Monitor policy?
With lending still being anemic and the unwillingness of people to borrow or spend money, banks are continuing to grow their cash reserves at a rapid rate. The blog post of  Frank Shostak of The Ludwig von Mises Institute discuses an interesting dilemma that the liquidity trap is causing for some economists (it also has a good explanation of Kayne’s Liquidity trap). The Liquidity trap which according to investopedia is ‘a situation in which prevailing interest rates are low and savings rates are high, making monetary policy ineffective’. In the case of the US, since intere

Sweet Surprise…
I thought I would share something on a lighter note with you all… Here in Illinois (IL), the sales tax is a whopping 10.25%, however, necessities such as food items are exempt and are taxed at a lower 2.5%.  In prior years, candy was taxed at 2.5%. However, under the new regulation (set to increase revenue for the state) Candy is now being classified as a non-food item and thus moving up to the 10.25% bracket. How does one differentiate food from candy? Simple, anything with flour is considered food. Therefore, according to this law Twix and Kit Kat are food items and jolly ranchers are candy. Since it is only a state law, I do not think there is going to be much of a reaction from ca