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Tag Archives: monetary policy
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 […]
Why All Central Planning Is Doomed to Fail
Why All Central Planning Is Doomed to Fail Positivist Delusions [ed. note: this article was originally published on March 5 2013 – Bill Bonner was on his way to his ranch in Argentina, so here is a classic from the archives] We’re still thinking about how so many smart people came to believe things that […]
Former Fed Advisor Asks “Has The Fed Bankrupted The Nation”
Former Fed Advisor Asks “Has The Fed Bankrupted The Nation” Volcker, Greenspan, Bernanke and Yellen. Which one does not belong? Logic dictates that Volcker should have been odd man out. After all, there is no legendary “Volcker Put.” The towering monetarist made no bones about never being bound by the financial markets. The same can certainly not […]
What’s Wrong With Negative Rates?
What’s Wrong With Negative Rates? NEW YORK – I wrote at the beginning of January that economic conditions this year were set to be as weak as in 2015, which was the worst year since the global financial crisis erupted in 2008. And, as has happened repeatedly over the last decade, a few months into the year, […]
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 […]
Peak Negative-Interest-Rate Absurdity? Hilarity Ensues
Peak Negative-Interest-Rate Absurdity? Hilarity Ensues Among the goodies: “reverse Yankee” landmines. When a central bank like the ECB imposes negative interest rates along with QE on its bailiwick, funny things start to happen. Investors become so eager to get any kind of visible yield that they will do the craziest things. They’re now chasing €3 […]
SocGen: “Now We Know Why The Fed Desperately Wants To Avoid A Drop In Equity Markets”
SocGen: “Now We Know Why The Fed Desperately Wants To Avoid A Drop In Equity Markets” With the ECB now unabashedly unleashing a bond bubble in Europe of which it has promised to be a buyer of last resort with the stronly implied hint that European IG companies should issue bonds and buy back shares, and promptly […]
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, […]
The Catastrophic Mismanagement of the Economy & The Coming Meltdown
The Catastrophic Mismanagement of the Economy & The Coming Meltdown We are finishing up the “Pension Crisis – The Next Nightmare,” which is a special report outlining the next global meltdown. Germany’s Federal Finance Minister Schaeuble is now openly blaming Mario Draghi for the electoral success of the AFD in Germany, which is the Alternative for Germany (In German: Alternative für […]
Schauble Throws Up All Over Mario Draghi: “The ECB Is Causing Extraordinary Problems”
Schauble Throws Up All Over Mario Draghi: “The ECB Is Causing Extraordinary Problems” Following this weekend’s snafu in which Spiegel said that Germany is considering suing the ECB if it launched QE, Mario Draghi reportedly made attempts to “mollify” Germany with promises that this won’t happen (it will) and that it was willing to meet […]
Former IMF Chief Economist Admits Japan’s “Endgame” Scenario Is Now In Play
Former IMF Chief Economist Admits Japan’s “Endgame” Scenario Is Now In Play Back in October 2014, just after the BOJ drastically expanded its QE operation, we warned that the biggest risk facing the BOJ (and the ECB, and the Fed, and all other central banks actively soaking up securities from the open market) was a lack […]
Ben Bernanke: “Helicopter Money May Be The Best Available Alternative”
Ben Bernanke: “Helicopter Money May Be The Best Available Alternatives Now that the prospect of helicopter money by the ECB has so infuriated Germany, the ECB had to reach out to Schauble to “mollify” the Germans who are dreading the second coming of monetary paradrops in one century, it was only a matter of time before Citadel’s […]
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 […]
