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Tag Archives: monetary policy
Living Dangerously
Living Dangerously Regular readers of Goldmoney’s Insights should be aware by now that the cycle of business activity is fuelled by monetary policy, and that the periodic booms and slumps experienced since monetary policy has been used in an attempt to manage economic outcomes are the result of monetary policy itself. The link between interest […]
Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost?
Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost? Fed, Stratospheric dangers, US corporate leverage and the greater competition to manage funds. “Of all extinct life-forms, dinosaurs are the most popular. Why that should be is not clear… ” All eyes on the Fed today. They will hike by 25bp […]
The Eurozone’s Coming Debt Crisis
The Eurozone’s Coming Debt Crisis The European Central bank has signaled the end of its asset purchase program and a possible rate hike before 2019. After more than 2 trillion euro of purchases and zero interest rate policy, it is overdue. The massive quantitative easing program has generated very significant imbalances and the risks outweigh […]
Supply v Demand-Side Economic & What is Never Discussed
Supply v Demand-Side Economic & What is Never Discussed COMMENT: Usury, first the Fed starves we savers for return for 18 years with their zero percent interest rates and gave us two giant stock market crashes in that intervening period. The lack of return caused us to cannibalize our savings and trillions of savings lost thru […]
ECB & Bonds – People Believe What They Want to Believe
ECB & Bonds – People Believe What They Want to Believe QUESTION: the ECB is arguing that given the low free float of EU bonds (especially German), bonds not owned by the ECB or other central banks, the impact of an end to APP purchases will be nowhere comparable to the tapering sell-off in the US […]
Nomi Prins: Central Bank-Inspired “Major Credit Squeeze” Will Trigger Next Crisis
Nomi Prins: Central Bank-Inspired “Major Credit Squeeze” Will Trigger Next Crisis For all the talk about tapering (in both the US and Europe), the Federal Reserve has actually done remarkably little to reduce its balance sheet. And in an interview with Macrovoices Erik Townsend, former Wall Street executive Nomi Prins expands upon some of the […]
Higher Oil Prices Might Not Destroy Demand Growth
Higher Oil Prices Might Not Destroy Demand Growth The recent jump in oil prices to $80 per barrel raised a lot of questions about whether or not the heady demand growth projections for this year would hold up. In fact, signs of strain quickly popped up in disparate parts of the world. But as governments […]
Lira Soars After Turkish Central Bank Unleashes Massive, “Whatever It Takes” Rate Hike
Lira Soars After Turkish Central Bank Unleashes Massive, “Whatever It Takes” Rate Hike Ahead of today’s Turkish Central bank decision, analysts were adamant that if Turkey truly wants to ward off currency bears, it would have to deliver a “shock and awe” rate hike, greater than the whisper consensus call for a 100bps, especially since […]
“EM FX Never Lies” – BofA Warns As Brazilian Real Is Routed
“EM FX Never Lies” – BofA Warns As Brazilian Real Is Routed Mohamed El-Erian warned overnight that Brazilian policy makers are “in quite a tricky position — and there’s little room for error,” and judging buy this morning’s rout in the real, he is dead right. Crippling nationwide trucker strikes, which prompted the resignation of […]
The Myth That Central Banks Assure Economic Stability
THE MYTH THAT CENTRAL BANKS ASSURE ECONOMIC STABILITY The world has been plagued with periodic bouts of the economic rollercoaster of booms and busts, inflations and recessions, especially during the last one hundred years. The main culprits responsible for these destabilizing and disruptive episodes have been governments and their central banks. They have monopolized the […]
Why India’s Surprise Rate Hike May Lead To The Next Emerging Market Crisis
Why India’s Surprise Rate Hike May Lead To The Next Emerging Market Crisis Following RBI governor Urjit Patel’s Op-ed earlier this week, in which he lamented the growing dollar shortage as a result of the Fed’s ongoing tightening, it is perhaps not surprising that this morning India became the latest central bank to “surprise” markets […]
The Pension Crisis Will Break Up the EU
The Pension Crisis Will Break Up the EU The German public broadcast agency ARD is proposing structural changes. Due to the low-interest rates, the ECB has placed the agency in hard times with its pensions. Karola Wille, the director, has called for structural reform to reduce costs. The proposal centers on technological change to increase efficiency […]
Canadian Banks See Mortgage Growth Stall As Interest Rates Rise
Canadian Banks See Mortgage Growth Stall As Interest Rates Rise As anybody who was around for the housing collapse will remember, nothing bursts a bubble in home prices faster than rising mortgage rates. And while US home prices have surpassed their pre-crisis peak, Canadian home prices have risen much more quickly than home prices in […]
Debt Deflation Italian Style
Debt Deflation Italian Style New York – This week The IRA will be at the MBA Secondary Market Conference & Expo, as always held at the Marriott Marquis in Times Square. The 8th floor reception and bar is where folks generally hang out. Attendees should not miss the panel on mortgage servicing rights at 3:00 […]
This Federal Policy Enabled the Fracking Industry’s $280 Billion Loss
This Federal Policy Enabled the Fracking Industry’s $280 Billion Loss Most people probably aren’t familiar with the acronym ZIRP. It stands for zero interest rate policy and is the policy that unintentionally created the American fracking bubble — just one of its many consequences. And while most people may not know much (if anything) about ZIRP […]
