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Tag Archives: central bank
Unsolicited Advice to Fed Chair Powell
Unsolicited Advice to Fed Chair Powell American businesses over the past decade have taken a most unsettling turn. According to research from the Securities Industry and Financial Markets Association, as of November 2018, non-financial corporate debt has grown to more than $9.1 trillion [ed note: this number refers to securitized debt and business loans, other corporate liabilities […]
The Fed’s Body Count
The Fed’s Body Count “The problem with the war (Vietnam), as it often is, are the metrics. It is a situation where if you can’t count what’s important, you make what you can count important. So, in this particular case what you could count was dead enemy bodies.” – James Willbanks, Army Advisor, General of […]
Interest Rates, Funny Money, and Economic Malaise
Interest Rates, Funny Money, and Economic Malaise Since the 2007–8 financial crisis, more and more economists have entertained the idea that there might be some connection between artificially low interest rates and business cycles. By “artificially low” I mean interest rates that are pushed below their natural levels by expansionary monetary policy. The relationship between monetary policy […]
The Federal Reserve’s Controlled Demolition Of The Economy Is Almost Complete The Federal Reserve is an often misunderstood entity, not only in the mainstream, but also in alternative economic circles. There is this ever pervasive fantasy on both sides of the divide that the central bank actually “cares” about forever protecting the US economy, or […]
On The Edge Of Collapse: Turkish Lira Plummets As Central Bank Burns Through A Third Of Reserves
On The Edge Of Collapse: Turkish Lira Plummets As Central Bank Burns Through A Third Of Reserves The Turkish lira resumed its plunge on Thursday following a sharp rebound on Tuesday when Turkish authorities unleashed an unprecedented assault on lira shorts, helping push the TRY briefly higher ahead of regional elections, after a disappointing reading […]
Our Flawed Monetary System & Why it is Doomed
Our Flawed Monetary System & Why it is Doomed QUESTION: You mentioned that Rome had no national debt and no central bank. Exactly how did it function for 1,000 years? JY ANSWER: In addition to not having a national debt or a central bank, Rome had no police force or agency charged with enforcing the law. There were […]
The Federal Reserve: A Failure of the Rule of Law
The Federal Reserve: A Failure of the Rule of Law “Money is power.” We’ve all heard this aphorism many times before. Too often it’s a lazy shorthand dismissal of the finding of mainstream economics, which show that the pursuit and possession of money often entails innocuous or even beneficial consequences for society. Dr. Johnson was […]
Super Mario Draghi’s Day of Reckoning Has Arrived
Super Mario Draghi’s Day of Reckoning Has Arrived “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” — MARIO DRAGHI JULY 26TH 2012 No quote better defines Mario Draghi’s seven-plus years as the President of the European Central Bank than that quote. […]
What Caused the Recession of 2019-2021?
What Caused the Recession of 2019-2021? The banquet of consequences is now being served, but the good seats have all been taken.As I discussed in We’re Overdue for a Sell-Everything/No-Fed-Rescue Recession, recessions have a proximate cause and a structural cause. The proximate cause is often a spike in energy costs (1973, 1990) or a financial crisis triggered […]
Italy’s Gold enters the Political Fray. But who really owns it?
Italy’s Gold enters the Political Fray. But who really owns it? Italy’s unpredictable political situation continues to throw up surprises with a controversial claim in national newspaper La Stampa this week that the country’s coalition government wants to sell part of Italy’s gold reserves to cover spending plans and to prevent the need to increase VAT in […]
Why the Fed, Nor Any Central Bank, Can Ever Truly “Normalize”
Why the Fed, Nor Any Central Bank, Can Ever Truly “Normalize” Last week, I highlighted that since ’00, when the Federal Reserve has ceased adding to its balance sheet or begun “normalizing” (via rolling off assets), equity markets have swooned (detailed HERE). A simple idea today…that the end of population growth (where it matters) has long been upon […]
Venezuela’s gold in limbo amid tug-of-war at the Bank of England
Venezuela’s gold in limbo amid tug-of-war at the Bank of England In early November news was placed into the British media (Reuters and The Times) revealing that the Bank of England in London, one of the world’s largest custodians of gold bars on behalf of other central banks, was refusing to allow the withdrawal and […]
Inflation Targeting Madness: Russia Raises Rates Again
Inflation Targeting Madness: Russia Raises Rates Again I continue to wonder who Bank of Russia President Elvira Nabuillina works for. Seriously. On Friday, in response to solid growth in Russian economic statistics over the past few months, Nabuillina again raised interest rates 0.25%. She still adheres to idiotic IMF-style ‘inflation targeting’ dogma. Price inflation in […]
For The First Time Ever, Bank Of Canada Buys Mortgage Bonds
For The First Time Ever, Bank Of Canada Buys Mortgage Bonds Three weeks ago we reported that, the Bank of Canada announced for the first time that in order to prop up the sliding Canadian housing market help increase the tradeable float of its benchmark securities, the central bank would start buying government-backed mortgage bonds, […]
The Trade War Distraction: Huawei And Linchpin Theory
The Trade War Distraction: Huawei And Linchpin Theory Since the beginning of this year, I have been warning that trade tariffs initiated by Donald Trump would develop into a full-blown trade war with China, and perhaps other nations, and that the timing of this trade war is rather suspicious. Suspicious how? Almost every instance of […]
