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Tag Archives: interest rates
The Fantasy of Central Bank “Growth” Is Finally Imploding
The Fantasy of Central Bank “Growth” Is Finally Imploding Having destroyed discipline, central banks have no way out of the corner they’ve painted us into. It was such a wonderful fantasy: just give a handful of bankers, financiers and corporations trillions of dollars at near-zero rates of interest, and this flood of credit and cash into […]
THE WOLF STREET REPORT: How Even “Low” Interest Rates Screw Up the Economy
THE WOLF STREET REPORT: How Even “Low” Interest Rates Screw Up the Economy Interest rates don’t have to be negative to make a mess in the era of “Secular Stagnation.” (11 minutes)
The Biggest Bubble in Modern Financial History
The Biggest Bubble in Modern Financial History QUESTION: You said before you were advising corporates to issue long-term bonds and lock in the low rates. Even the US Treasury seems to be following your advice and are looking at issuing 50 and 100-year bonds. Do you give governments the same advice? DK ANSWER: If asked, of course, […]
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 […]
Aussie Reserve Bank, Considering “Extreme Measures”, Admits “We’re Almost Out Of Ammo”
Aussie Reserve Bank, Considering “Extreme Measures”, Admits “We’re Almost Out Of Ammo” At least one reserve bank globally is starting to ponder the question that many central banks across the world will soon inevitably be asking: what happens if we cut to zero and the economy continues to falter? This has led Australia to start considering QE, […]
IMF Recommends “DEEP” Negative Interest Rates as the Next Tool
IMF Recommends “DEEP” Negative Interest Rates as the Next Tool The IMF has continued to assume that the zero-bound on interest rates can be a serious obstacle for fighting recessions on the part of the central banks. The IMF maintains that the zero-bound is not a law of nature; it is a policy choice. The latest in […]
This Is The Same Pattern The Fed Followed Before The Great Depression
This Is The Same Pattern The Fed Followed Before The Great Depression There is immense confusion surrounding July’s Federal Reserve meeting and the rather insane aftermath that has been spurred on in the trade war. The Fed’s latest rate decision of a mere .25 bps cut was seen as “disappointing”, this was then followed by […]
3 Central Bank Shocks Unleash Overnight Yield Crash, With Yuan On Verge Of Collapse
3 Central Bank Shocks Unleash Overnight Yield Crash, With Yuan On Verge Of Collapse There is just one way to describe the plunge in bond yields overnight and the events behind it: the global race to the currency bottom is rapidly accelerating in its final lap with a global deflationary Ice Age (take a bow Albert Edwards) waiting […]
Peter Schiff On Today’s Sell Off: The Fed Is “Lying”, Rates Are Going Back To 0%, Gold Is Going To $2,000
Peter Schiff On Today’s Sell Off: The Fed Is “Lying”, Rates Are Going Back To 0%, Gold Is Going To $2,000 On a day where it looks as though the Fed’s bullshit “magic potion” may finally be wearing off on the stock market, Peter Schiff joined Chris Irons on the Quoth the Raven Podcast to speak about today’s market […]
Nothing Is Guaranteed
Nothing Is Guaranteed There are no guarantees, no matter how monumental the hubris and confidence. The American lifestyle and economy depend on a vast number of implicit guarantees— systemic forms of entitlement that we implicitly feel are our birthright. Chief among these implicit entitlements is the Federal Reserve can always “save the day”: the Fed has the tools […]
The Real Reason US Central Bankers Cannot Raise Interest Rates for the Rest of 2019
The Real Reason US Central Bankers Cannot Raise Interest Rates for the Rest of 2019 The real reason why the US Central Bank cannot raise interest rates can traced back to eight simple words – their response to the 2008 global financial crisis. US Central Bankers reached a crossroad of responsibility versus socialism for the […]
If The Federal Reserve Cuts Interest Rates Now, It Will Be An Admission That A Recession Is Coming
If The Federal Reserve Cuts Interest Rates Now, It Will Be An Admission That A Recession Is Coming So there is a lot of buzz that the Federal Reserve is about to cut interest rates – and it might actually happen. We’ll see. But if it does happen, it will directly contradict the carefully crafted […]
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle The longer the signals in capital markets go haywire under the influence of “monetary stimulus,” the bigger is the cumulative economic cost. That is one big reason why this fourth Fed stimulus — in the present already-longest (but lowest-growth) of super-long […]
For The First Time In 6 Years, No Central Bank Is Hiking
For The First Time In 6 Years, No Central Bank Is Hiking The global central bank experiment with renormalization is officially over. After roughly half the world’s central banks hiked rates at least once in 2018, the major central banks have returned to easing mode, and as the chart below shows, for the first time […]
