Broken Finances to Broken Hands

Closing out The Far Middle’s 2023 run, Nick presents a unique sports dedication that continues recent dedications combining sports with several interesting historical angles. For episode 136, Nick explores baseball’s “long forgotten Federal League” of 1913 to 1916. While a failure, it was a “wonderful experiment,” and a great example of “a risk-taking endeavor by doers in the chaotic world of free-market American capitalism.”

From the business of early 1900s baseball, Nick connects to the business of baseball today, specifically the broken finances and unsustainable business model of the San Diego Padres. “It is striking how similar the failed business model and state of the Padres is to a government, say like Illinois or New York City, or corporations that are sitting on shaky business plans, or with the higher education model of today,” says Nick.

Nick moves from the Padres’ financial mess to examining Argentina who faces a similar and more serious financial situation. “The root causes of Argentina's woes are a toxic cocktail of massive government borrowing and lax monetary policy and inflation,” explains Nick, proceeding to examine the similar economic trouble facing Argentina and the United States. While Nick is hopeful newly elected Argentine President Javier Milei can bring about reform, he worries greatly for America if we don’t course correct.

Looking ahead to 2024, Nick explores what the Fed might do with interest rates next year. “Everyone wants a reduction in rates and cuts from the Fed,” says Nick. “But wanting it and getting it are two different things. I'm convinced the Fed will try to start to cut rates soon…But inflation doesn't care. In fact, inflation will flare even more if rate cuts start too soon.”

In closing, and as New Year’s Eve looms a few days away, Nick wishes a happy birthday to Sir Philip Anthony Hopkins who will turn 86 this December 31. Nick reflects on Hopkins life and career, including his working-class upbringing. Nick recalls an admirable line Hopkins said about his father that speaks to Hopkins’ character, “Whenever I get a feeling that I may be special or different, I think of my father and I remember his hands – his hardened, broken hands." And if you haven’t seen Hopkins in The Elephant Man, add it to your watchlist this winter.