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Tag Archives: monetary policy
The Liquidity Punch Bowl
THE LIQUIDITY PUNCH BOWL It is appropriate with the inauguration of this weekly column to look at the “Big Picture”. The biggest risk to world stock markets, and asset prices in general, in 2018 is that G7 central banks (led by the Federal Reserve) are finally attempting to normalise monetary policy nine years after the […]
Central Banks Put a Safety Net Under Financial Markets
Central Banks Put a Safety Net Under Financial Markets Most early business cycle indicators suggest that the global economy is pretty much roaring ahead. Production and employment are rising. Firms keep investing and show decent profits. International trade is expanding. Credit is easy to obtain. Stock prices keep moving up to ever higher levels. All […]
Will Monetary Policy Trigger Another Financial Crisis?
Getty Images Will Monetary Policy Trigger Another Financial Crisis? Sustained unconventional monetary policies in the years after the 2008 global financial crisis created the conditions for the second-longest bull market in history. But they also may have sown the seeds of the next financial crisis, which might take root as central banks continue to normalize […]
Trump & the Fed: US Shadow Bankers About to Deepen Control of US Economy
Trump & the Fed: US Shadow Bankers About to Deepen Control of US Economy What’s sometime referred to as ‘shadow bankers’ have been running the economy and drafting US domestic economic policy since Trump took office. ‘Shadow’ banks include such financial institutions as investment banks, private equity firms, hedge funds, insurance companies, finance companies, asset […]
‘Perfect storm’: Global financial system showing danger signs, says senior OECD economist
‘Perfect storm’: Global financial system showing danger signs, says senior OECD economist The world financial system is as dangerously stretched today as it was at the peak of the last bubble but this time the authorities are caught in a “policy trap” with few defences left, a veteran central banker has warned. Nine years of […]
Why the Next Downturn “Will Not Look Like 2008”
Why the Next Downturn “Will Not Look Like 2008” Nine years of scorched-earth monetary policies come home to roost. There are always cycles. The current cycle started at the bottom of the Great Recession and will last “until central banks put on the brakes,” said Ray Dalio, founder of Bridgewater Associates, in an interview with […]
Global Crisis Events: The Weird Keeps Getting Weirder
Global Crisis Events: The Weird Keeps Getting Weirder While the mainstream media and general public tend to assume that every new day is bringing us closer to a better future, many alternative analysts focus on the underlying weirdness of our world and all of the crisis factors that average people don’t want to think about. […]
Rate Squeeze in Vancouver & Toronto Housing Bubbles
Rate Squeeze in Vancouver & Toronto Housing Bubbles Variable-rate mortgages, the HELOC phenomenon, and new stress tests meet higher rates. The Bank of Canada raised interest rates another 25 basis points last week. It was the third time in the past six months. Rates have more than doubled in that time, going from 0.50% to […]
Fed Scared to Death of Causing Global Financial Crash – Nomi Prins
Fed Scared to Death of Causing Global Financial Crash – Nomi Prins Two time, best-selling author Nomi Prins says central bankers have no idea how to stop the easy money policies that they started after the financial meltdown of 2008. Prins explains, “So, when the Fed says they are going to remove assets from their […]
Central Banks: From Coordination to Competition
Central Banks: From Coordination to Competition This is one reason why I anticipate “unexpected” disruptions in the global economy in 2018. The mere mention of “central banks” will likely turn off many readers who understandably have little interest in convoluted policies and arcane mumbo-jumbo, but bear with me for a few paragraphs while I make […]
Are Inflationary Expectations the Heart of Inflation?
ARE INFLATIONARY EXPECTATIONS THE HEART OF INFLATION? For most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price of oil, individuals may form higher inflationary expectations that could set in motion spiraling price inflation, or so it is held. If somehow expectations […]
Drowning In The Money River
Photobank gallery/Shutterstock Drowning In The Money River Why the 99% of us are falling farther behind It’s a big club and you ain’t in it. ~ George Carlin If you suspect society is unfair, that there’s a different set of rules the rich live by, you’re right. I’ve had ample chance to witness first-hand evidence […]
Social Change Will Upend the Status Quo
Social Change Will Upend the Status Quo The nation is fragmenting because the Status Quo is failing the majority of the citizenry. The core narrative of the Status Quo is that nothing fundamental needs to be changed: all the problems can be solved with more “free money” (borrowed from the future at low rates of […]
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo Right at the front of the monetary welfare queue is the government of Italy. As the Eurozone economy continues to grow, pressure is rising on Europe’s biggest bond buyer, the ECB, to withdraw from the market, a process it has already begun. […]
