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Tag Archives: interest rates
If Zero Interest Rates Fixed What’s Broken, We’d Be in Paradise
If Zero Interest Rates Fixed What’s Broken, We’d Be in Paradise Rather than fix what’s broken with the real economy, ZIRP/NIRP has added problems that only collapse can solve. The fundamental premise of global central bank policy is simple: whatever’s broken in the economy can be fixed with zero interest rates (ZIRP). And the linear extension […]
Who Will Raise Rates? The Market or the Fed?
Who Will Raise Rates? The Market or the Fed? Some people are confused by what I mean when I say that rates will rise as we move into the sovereign debt crisis, which will pick up steam in 2017 moving into 2020. We are NOT talking about central banks raising rates; we are looking at […]
Central Bank Soap Opera Hides Financial Globalization
Central Bank Soap Opera Hides Financial Globalization Stock markets suspect Federal Reserve has interest rate jitters … Hints that the Fed won’t raise interest rates in March are proving to be good news for miners and oil producers’ share prices The Federal Reserve’s William Dudley said further strengthening in the dollar could have ‘significant consequences’ […]
The War On Savers And The 200 Rulers Of Global Finance
The War On Savers And The 200 Rulers Of Global Finance There has been an economic coup d’état in America and most of the world. We are now ruled by about 200 unelected central bankers, monetary apparatchiks and their minions and megaphones on Wall Street and other financial centers. Unlike Senator Joseph McCarthy, I actually do have a list of their names. […]
Slouching Toward The Dark Side
Slouching Toward The Dark Side Last Wednesday we noted there is something rotten in the state of Denmark, meaning that the world’s great potemkin village of Bubble Finance is unraveling. The evidence piles up by the day. To wit, now comes still another story about the Red Paddy Wagons rolling out in China. This time they are rounding-up the proprietors of a $7.6 […]
The Federal Reserve Just Made Another Huge Mistake
The Federal Reserve Just Made Another Huge Mistake As stocks continue to crash, you can blame the Federal Reserve, because the Fed is more responsible for creating the current financial bubble that we are living in than anyone else. When the Federal Reserve pushed interest rates all the way to the floor and injected lots […]
The End Is Nigh for the Fed’s “Bubble Epoch”
The End Is Nigh for the Fed’s “Bubble Epoch” Market Mythology LONDON – Twice in the last 15 years, markets have tried to correct the mistakes and excesses of the Bubble Epoch. Each time, the Fed came back with even more mistakes and excesses. Trillions in new credit… lower lending rates… easier terms… ZIRP… QE… […]
More Central Bank Trouble in Canada
More Central Bank Trouble in Canada Yesterday, the Governor of the Bank of Canada Stephen Poloz surprised many by not lowering the target for the overnight rate to 0.25% from 0.50%. The central bank cut this rate twice last year in an attempt to stimulate the economy. During the past nine months the TSX index […]
Bank of Canada faces key rate decision Wednesday: To cut or not?
Bank of Canada faces key rate decision Wednesday: To cut or not? Economists have conflicting views on whether the central bank should cut its rate or hold steady Bank of Canada governor Stephen Poloz is set to reveal the bank’s latest decision on interest rates on Wednesday, and many economists say a rate cut could […]
The Fed’s Phony Boom Is Becoming a Real Bust …
The Fed’s Phony Boom Is Becoming a Real Bust … No More Juice Friday’s 391-point drop in the Dow – a nearly 2.5% fall – ended the worst 10-day start to a year in U.S. market history. The average stock in the S&P 1500 – which includes about 90% of all stocks in listed in the […]
What If There Is No “Fed Put” – Paul Brodsky Thinks Yellen Will Not Bailout Markets This Time
What If There Is No “Fed Put” – Paul Brodsky Thinks Yellen Will Not Bailout Markets This Time Earlier today, Art Cashin summarized most (very desperate) traders’ thoughts when he said that as a result of today’s market crash, “the Fed will try anything” to prop up the wealth effect it had so carefully engineered with seven […]
You Can Either Surf, or You Can Fight
You Can Either Surf, or You Can Fight Kilgore: Smell that? You smell that? Lance: What? Kilgore: Napalm, son. Nothing else in the world smells like that. – “Apocalypse Now” (1979) Hello, hello, hello, how low? [x3] – Nirvana, “Smells Like Teen Spirit” (1991) Outside the bus the smell of sulfur hit Bond with sickening force. It was a […]
What’s Behind the Fed’s Decision to Raise Interest Rates in a Struggling Economy?
What’s Behind the Fed’s Decision to Raise Interest Rates in a Struggling Economy? Much has been written and broadcast over the past few weeks in the financial media and the business pages of general-interest newspapers debating the wisdom of the decision in December by Fed Chair Janet Yellen and the Federal Reserve Board to raise […]
The Global Monetary Non-System
The Global Monetary Non-System NEW DELHI – As 2015 ended, the world boasted few areas of robust growth. At a time when both developed and emerging-market countries need rapid growth to maintain domestic stability, this is a dangerous situation. It reflects a variety of factors, including low productivity growth in industrial countries, the debt overhang […]
Falling Interest Causes Falling Profits
FALLING INTEREST CAUSES FALLING PROFITS Most people assume that prices move as a result of changes in the money supply. Instead, let’s look at the effect of changes in interest. To start, consider a hamburger restaurant. Suppose that the average profit in the burger business is ten percent of invested capital. If MacDowell’s is thinking […]
