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Why Dollar Dominance Drops to Lowest Mark Since 2013
Why Dollar Dominance Drops to Lowest Mark Since 2013 According to the IMF, the U.S. dollar is known as the “Global Reserve Currency”. There are a number of reasons for this, but mainly because it’s backed by the U.S. economy. That economy is fraught with uncertainty at the moment. But that isn’t the only issue plaguing the U.S. […]
Interest Rates, Funny Money, and Economic Malaise
Interest Rates, Funny Money, and Economic Malaise Since the 2007–8 financial crisis, more and more economists have entertained the idea that there might be some connection between artificially low interest rates and business cycles. By “artificially low” I mean interest rates that are pushed below their natural levels by expansionary monetary policy. The relationship between monetary policy […]
David Rosenberg: Fed Will Embrace ‘Helicopter Money’ In The Next Few Years
David Rosenberg: Fed Will Embrace ‘Helicopter Money’ In The Next Few Years Jerome Powell has denounced MMT has “just wrong”, but many Wall Street luminaries have surprisingly communicated an openness to the proposal. Most recently Ray Dalio proposed a marriage of monetary and fiscal policy that sounded suspiciously similar to MMT. Bill Gross, once a vocal critic […]
Nevertheless, he persisted
Nevertheless, he persisted Today, the Nikkei Asian Review reports that Nomura Holdings, Inc. (8604 on the Tokyo Stock Exchange) expects to close over 30 of its 156 domestic retail branches, “previously considered a sacred cow by the group.” In addition, Nomura will eliminate roughly half of its 11 administrative departments and “revisit its policy of maintaining hubs […]
Market Commentary: Faux Statesmanship
Market Commentary: Faux Statesmanship April 5 – New York Times (Dealbook): “’It doesn’t take a genius’ to know capitalism needs fixing. Capitalism helped Ray Dalio build his investment empire. But in a lengthy LinkedIn post, the Bridgewater Associates founder says that it isn’t working anymore. Mr. Dalio writes that he has seen capitalism ‘evolve in […]
Utopian Vision
Utopian Vision There is nothing that a human mind can’t conceive. It can shoot for the stars or dive in the ocean which twinkles in the shadows of stars and ascend back with sparkling mind bearing uncanny ambition only to float contended. Today, we live in fear of losing wealth, we worry what economic […]
The Ultimate Pivot: Saudi Betrayal of the Petrodollar
The Ultimate Pivot: Saudi Betrayal of the Petrodollar Saudi Arabia has gone nuclear, threatening the petrodollar. Or has it? The report from Zerohedge via Reuters that Saudi Arabia is angry with the U.S. for considering a bill exposing OPEC to U.S. antitrust law is a trial balloon. The chances of the U.S. bill known as NOPEC coming […]
Kondratiev – Riding the Economic Wave
Kondratiev – Riding the Economic Wave LET’S escape Brexit and see what’s happening in the wider world. Most forecasters are gloomy about global economic prospects. According to Schroders, doyen of UK assets managers: “We forecast a more stagflationary environment in 2019 with global growth set to slow and inflation to rise”. The Davos World Economic […]
The Reasons Behind The Relentless Ideological Onslaught Against Free Markets
The Reasons Behind The Relentless Ideological Onslaught Against Free Markets I sometimes think that the free market concept is treated like The Hunchback of Notre-Dame’s Quasimodo in the long novel of global economic history. It is considered ugly and undesirable by most people who judge it at a mere glance without bothering to understand it. […]
As the Madness Turns
As the Madness Turns A Growing Gap The first quarter of 2019 is over and done. But before we say good riddance. Some reflection is in order. To this we offer two discrete metrics. Gross domestic product and government debt. US nominal GDP vs total federal debt (in millions of USD) – government debt has […]
New Canadian Bonds Are Backed By Junk Rated Retailers And Consumer Loans Charging 40% Interest
New Canadian Bonds Are Backed By Junk Rated Retailers And Consumer Loans Charging 40% Interest In a unique twist on the excesses of the last credit bubble, Canada’s bond market is now issuing bonds backed by increasingly riskier assets, but that hasn’t stopped investors from jumping at the chance to buy them – because why would […]
Time for a True Global Currency
Time for a True Global Currency The International Monetary Fund’s global reserve asset, the Special Drawing Right, is one of the most underused instruments of multilateral cooperation. Turning it into a true global currency would yield several benefits for the global economy and the international monetary system. NEW YORK – This year, the world commemorates […]
The Bank Of Japan Bought 5.6 Trillion Yen In Stocks Last Year
The Bank Of Japan Bought 5.6 Trillion Yen In Stocks Last Year There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final […]
The Japanification of the World
The Japanification of the World Zombification / Japanification is not success; it is only the last desperate defense of a failing, brittle status quo by doing more of what’s failed. A recent theme in the financial media is the Japanification of Europe.Japanification refers to a set of economic and financial conditions that have come to characterize Japan’s […]
BIS General Manager Outlines Vision for Central Bank Digital Currencies
BIS General Manager Outlines Vision for Central Bank Digital Currencies The behaviour of central bankers is rarely (if ever) given sustained coverage in the national press. Outside of prominent economic channels, developments from within institutions such as the International Monetary Fund and the Bank for International Settlements are seldom remarked upon. Instead, attention is restricted to […]
