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Tag Archives: monetary policy
Ex-BOJ Chief Regrets Not Hiking, Hated QE, Says Sub-1% Interest Rates Don’t Work
Ex-BOJ Chief Regrets Not Hiking, Hated QE, Says Sub-1% Interest Rates Don’t Work Things are going from bad to worse in Japan: 7 years after BOJ chief Kuroda launched QQE (subsequently with yield curve control) while monetizing tens of billions in ETFs, the central banks has failed to boost either Japan’s economy or its inflation, […]
Central Bankers Panic Over Exuberant Financial Market “Fragility”, Warn Risks Are “Underestimated”
Central Bankers Panic Over Exuberant Financial Market “Fragility”, Warn Risks Are “Underestimated” You know it’s bad when… even the central bankers are warning that the monster they’ve created is out of control. As stocks have exploded higher in the face of declining earnings… And collapsing macro-economic data… Policy makers from the world’s central banks are suddenly […]
The Lessons From Japan’s Monetary Experiment
The Lessons From Japan’s Monetary Experiment A recent article in the Financial Times, “Abenomics provides a lesson for the rich world“, mentioned that the experiment started by prime minister Shinzo Abe in the early 2010s should serve as an important warning for rich countries. Unfortunately, the article’s “lessons” were rather disappointing. These were mainly that the central bank can […]
Chinese Media Stunner: China Will Be The Next Country To Cut Rates To Zero
Chinese Media Stunner: China Will Be The Next Country To Cut Rates To Zero One week ago, we showed in one chart why the global economic recovery that so many expect is just a few months away, won’t happen: as the chart below shows, China’s credit intensity since 1994 has exploded. This means that before the Global Financial […]
Fear of “Reversal Rates” Sets in, Says the Fed
Fear of “Reversal Rates” Sets in, Says the Fed The fear that today’s negative or low interest rates render central banks helpless in face of the next economic crisis. There is now a new theory cropping up in Fed-speak and more generally in central-bank speak. It’s not actually a new theory. I have been saying […]
The Next Wave of Debt Monetization Will Also Be A Disaster
The Next Wave of Debt Monetization Will Also Be A Disaster According to the IMF (International Monetary Fund) and the IIF (Institute of International finance) global debt has soared to a new record high. The level of government debt around the world has ballooned since the financial crisis, reaching levels never seen before during peacetime. This has happened in […]
One Bank Finally Admits The Fed’s “NOT QE” Is Indeed QE… And Could Lead To Financial Collapse
One Bank Finally Admits The Fed’s “NOT QE” Is Indeed QE… And Could Lead To Financial Collapse After a month of constant verbal gymnastics (and diarrhea from financial pundit sycophants who can’t think creatively or originally and merely parrot their echo chamber in hopes of likes/retweets) by the Fed that the recent launch of $60 […]
Blain’s Morning Porridge – Nov 15th 2019
Blain’s Morning Porridge – Nov 15th 2019 “Liberty, equality, fraternity, or death; the last, much the easiest to bestow, O Guillotine!” As it’s a Friday I am contractually entitled to have a rant and whine about whatever I want to write about. Which, today, isn’t really the cut and thrust of markets. To be brutally […]
The Fed Is Losing Control Over Rates Again, This Time In The Other Direction
The Fed Is Losing Control Over Rates Again, This Time In The Other Direction Starting in late March, something unexpected happened: as the Effective Fed Funds rate drifted higher, it broke above the implicit upper bound on the interest rate corridor defined by the Interest on Excess Reserves. It was not meant to do this. This loss of […]
The Federal Reserve is a Barbarous Relic
The Federal Reserve is a Barbarous Relic The Sky is Falling The man from the good place. “As I was going up the stair, I met a man who wasn’t there. He wasn’t there again today, Oh how I wish he’d go away!” [PT] Ptolemy I Soter, in his history of the wars of Alexander the Great, […]
Peter Schiff: When Is the Market Going to Wake Up to this Con?
Peter Schiff: When Is the Market Going to Wake Up to this Con? As expected, the Federal Reserve cut interest rates another 25 basis points on Wednesday. The mainstream read the post FOMC meeting comments to be relatively hawkish, saying Powell and Company seemed to indicate that future rate cutting is on pause. Peter Schiff […]
Fed Cuts Interest Rate 3rd Time in 2019 With Hints of a Pause
Fed Cuts Interest Rate 3rd Time in 2019 With Hints of a Pause The FOMC committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. Following the third rate cut in 2019, the Federal Reserve issued this short FOMC Statement. Information received since the Federal Open Market Committee met […]
Fed Cuts Rates Again, But Drops “Act As Appropriate” Pledge Signaling It Is Done Cutting
Fed Cuts Rates Again, But Drops “Act As Appropriate” Pledge Signaling It Is Done Cutting While the assumption is that Fed officials (having passed on the opportunity to lean against dovish market expectations) would not shock the market and vote to keep rates unchanged (96% odds and Fed has never surprised at that level), that’s […]
BOJ To Start Lending ETF Shares To Prevent Market Freeze
BOJ To Start Lending ETF Shares To Prevent Market Freeze While most central banks are contemplating how to gently break it to the public that since they are out of ammo with interest rates at all time low, and $15 trillion in global sovereign debt is now yielding negative – a financial abortion which suggests […]
Weekly Commentary: Whatever It Takes to Never Give Up
Weekly Commentary: Whatever It Takes to Never Give Up Any central bank head that passes through an eight-year term without once raising rates has some explaining to do. To leave monetary policy extremely loose for such an extended period comes with major consequences (can we at least agree on that?). So, what went wrong? How […]
