Home » Economics (Page 271)
Category Archives: Economics
Why The Next ECB Stimulus Plan May Fail
Why The Next ECB Stimulus Plan May Fail In June 2014 I wrote an article called Draghi’s Plan does not fix Europe. In that article, I explained that the structural challenges of the eurozone -high government spending, excessive tax wedge, lack of technology leadership and demographics- were not going to be solved by a round of […]
History Being Made: Negative Rates, Fake Markets, & The Imminent “Daily Liquidity” Crisis
History Being Made: Negative Rates, Fake Markets, & The Imminent “Daily Liquidity” Crisis Transformational Markets: History Being Made No-Bond World And The Risk Of A Daily Liquidity Crisis Rates hit new lows this month. Symbolically, the 50-year swap rate in Europe dived into negative territory. Bonds as an asset class are in extinction, a major […]
Save The World By First Saving Yourself
Save The World By First Saving Yourself We each have a role to play in how the world recovers from the coming crisis Ripped from today’s headlines: Negative Interest Rates Are Coming And They Are Downright Terrifying (Yahoo! Finance) Earth’s Lungs Are Burning: Amazon Rainforest Which Contributes 20% Of Planet’s Oxygen Is On Fire What’s […]
Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency
Why Mark Carney Thinks The Dollar Can No Longer Be The World’s Reserve Currency While Jerome Powell’s highly anticipated Jackson Hole speech was, in the words of Brean Capital’s Russ Certo “underwhelming and anti-climatic”, one couldn’t say the same for the shocking luncheon speech by Bank of England’s outgoing governor, Mark Carney, titled “The Growing […]
Corporate Debt Is At Risk Of A Flash Crash
Corporate Debt Is At Risk Of A Flash Crash The world is awash in debt. While some countries are more indebted than others, very few are in good shape. The entire world is roughly 225% leveraged to its economic output. Emerging markets are a bit less and advanced economies a little more. But regardless, everyone’s “real” […]
China Responds To Trump’s “Barbaric” Tariffs: Vows To Fight “Until The End” And Have “The Last Laugh”
China Responds To Trump’s “Barbaric” Tariffs: Vows To Fight “Until The End” And Have “The Last Laugh” After Friday’s blitz of reciprocal trade war escalations, which saw a furious Trump slam the two “enemies of the state”, Fed Chair Powell and China president Xi, following China’s widely expected tariff hike retaliation and Powell’s uneventful Jackson […]
Krugman and the Goldbugs
Krugman and the Goldbugs The announcement that President Trump would nominate Judy Shelton, a long-time advocate of the gold standard, for a seat on the Federal Reserve’s Board of Governors got Paul Krugman thinking: why do some economic commentators become goldbugs? Krugman offers a rather cynical view. It is difficult “to build a successful career as […]
How Negative Interest Rates Screw Up the Economy
How Negative Interest Rates Screw Up the Economy Now they’re clamoring for this NIRP absurdity in the US. How will this end? Now there is talk everywhere that the United States too will descend into negative interest rates. And there are people on Wall Street and in the media that are hyping this absurd condition […]
In Unprecedented, Shocking Proposal, BOE’s Mark Carney Urges Replacing Dollar With Libra-Like Reserve Currency
In Unprecedented, Shocking Proposal, BOE’s Mark Carney Urges Replacing Dollar With Libra-Like Reserve Currency After Jerome Powell’s neutral-to-slightly-dovish-but-mostly-boring speech on Friday morning, investors could be forgiven for suspecting that this year’s Fed-sponsored gathering in Jackson Hole might be disappointingly dull (especially with all that’s going on in Trump’s twitter feed, the escalating trade war and escalating geopolitical […]
The Real Reasons Why The Media Is Suddenly Admitting To The Recession Threat
The Real Reasons Why The Media Is Suddenly Admitting To The Recession Threat One thing that is important to understand about the mainstream media is that they do tell the truth on occasion. However, the truths they admit to are almost always wrapped in lies or told to the public far too late to make […]
Debunking ‘Lower Oil Supply Will Raise Prices’
Debunking ‘Lower Oil Supply Will Raise Prices’ We often hear the statement, “When oil supply is lower, oil prices will rise because of scarcity.” Now, we are getting to see firsthand whether oil prices really do rise, as oil supplies become more scarce. Figure 1 shows that world oil supply hit a peak in November 2018 […]
There Is No Normal
There Is No Normal The wheel of time rolls forward, never retracing its path, but because it is a wheel, and we are riding in it, a persistent illusion persuades us that the landscape is recognizably the same, and that our doings within the regular turning of the seasons seem comfortably normal. There is no […]
The Ice Age Arrives: Average Sovereign Yield Outside The US Turns Negative For The First Time Ever
The Ice Age Arrives: Average Sovereign Yield Outside The US Turns Negative For The First Time Ever Last Friday afternoon, when what few traders were not on vacation were planning the venue of their evening alcohol consumption, we showed a remarkable analysis by Bank of America, which found that yields on the $27.8 trillion non-USD global investment grade bond […]
Mr. President, This Is How To Get The Fed To Launch Quantitative Easing
Mr. President, This Is How To Get The Fed To Launch Quantitative Easing Yesterday, after countless demands that the Fed cut interest rates, Trump finally made his first, long anticipated formal demand that the Fed should pursue “some quantitative easing“: ✔ · Aug 19, 2019 Our Economy is very strong, despite the horrendous lack of vision by […]
Are Recessions Inevitable?
Are Recessions Inevitable? Stocks fell last week following news that the yield curve on Treasury notes had inverted. This means that a short-term Treasury note was paying higher interest rates than long-term Treasury note. An inverted yield curve is widely seen as a sign of an impending recession. Some economic commentators reacted to the inverted […]
