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Tag Archives: central bank
The Fed Wrecked the World’s Most Important Market
The Fed Wrecked the World’s Most Important Market Do you wish to know where the economy is heading? The bond market holds the answer, say the veterans. The birds of the moment, the flighty birds, flock to the stock market. But the owls nest in the bond market. The owls are the wiseacres. The Federal Reserve’s […]
China’s Rapidly Expanding Credit Affects Global Markets
China’s Rapidly Expanding Credit Affects Global Markets We again are seeing how rapidly expanding credit in China is spilling over into the global market. In reaction to its economy being slammed by covid-19, China like many countries has unleashed several massive stimulus programs to start things moving. Unfortunately for the Chinese people, they have also […]
ECB v Fed
ECB v Fed QUESTION: Martin, You mentioned in a recent blog post that the ECB, unlike the FED, can go bankrupt. Can you explain further? Not sure where you get the time, energy and resources to research and write all that you do buy it is truly amazing. Regards, M ANSWER: The Federal Reserve does not need […]
China’s Central Bank Vows To Expand Total Credit By 30% Of GDP In 2020
China’s Central Bank Vows To Expand Total Credit By 30% Of GDP In 2020 One of the curiosities about the current global financial crisis is that unlike the global financial crisis of 2008 when a massive credit injection by China sparked a generous reflationary wave around the world which pulled it out of a deflationary […]
No to the ECB madness
No to the ECB madness The latest ruling of the Federal Constitutional Court is a drop of bitterness in the idyll of the ECB’s excessive money printing. What Super Mario (Draghi) did and what the IMF-imported Christine Lagarde mercilessly continues – 2.6 trillion euros (since 2015), invested in government, corporate and other securities to boost […]
Powell Needs To Immediately Address Negative Rates Or He Will Lose Control
Powell Needs To Immediately Address Negative Rates Or He Will Lose Control Today was a historic day, not for the latest algo-driven meltup in stocks, but because for the first time ever, fed fund futures priced in negative rates, first in January 2021 and shortly after, as recently as November 2020. In response to the […]
They’re All High on Fed Fairy Dust
They’re All High on Fed Fairy Dust Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus. They’re all high on Federal Reserve fairy dust. US GDP contracted by 4.8% in the first quarter. It was the […]
Worse Than 2008: We Are Being Warned That The Coronavirus Shutdown “Could Collapse The Mortgage Market”
Worse Than 2008: We Are Being Warned That The Coronavirus Shutdown “Could Collapse The Mortgage Market” The cascading failures that have been set into motion by this “coronavirus shutdown” are going to make the financial crisis of 2008 look like a Sunday picnic. As you will see below, it is being estimated that unemployment in […]
Fed’s Balance Sheet Hits $6 Trillion: Up $1.6 Trillion In 3 Weeks
Fed’s Balance Sheet Hits $6 Trillion: Up $1.6 Trillion In 3 Weeks “We’re going to need a bigger chart.” That’s all one can say when seeing what happened to the Fed’s balance sheet in the past week. According to the Fed’s latest weekly H.4.1 (i.e., balance sheet) update, as of April 1 the Fed’s balance […]
Pandemic-Related Unemployment and Shutdowns Are a Recipe for Social Unrest
Pandemic-Related Unemployment and Shutdowns Are a Recipe for Social Unrest That’s a huge concern as forecasters expect the U.S. unemployment rate in the months to come to surpass that seen during the depths of the Great Depression. Could the stalled economy we’ve inflicted on ourselves in our frantic efforts to battle the COVID-19 pandemic lead […]
BofA: We Are Witnessing The Biggest Asset Bubble Ever Created By A Central Bank
BofA: We Are Witnessing The Biggest Asset Bubble Ever Created By A Central Bank Back in March 2018, when commenting on what was then the 2nd longest central-bank induced bull market of all time (it is now the longest ever) Bank of America’s CIO Michael Hartnett pointed out that “bull market leadership has been in assets that […]
The Triumph of Madness
The Triumph of Madness Viewing the past through the lens of history is unfair to the participants. Missteps are too obvious. Failures are too abundant. Vanities are too absurd. The benefit of hindsight often renders the participants mere imbeciles on parade. Was George Armstrong Custer really just an arrogant Lieutenant Colonel who led his men […]
Corona Virus? The Chinese Central Bank Has a “Solution”
Corona Virus? The Chinese Central Bank Has a “Solution” In response to the economic paralysis brought about by the coronavirus, the Chinese central bank has pumped $243 billion into financial markets. On Monday February 3 2020, China’s equity market shed $393 billion of its value. Most experts are of the view that in order to counter the […]
The Bank of England’s Governor Fears a Liquidity Trap
The Bank of England’s Governor Fears a Liquidity Trap The global economy is heading towards a “liquidity trap” that could undermine central banks’ efforts to avoid a future recession according to Mark Carney, governor of the Bank of England. In a wide-ranging interview with the Financial Times (January 8, 2020), the outgoing governor warned that central banks […]
Is Lebanon’s central bank a Ponzi scheme ?
Is Lebanon’s central bank a Ponzi scheme ? The situation in Lebanon is deteriorating. Traffic lanes have all been reopened, but a rift has emerged between those who favour the free flow of traffic and the road blockers. The Free Patriotic Movement of President Michel Aoun, the Shiite Amal Movement of parliament speaker Nabih Berri […]
