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Tag Archives: monetary stimulus
Why the New Economics Just Boils Down to Printing More Money
WHY THE NEW ECONOMICS JUST BOILS DOWN TO PRINTING MORE MONEY [Editor’s Note: this article is adapted from a 2003 essay in the Quarterly Journal of Austrian Economics entitled “New Keynesian Monetary Views: A Comment.” As economists abandon theory in favor of makeshift plans to flood the economy with stimulus, Hülsmann here provides some helpful reminders of […]
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 […]
Japan Is Again Forced To Stimulate Its Troubled Economy
Japan Is Again Forced To Stimulate Its Troubled Economy Japan faces a wall of debt that can only be addressed by printing more money and debasing its currency. This means they will be paying off their debt with worthless yen where possible and in many cases defaulting on the promises they have made. Japan currently has […]
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 […]
Blain’s Morning Porridge – July 11 2019 – Man on the Moon Day!
Blain’s Morning Porridge – July 11 2019 – Man on the Moon Day! “The Sky is not the limit – there are footprints on the Moon.” So many choices for this morning’s quote. The classic Armstrong “One Step” was too obvious. I did think about “To infinity and beyond”. But the one I chose is […]
Why stimulus can’t fix our energy problems
Why stimulus can’t fix our energy problems Economists tell us that within the economy there is a lot of substitutability, and they are correct. However, there are a couple of not-so-minor details that they overlook: There is no substitute for energy. It is possible to harness energy from another source, or to make a particular object […]
China’s Looming Liquidity Shortage (Or Why Endless Stimulus Isn’t Working)
China’s Looming Liquidity Shortage (Or Why Endless Stimulus Isn’t Working) Chinese Premier Li promised yet more stimulus measures overnight from tax cuts to focused rate reductions (but, he admitted, not blanket liquidity provision). But, after over 60 different ‘stimulus’ measures in the last few months and last night’s promises, nothing seems to be working as China’s economic data continues to […]
Rabo: The World Is Banking On China (But Japan Points To Our Future)
Rabo: The World Is Banking On China (But Japan Points To Our Future) Market comments There is a saying in the market that if you want to see the future of monetary policy, you just have to look at Japan. Well, as expected, BoJ Governor Kuroda and his team decided to keep policy unchanged, despite a […]
China Premier Vows No Massive Stimulus As Beijing Launches Massive Stimulus
China Premier Vows No Massive Stimulus As Beijing Launches Massive Stimulus When it comes to China, the past decade revealed two things beyond a shadow of a doubt: i) all of the country’s economic data is utterly meaningless as it is entirely fabricated (in this measure it is not much different from other developed nations), […]
ECB Warns Slowdown Isn’t Temporary: Draghi Announces Bold Stimulus Plan
ECB Warns Slowdown Isn’t Temporary: Draghi Announces Bold Stimulus Plan Mario Draghi surprised even the doves with his bold new stimulus plan. It won’t help one iota. The Wall Street Journal reports ECB Reverses Course With New Stimulus Measures. The European Central Bank made a major policy reversal Thursday, unveiling plans for fresh measures to stimulate […]
Volatility Holds the Key to Markets in 2019
Volatility Holds the Key to Markets in 2019 Over the last two weeks, after making good on the four-rate interest hike of 2018, Fed Chairman, Jerome Powell, became more dovish to start 2019. His change in tone is worth considering because of his historical stance on reducing the amount of artificial stimulus coming from the […]
From Economic Crisis to World War III
Andrew Lichtenstein/Corbis via Getty Images From Economic Crisis to World War III The response to the 2008 economic crisis has relied far too much on monetary stimulus, in the form of quantitative easing and near-zero (or even negative) interest rates, and included far too little structural reform. This means that the next crisis could come […]
China’s Senior Leadership Prepares For Economic Collision In Spring 2019
China’s Senior Leadership Prepares For Economic Collision In Spring 2019 China’s senior leadership has just signaled for more stimulus, as its economy and stock market prepares for a possible economic collision in early 2019 from the trade war with the United States. The Communist Party’s Politburo, a group of 25 people who oversee the Communist […]
China Vows More Stimulus With Economy On Verge Of Contraction
China Vows More Stimulus With Economy On Verge Of Contraction Overnight, China revealed the latest confirmation that its economy is slowing more conventional wisdom realizes when the National Bureau of Statistics reported that the manufacturing PMI fell to 50.2 in October – on the verge of a sub-50 contraction – down from 50.8 in September […]
