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Tag Archives: central banks
The Massive Increase Of Central Bank Paper Assets Warns Of Financial Danger Ahead
The Massive Increase Of Central Bank Paper Assets Warns Of Financial Danger Ahead By purchasing increasingly worthless paper assets, we can thank the central banks for propping up the global economy for the past decade. Since the 2008 financial crisis, the top central bank’s have acquired $13 trillion worth of assets on their balance sheets. […]
ECB Inflationists are Crippling Europe
ECB Inflationists are Crippling Europe Last week, the ECB announced the reintroduction of targeted long-term refinancing operations for the third time. TLTRO-III is scheduled to start from next September. The idea is to make yet more money available for the banks at attractive rates on condition they increase their lending to non-financial entities. The policy […]
Being and Time (And Central Banks)
BEING AND TIME (AND CENTRAL BANKS) People value present goods more highly than future goods. For instance, an apple available today is considered more valuable than the same apple available in, say, one month. This is expressive of time preference — which is an undeniable fact, a category of human action. The sentence “Humans act” is a […]
De-Dollarization Accelerates: Central Banks Dump Dollar In Q4, Buy Yuan
De-Dollarization Accelerates: Central Banks Dump Dollar In Q4, Buy Yuan The dollar’s share of global central-bank reserves slumped to the lowest level since 2013 while holdings of the Chinese yuan rose for the fifth quarter in the past six, IMF data showed Friday. The U.S. currency accounted for 61.7% of global allocated foreign-exchange reserves in […]
Over $10 Trillion In Debt Now Has A Negative Yield
Over $10 Trillion In Debt Now Has A Negative Yield NIRP is back. On Friday, when Germany reported disastrous mfg and service PMI prints, the 10Y German Bund finally threw in the towel, with the yield sliding back under zero for the first time in three years. When that happened, and when the 3M-10Y yield […]
Extrapolating The Recent Past Can Be Hazardous To Your Wealth
Extrapolating The Recent Past Can Be Hazardous To Your Wealth “Those who cannot remember the past are condemned to repeat it,” remarked George Santayana over 100 years ago. These words, as strung together in this sequence, certainly sound good. But how to render them to actionable advice is less certain. George Santayana – purveyor of […]
Politics Has Failed, Now Central Banks Are Failing
Politics Has Failed, Now Central Banks Are Failing With each passing day, we get closer to the shift in the tide that will sweep away this self-serving delusion of the ruling elites like a crumbling sand castle. Those living in revolutionary times are rarely aware of the tumult ahead: in 1766, a mere decade before the […]
Don’t Be So Negative
DON’T BE SO NEGATIVE “FED’S WILLIAMS SAYS IN A DOWNTURN WE COULD CONSIDER QUANTITATIVE EASING, NEGATIVE RATES.” Tweet by Reuters’ Jennifer Ablan, reporting on a speech by John Williams of the Federal Reserve Bank of New York at the Economic Club of New York, 6 March 2019. “Because NIRP worked so well in Europe and […]
Weekly Commentary: No One Knows How Monetary Policy Works
Weekly Commentary: No One Knows How Monetary Policy Works My interest was piqued by a Friday Bloomberg article (Ben Holland), “The Era of Cheap Money Shows No One Knows How Monetary Policy Works.” “Monetary policy is supposed to work like this: cut interest rates, and you’ll encourage businesses and households to borrow, invest and spend. […]
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 […]
Federal Reserve Chairman Appears on 60 Minutes – Why Now?
Federal Reserve Chairman Appears on 60 Minutes – Why Now? One of the most famous, and prescient, financial cartoons in American history is the above depiction of the Federal Reserve Bank as a giant octopus that would come to parasitically suck the life out of all U.S. institutions as well as free markets. The image is […]
Central Banks Cave, Usher In The Crack-Up Boom
Central Banks Cave, Usher In The Crack-Up Boom This was going to be the year when the other big central banks joined the Fed in “normalizing” interest rates and reversing the past decade’s QE experiment. Instead, the other central banks blinked and went back to aggressive ease, and the Fed is following them. This is a […]
The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves
The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves The trend is accelerating, just as I predicted it would. Countries all over the globe are growing anxious, as the geopolitical atmosphere of the world continues to heat up, threatening to hit a boiling point. Central bankers and government officials who see the […]
A Week in the Life of a Topsy-Turvy Wildly Whirling World
A Week in the Life of a Topsy-Turvy Wildly Whirling World Let’s review this past devilishly whacky week to see if we can divine the way the world is turning and why the markets are churning. It was 2019’s worst week in stocks and, well, just about everything economic all across this crazily spinning planet. […]
Poetic Justice For The Aristocracy
Poetic Justice For The Aristocracy Two points about today’s political economy – and then a prediction involving Illinois: Point One: What’s coming is poetic justice for the aristocracy. The wave of populism/socialism/proto-fascism that’s sweeping the US and Europe is a direct result of the breathtaking hubris of a ruling class that didn’t know when to quit […]
