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Tag Archives: central bank
The Fed Has Lost Its “Myth Magic”
The Fed Has Lost Its “Myth Magic” Myths Are Worth Wondering About Wondering is what we do, here at the Diary, especially wondering about myths. “Myths” are not necessarily untrue. They just can’t be known or proven in the way, say, that Archimedes could prove that the king’s crown was made of gold. Antiquity’s most famous […]
No More Twofers——Why The Vaunted “Clinton Prosperity” Of The 1990s Is A Risible Myth
No More Twofers——Why The Vaunted “Clinton Prosperity” Of The 1990s Is A Risible Myth That Hillary Clinton has—–unaccountably——stood by her man for 40 years is her particular foible. But now she wants 320 million Americans to stand by him, too, by electing her President so she can make Bill the nation’s economic czar: During a speech in […]
The Road to Canossa
THE ROAD TO CANOSSA That the artificial interest rates in evidence in our hugely distorted capital and money markets can be made negative in nominal as well as in real terms is, alas, the curse of the modern age. Though entirely at odds with natural order – as we have repeatedly tried to make plain […]
The ECB and John Law
The ECB and John Law Last week, the ECB extended its monetary madness, pushing deposit rates further into negative figures. It is extending quantitative easing from sovereign debt into non-financial investment grade bonds, while increasing the pace of acquisition to €80bn per month. The ECB also promised to pay the banks to take credit from […]
The Fed And The Oil Markets On Unsustainable Path As Election Looms
The Fed And The Oil Markets On Unsustainable Path As Election Looms Oil prices have increased 50 percent since the lows exhibited earlier this year, a rise that is largely linked to the positive market reaction to the OPEC output freeze. That comes even as for all intents and purposes OPEC has nearly reached its […]
The ECB and John Law
THE ECB AND JOHN LAW Last week, the ECB extended its monetary madness, pushing deposit rates yet more negative. It is extending quantitative easing from sovereign debt into non-financial investment grade bonds, while increasing the pace of acquisition to €80bn per month. The ECB also promised to pay the banks to take credit from it […]
Impaled On Its Own Petard——The Fed’s Folly Festers Further
Impaled On Its Own Petard——The Fed’s Folly Festers Further Listening to even a small portion of Simple Janet’s incoherent babble makes very clear that the nation’s central bank is well and truly impaled on its own petard. According to the dictionary, the latter term refers to….. …….. a small bomb used for blowing up gates and walls when breaching […]
Mario Draghi Got Lost In A Rabbit Hole
Mario Draghi Got Lost In A Rabbit Hole Arthur Rackham “Why, Mary Ann, what are you doing out here?”1907 I’ll try and keep this gracefully short: Mario Draghi ‘unleashed’ a bazooka full of desperate tools on the financial markets yesterday and they blew up in his face faster than you could say blowback or backdraft […]
Do Any of the Current Rallies Pass “The Sniff Test”? No.
Do Any of the Current Rallies Pass “The Sniff Test”? No. But you can’t tame the monster of speculative, legalized looting and financialization. Everything from iron ore to copper to the Baltic Dry Index to stocks to bat guano is rallying. The problem is not a single rally passes “the sniff test:” is the rally the […]
Donald Trump Is Right – Here Are 100 Reasons Why We Need To Audit The Federal Reserve
Donald Trump Is Right – Here Are 100 Reasons Why We Need To Audit The Federal Reserve When one of our major politicians gets something exactly right, we should applaud them for it. In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct. Most Americans don’t realize this, but the […]
Citi On Why Negative Rates Are Like Potato Chips: “No One Can Have Just One”
Citi On Why Negative Rates Are Like Potato Chips: “No One Can Have Just One” Now that Japan has let the negative rates genie out of the bottle, or as DB put it, ‘opened the Pandora’s Box‘ and in the process unleashed the latest global “silent bank run” and capital flight, prepare to hear a […]
More Central Bank Trouble in Canada
More Central Bank Trouble in Canada Yesterday, the Governor of the Bank of Canada Stephen Poloz surprised many by not lowering the target for the overnight rate to 0.25% from 0.50%. The central bank cut this rate twice last year in an attempt to stimulate the economy. During the past nine months the TSX index […]
Ruble Plunges 26% in 90 days, 6% in Two Days, Hits New Low, Government Says to Heck with it
Ruble Plunges 26% in 90 days, 6% in Two Days, Hits New Low, Government Says to Heck with it Where’s the shock and awe? The ruble plunged 3.8% on Wednesday and another 2.8 on Thursday to a new all-time low of 83.85 to the dollar, at 5:30 PM Moscow time, blowing through the previous catastrophic […]
Bank of Canada faces key rate decision Wednesday: To cut or not?
Bank of Canada faces key rate decision Wednesday: To cut or not? Economists have conflicting views on whether the central bank should cut its rate or hold steady Bank of Canada governor Stephen Poloz is set to reveal the bank’s latest decision on interest rates on Wednesday, and many economists say a rate cut could […]
Amazon And The Fantastic FANGs——A Bubblicious Breakfast Of Unicorns And Slippery Accounting
Amazon And The Fantastic FANGs——A Bubblicious Breakfast Of Unicorns And Slippery Accounting At year end we posted a rant about the “Brobdingnagian” bubble embedded in Amazon’s market cap. On December 29th it was valued at $325 billion and had gained $180 billion or 55% of that towering figure in just the previous 12 months. Self-evidently this was a flashing red warning signal that the end of the […]
