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Tag Archives: monetary policy
Can Money Pumping Stimulate Economic Growth?
CAN MONEY PUMPING STIMULATE ECONOMIC GROWTH? According to most economic experts when an economy falls into a recession the central bank can pull it out of the slump by means of money pumping. This way of thinking implies that money pumping can somehow grow the economy. Indeed US historical evidence supposedly does show that easy […]
DiMartino Booth: It Won’t Take Much More For The Fed To Break The Markets
DiMartino Booth: It Won’t Take Much More For The Fed To Break The Markets Via Financial Sense, The following is a summary of our recent FS Insider podcast, “Danielle DiMartino Booth: Problems at the Fed, More Volatility for the Markets.” Danielle DiMartino Booth, founder of Money Strong and author of Fed Up: An Insider’s Take on Why the Federal Reserve Is […]
Trump and the Federal Reserve
Trump and the Federal Reserve Many of us would rather not think about the possibility of President Trump getting reelected, but there is little doubt that he is thinking about it. If Trump is serious about winning reelection, he may want to reconsider the sort of people he is appointing to the Federal Reserve. Virtually all political […]
How Much Longer Can We Get Away With It?
How Much Longer Can We Get Away With It? Alas, fakery isn’t actually a solution to fiscal/financial crisis.. This chart of “debt securities and loans”–i.e. total debt in the U.S. economy–is also a chart of the creation and distribution of new money, as the issuance of new debt is the mechanism in our financial system for […]
Interbank Rates Starting to Rise – Monetary Crisis is Beginning
Interbank Rates Starting to Rise – Monetary Crisis is Beginning Extremely reliable sources from Behind the Curtain in Europe are becoming deeply concerned that Draghi at the ECB has created a monumental economic disaster he is just praying to holding off until he leaves next year. Interest rates are already starting to rise significantly in […]
What is Wrong With the Popular Definition of Inflation?
WHAT IS WRONG WITH THE POPULAR DEFINITION OF INFLATION? According to Mises, Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. But people today use the term `inflation’ to refer to […]
$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart
$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart Back in late 2016, we showed the unprecedented domination of capital markets by central banks using a chart from Citi, which had put together a fascinating slideshow asking simply “Where is the utility in marginal QE” and specifically pointing out […]
In this Era of Inflated Asset Prices, Can the Fed Raise Rates without Causing Financial Mayhem?
In this Era of Inflated Asset Prices, Can the Fed Raise Rates without Causing Financial Mayhem? Wolf Richter on the Keiser Report. The Fed is trying to accomplish a soft landing — hence the extraordinarily slow rate hikes — but our history with soft landings is very spotty, and there has never been more debt than now: Investors […]
The Fed Must Have Inflation. Failure Is Not an Option
The Fed Must Have Inflation. Failure Is Not an Option The Fed says incessantly that “price stability” is part of their dual mandate and they are committed to maintaining the purchasing power of the dollar. But the Fed has a funny definition of price stability. Common sense says price stability should be zero inflation and […]
Bank Of Canada Holds Rates As Expected, Warns Trade “Growing Source Of Uncertainty”
Bank Of Canada Holds Rates As Expected, Warns Trade “Growing Source Of Uncertainty” Amid uncertainty around NAFTA (and Trump tariffs), and slumping economic data, The Bank of Canada was expected to ‘hold’ and endorse the two rate-hikes priced into the curve (notably less hawkish than the growing belief in The Fed’s four-hikes), and that is […]
Are Subprime Debt Slaves, a Leading Indicator, Worrying the Fed?
Are Subprime Debt Slaves, a Leading Indicator, Worrying the Fed? Credit problems always appear first at the margins. The new Fed remains a somewhat unknown quantity: There are still four vacancies on the Fed’s seven-member Board of Governors that forms the core of the policy-making FOMC. The new Chairman, Jerome Powell, has already shown in […]
Housing Collapse Coming Right Up
Housing Collapse Coming Right Up Mortgage rates are high and rising. Refinancing opportunities are nonexistent; home affordability has collapsed. The latest Black Knight Mortgage Monitor is worth a very close look. Here’s what the report says about the feature chart. Recent rate jumps coupled with climbing home prices have increased the cost to purchase the […]
Never Mind Volatility: Systemic Risk Is Rising
Never Mind Volatility: Systemic Risk Is Rising So who’s holding the hot potato of systemic risk now? Everyone. One of the greatest con jobs of the past 9 years is the status quo’s equivalence of risk and volatility: risk = volatility: so if volatility is low, then risk is low. Wrong: volatility once reflected specific […]
Kuroda Shocks Markets Hinting At QE End; Nikkei, USDJPY Tumble
Kuroda Shocks Markets Hinting At QE End; Nikkei, USDJPY Tumble In addition to the suddenly escalating global trade war, overnight traders had one more thing to worry about: another central bank unwinding its QE program. This happened shortly after midnight ET, when BOJ Governor Kuroda unexpectedly announced that the Bank of Japan will start thinking […]
