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Tag Archives: central banks
Are Inflationary Expectations the Heart of Inflation?
ARE INFLATIONARY EXPECTATIONS THE HEART OF INFLATION? For most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price of oil, individuals may form higher inflationary expectations that could set in motion spiraling price inflation, or so it is held. If somehow expectations […]
Bob Dylan as Economic Prophet
Bob Dylan as Economic Prophet We have a habit on our trading floor of playing Bob Dylan whenever the markets start selling off. We hardly ever play Dylan these days. Though I consider the Nobel Laureate something of a personal classical liberal icon, I don’t remember exactly how this office tradition ever started. But the […]
Drowning In The Money River
Photobank gallery/Shutterstock Drowning In The Money River Why the 99% of us are falling farther behind It’s a big club and you ain’t in it. ~ George Carlin If you suspect society is unfair, that there’s a different set of rules the rich live by, you’re right. I’ve had ample chance to witness first-hand evidence […]
What Has QE Wrought?
What Has QE Wrought? [Editor’s Note: Watch Ron Paul deliver this Special Report here.] The Great Recession began in 2007. It didn’t take long for the money managers to recognize its severity, and that a little tinkering with interest rates would not suffice in dealing with the economic downturn. In Dec. 2008, the first of four Quantitative […]
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo
ECB Spawned Mass Culture of Financial Dependency that’s Now Very Hard to Undo Right at the front of the monetary welfare queue is the government of Italy. As the Eurozone economy continues to grow, pressure is rising on Europe’s biggest bond buyer, the ECB, to withdraw from the market, a process it has already begun. […]
Party While You Can – Central Bank Ready To Pop The ‘Everything’ Bubble
Party While You Can – Central Bank Ready To Pop The ‘Everything’ Bubble Many people do not realize that America is not only entering a new year, but within the next month we will also be entering a new economic era. In early February, Janet Yellen is set to leave the Federal Reserve and be […]
QE Party Over, even by the Bank of Japan
QE Party Over, even by the Bank of Japan First decline in its colossal balance sheet since 2012. An amazing – or on second thought, given how central banks operate, not so amazing – thing is happening. On one hand… Bank of Japan Governor Haruhiko Kuroda keeps saying that the BOJ would “patiently” maintain its […]
Why the Financial System Will Break: You Can’t “Normalize” Markets that Depend on Extreme Monetary Stimulus
Why the Financial System Will Break: You Can’t “Normalize” Markets that Depend on Extreme Monetary Stimulus Central banks are now trapped. In a nutshell, central banks are promising to “normalize” their monetary policy extremes in 2018. Nice, but there’s a problem: you can’t “normalize” markets that are now entirely dependent on extremes of monetary stimulus. […]
Forecast 2018 — What Could Go Wrong?
Forecast 2018 — What Could Go Wrong? Markets If you take your cues from Consensus Trance Central — the cable news networks, The New York Times, WashPost, and HuffPo — Trump is all that ails this foundering empire. Well, Trump andRussia, since the Golden Golem of Greatness is in league with Vladimir Putin to loot […]
How Much Death and Destruction Awaits Us in 2018?
How Much Death and Destruction Awaits Us in 2018? The New Year is one full of economic, political, and war threats. Among the economic threats are stock, bond, and real estate markets artificially pumped up by years of central bank money creation and by false reports of full employment. It is an open question whether […]
The Greatest Bubble Ever: Why You Better Believe It, Part 2
The Greatest Bubble Ever: Why You Better Believe It, Part 2 During the 40 months after Alan Greenspan’s infamous “irrational exuberance” speech in December 1996, the NASDAQ 100 index rose from 830 to 4585 or by 450%. But the perma-bulls said not to worry: This time is different—-it’s a new age of technology miracles that will change the laws […]
The Inescapable Reason Why the Financial System Will Fail
girardatlarge.com The Inescapable Reason Why the Financial System Will Fail Credit cannot expand faster than fundamentals forever Modern finance has many complex moving parts, and this complexity masks its inner simplicity. Let’s break down the core dynamics of the current financial system. The Core Dynamic of the “Recovery” and Asset Bubbles: Credit Credit is the […]
Weekly Commentary: A Phenomenal Year
Weekly Commentary: A Phenomenal Year 2017 was phenomenal in so many ways. The year will be remembered for a tumultuous first year of the Trump Presidency, the passage of major tax legislation and seemingly endless stock market records. It was a year of synchronized global growth and stock bull markets, along with record low market […]
The Greatest Bubble Ever: Why You Better Believe It, Part 1
The Greatest Bubble Ever: Why You Better Believe It, Part 1 During the 40 months after Alan Greenspan’s infamous “irrational exuberance” speech in December 1996, the NASDAQ 100 index rose from 830 to 4585 or by 450%. But the perma-bulls said not to worry: This time is different—-it’s a new age of technology miracles that will change the laws […]
