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Tag Archives: inflation
Are Negative Rates Fueling Deflation?
Are Negative Rates Fueling Deflation? Those in power never understand markets. They are very myopic in their view of the world. The assumption that lowering interest rates will “stimulate” the economy has NEVER worked, not even once. Nevertheless, they assume they can manipulate society in the Marxist-Keynesian ideal world, but what if they are wrong? By lowering […]
Technically Speaking: The Real Value Of Cash
Technically Speaking: The Real Value Of Cash With the “inmates running the asylum” during a holiday-shortened trading week, the upward bias to the market is set to continue. However, as I addressed last week: “As we progress through the last two months of the year, historical tendencies suggest a bias to the upside. This is particularly the case given […]
Weekly Commentary: Monetary Fiasco
Weekly Commentary: Monetary Fiasco All great monetary fiascos are forged upon a foundation of misperceptions and flawed premises. There’s always an underlying disturbance in money and Credit masked by supposed new understandings, technologies, capabilities and superior financial apparatus. During the nineties “New Paradigm” period, exciting new technologies and “globalization” were seen unleashing a productivity and […]
The Fed’s Dollar Distraction
The Fed’s Dollar Distraction In its September policy statement, the US Federal Reserve took into consideration – in a major way – the impact of global economic developments on the United States, and thus on US monetary policy. Indeed, the Fed decided to delay raising interest rates partly because US policymakers expect dollar appreciation, by lowering […]
Weekly Commentary: Risk Off?
Weekly Commentary: Risk Off? The “Granddaddy of All Bubbles” thesis rests upon the view that the world is in the midst of the precarious grand finale of a multi-decade global Credit and financial Bubble. When a Bubble bursts, system reflation requires an even larger fresh new Bubble. This has repeatedly been the case going back […]
As The World Rolls Over
As The World Rolls Over Brutal news is pouring in from pretty much everywhere. US retail sales are flat and wholesale prices are falling. Big retail chains are missing on earnings and seeing their shares plunge. Chinese nonperforming loans are soaring while imports, car sales and steel production are way down. Oil is flirting with […]
The Eurozone’s Minsky Conundrum
The Eurozone’s Minsky Conundrum BRUSSELS – Stubbornly low inflation has the European Central Bank worried. But its response – essentially just more quantitative easing – could backfire, exacerbating imbalances and generating serious financial instability. As it stands, the headline consumer price index in the eurozone hovers around zero, and even core inflation remains below 1% […]
The Next Level of John Law Type Central Planning Madness
The Next Level of John Law Type Central Planning Madness Cries for Going Totally Crazy are Intensifying What are the basic requirements for becoming the chief economist of the IMF? Judging from what we have seen so far, the person concerned has to be a died-in-the-wool statist and fully agree with the (neo-) Keynesian faith, […]
A Stunning Admission From A BOE Central Banker: This Is What The Coming “Helicopter Money” Will Look Like
A Stunning Admission From A BOE Central Banker: This Is What The Coming “Helicopter Money” Will Look Like Back in early 2009, just around the time the Fed announced it would unleash QE1, we warned that any attempt to reflate the debt (a pathway which ultimately leads to hyperinflation as monetary paradrops are the only […]
The Fed’s 2% Inflation Fairytale—–Who Made It Up And What Does It Mean?
The Fed’s 2% Inflation Fairytale—–Who Made It Up And What Does It Mean? Once upon a time, not too long ago, central bank wizards began telling a fairytale that economies need inflation. But not just any inflation. In their Goldilocks make-believe world, the not too hot, not too cold, just right dose of two percent […]
What’s Next: Deflation, Inflation, or Hyperinflation?
What’s Next: Deflation, Inflation, or Hyperinflation? Divided Opinions POITOU, France – Last week, young colleagues at Bonner & Partners HQ in Delray Beach, Florida, put us on the spot. “What do we stand for as a publishing business?” they asked. “Who are we? How are we different from anyone else? What do we think that […]
Lost in Extrapolation
Lost in Extrapolation Phillips Curve Fail In the late 1970s the impossible happened. Inflation and unemployment simultaneously went vertical. The leading economists of the day were flummoxed. Larry Summers favors us with his “eternal stagnation” shrug. The man is a sheer inexhaustible fount of truly atrocious ideas. As we have previously pointed out, when he’s […]
The Wrong War For Central Banking
The Wrong War For Central Banking Fixated on inflation targeting in a world without inflation, central banks have lost their way. With benchmark interest rates stuck at the dreaded zero bound, monetary policy has been transformed from an agent of price stability into an engine of financial instability. A new approach is desperately needed. The […]
This Is Why It’s Going to Get Even Tougher
This Is Why It’s Going to Get Even Tougher The third quarter was tough for US corporations. Worse than the prior two quarters. They got waylaid by weak global demand and lack of pricing power. The easiest way to increase revenues and profits is to raise prices, so via inflation, but that strategy isn’t working […]
The End of the World Has Already Begun
The End of the World Has Already Begun Disappearing Growth Nothing much to report from the stock market yesterday. Investors are regaining their calm. A few weeks ago, it looked as though the end of the world had begun. We are talking, of course, about the world in which credit, stocks, and central bank reputations […]
