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Tag Archives: interest rates
Gold Sector Correction – What Happens Next?
Gold Sector Correction – What Happens Next? The Long Awaited Correction is Underway The gathering of central planners at Jackson Hole was widely expected to bring some clarity regarding the Fed’s policy intentions. This is of course a ridiculous assumption, since these people have not the foggiest idea what they are doing or what they […]
Risk On/Risk Off: What Schizophrenic Markets Are Telling Us
Risk On/Risk Off: What Schizophrenic Markets Are Telling Us These trends cannot be reversed with yet another rate cut or another “whatever it takes” announcement. In the conventional investment perspective, risk-on assets (i.e. investments with higher risks and higher potential returns) such as stocks are on a see-saw with risk-off assets (investments with lower returns and lower risk, such as […]
Bernanke Blew It Big-Time: He Should Have Raised Rates Three Years Ago
Bernanke Blew It Big-Time: He Should Have Raised Rates Three Years Ago Bernanke blew it big-time, letting the “recovery” run seven years without any significant increase in rates. It is now painfully obvious that Ben Bernanke blew it big-time by not raising rates three years ago when the economy and markets enjoyed tailwinds. The former Federal […]
Another Real Estate Crash Is Coming: Legendary Market Timer Unloads His Positions: “They’ve Sold Deferred Reality For So Long…”
Another Real Estate Crash Is Coming: Legendary Market Timer Unloads His Positions: “They’ve Sold Deferred Reality For So Long…” If you haven’t heard yet, median home prices in the United States are on a tear having reached all-time highs in April. To boot, rental prices have gone insane, showing a year-over-year inflationary increase of 8%. On top of that, […]
Simultaneous Elderly Overpopulation, Youth Depopulation & The Impact on Economic Growth
Simultaneous Elderly Overpopulation, Youth Depopulation & The Impact on Economic Growth Strangely, the world is suffering from two seemingly opposite trends…overpopulation and depopulation in concert. The overpopulation is due to the increased longevity of elderly lifespans vs. depopulation of young populations due to collapsing birthrates. The depopulation is among most under 25yr old populations (except Africa) […]
Central Banks Are Trapped – Are Higher Interest Rates the Only Answer?
Central Banks Are Trapped – Are Higher Interest Rates the Only Answer? COMMENT: Marty, well it looks like you have done it. The central banks are going to start raising interest rates right in line with your model. It is interesting how your computer puts the entire world before you to see. Keep up the good […]
The Elephant Cometh
The Elephant Cometh The elephant’s not even in the room, which is why the 2016 election campaign is such a soap opera. The elephant outside the room is named Discontinuity. That’s perhaps an intimidating word, but it is exactly what the USA is in for. It means that a lot of familiar things come to an […]
Bank of Canada keeps benchmark interest rate at 0.5%
Bank of Canada keeps benchmark interest rate at 0.5% Central bank’s rate has impact on rates offered by commercial banks for loans and savings accounts The Bank of Canada, lead by governor Stephen Poloz, kept its benchmark lending rate at 0.5 per cent on Wednesday. (Adrian Wyld/Canadian Press) Canada’s central bank stood pat today, electing […]
You’ve Been Warned – Ben Bernanke Praises “Helicopter Money” in Latest Blog Post
You’ve Been Warned – Ben Bernanke Praises “Helicopter Money” in Latest Blog Post Don’t say you weren’t warned. What follows are some excerpts from Banana Republic Ben’s latest blog post titled, What Tools Does the Fed Have Left? Part 3: Helicopter Money. When monetary policy alone is inadequate to support economic recovery or to avoid too-low inflation, […]
Interest Rates and Gold
INTEREST RATES AND GOLD It is commonly assumed that the gold price and interest rates move in opposite directions. In other words, a tendency towards higher interest rates is accompanied by a lower gold price. Like all assumptions about prices, sometimes it is true and sometimes not. The market today is all about synthetic gold, […]
Can We Grow Out Of Our Problems If We’re Not Actually Growing?
Can We Grow Out Of Our Problems If We’re Not Actually Growing? The rationale for today’s easy money policies is pretty straightforward: Falling interest rates and rising government deficits will counteract the drag of excessive debts taken on in previous stimulus programs and asset bubbles, enabling the developed world to create wealth faster than it […]
Going Into Debt to Invest Into Debt…
Going Into Debt to Invest Into Debt… Bankers Hate It When You Hold Cash In an extraordinary turn of events, last week we were contacted by our local bankers. Since we were turned down for a mortgage in 1982 (our business finances were thought to be “too shaky”), we have had little truck with them. We pay […]
The Fed Can’t Save Us
The Fed Can’t Save Us In December, the Fed hiked its target for the federal funds rate, which is the interest rate banks charge each other for overnight loans of reserves. Since 2008 the Fed’s target for the Fed Funds Rate had been a range of 0 percent – 0.25 percent (or what is referred […]
Triffin’s Paradox Revisited: Crunch-Time for the U.S. Dollar and the Global Economy
Triffin’s Paradox Revisited: Crunch-Time for the U.S. Dollar and the Global Economy The reality is that we’re one panic away from foreign-exchange markets ripping free of central bank manipulation. While all eyes on fixated on global stock markets as the measure of “prosperity” and “growth” (or is it hubris?), the larger force at work beneath […]
Benn Steil: Why Is Paul Krugman Still Calling For Fiscal Stimulus?
BENN STEIL: WHY IS PAUL KRUGMAN STILL CALLING FOR FISCAL STIMULUS? Nobel economist and New York Times columnist Paul Krugman is fond of mocking his critics for being ideologues rather than economists. In contrast, Krugman’s own policy prescriptions, he assures us, are based wholly on soundeconomic science. Case in point is the theory of liquidity traps, which goes back […]
