. || Continue Reading →



Where Have All the Babies Gone?

June 6th, 2016

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We used to size up a man by counting his children.  Now we count Rolex watches, six-pack abs, and Instagram followers.  Take a look at my essay in TIME.  America has more golf courses than McDonalds.  Really.  The Real Threat of an Aging Population



Why We’ll Never Build Another Golden Gate

May 27th, 2016

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When the Golden Gate Bridge opened on May 27, 1937, 200,000 pedestrians strolled and frolicked along its pavement, chomping on 50,000 hot dogs and other treats. In the 1930s it took four years to build this beautiful bridge – while battling fog, rough waters, and the Great Depression. It was completed under budget and ahead of schedule. When no one was willing to finance the bridge, A.P. Giannini, founder of the Bank of Italy, bought up all the bonds. That Bank of Italy grew up to become the Bank of America. It’s a great story, which I tell in New Ideas from Dead Ceos and.. || Continue Reading →



The Time I Beat Johnny Depp: Sneak Preview!

May 19th, 2016

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In a small, windowless room inside a huge, nondescript office building a few miles from Lake Michigan, I recorded the audio for my forthcoming book The Price of Prosperity: Why Rich Nations Fail and How to Renew Them. Listen to a sneak preview here. What does it take to read aloud a 330 page book? Twelve mugs of decaf peppermint tea, 6 cups of caffeinated cappuccino, three bowls of steaming minestrone soup, and a willingness to try out different accents and dialects. Though the book focuses on political economy and history, I also discuss the cultural ideas that underpin countries... || Continue Reading →



Take the Deal, Donald

May 13th, 2016

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Donald Trump hints that U.S. debt might be renegotiated. I’ve got a better idea. I’ve been imploring the Obama administration to issue super-long term debt, 50 or 100-year bonds. Both The Wall Street Journal and Investors Business Daily have published my plea. Today I’m delighted to report that – Ireland has decided to follow my advice. Not the U.S., but formerly bankrupt Ireland locked in 100-year euro-bonds at a measly rate of 2.35 percent. In my forthcoming book The Price of Prosperity, I argue that politicians cheat our children and grandchildren by focusing on.. || Continue Reading →



Castro, Cruises and Beach Reads

May 2nd, 2016

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Cuba welcomes the Carnival Cruise ship Adonia today. It sure beats a raft for escapees. Back in 2008, I penned a novel called The Castro Gene, which featured a young boxer and a megalomaniac hedge fund manager who manipulated financial markets. He bought up shares of Carnival Cruise Lines when he figured out that the U.S. would lift the embargo on Cuba. The Castro Gene back to the Rat Pack era and won some awards. I’m still waiting for the movie! Tell Brian Grazer, Ron Howard and Jake Gyllenhaal. You can find the book on Amazon and Barnes & Noble.