Home » Posts tagged 'interest rate policy' (Page 5)
Tag Archives: interest rate policy
The Essence of Interest Rate Determination
The Essence of Interest Rate Determination According to mainstream thinking the Central Bank is the key factor in determining interest rates. By setting short-term interest rates the Central Bank, it is argued through expectations about the future course of its interest rate policy influences the entire interest rate structure. (According to the expectations theory (ET) […]
Why The Keynesian Chorus Is Cackling Like Chicken Little
Why The Keynesian Chorus Is Cackling Like Chicken Little This is getting way too stupid. The Keynesian Chorus has launched a full blast trilling campaign, emitting a shrill cackle of warnings against a Fed rate hike. Yes, 80 months of pumping free money into the canyons of Wall Street is not enough. Why? Well, this is hard to type with a straight […]
The Endless Emergency—–Why It’s Always ZIRP Time In The Casino
The Endless Emergency—–Why It’s Always ZIRP Time In The Casino Based on the headline from the latest Jobs Friday report you wouldn’t know that we are still mired in an economic emergency—–one apparently so extreme that it might entail moving to the 81st straight month of zero interest rates at next week’s FOMC meeting. After all, the unemployment rate came in smack-dab on the Fed’s […]
“Everyone Preparing for the Wrong Outcome”: Schiff Says QE4 is Coming, Not a Rate Hike!
“Everyone Preparing for the Wrong Outcome”: Schiff Says QE4 is Coming, Not a Rate Hike! The printing presses are firing up all over again… err, at least the digital ledgers are, anyway. Financial expert and infamous goldbug Peter Schiff was interviewed by Fox Business from the floor of the U.S. Stock Exchange. Schiff warned viewers […]
Interest rate cuts a two-edged sword for Bank of Canada: Don Pittis
Interest rate cuts a two-edged sword for Bank of Canada: Don Pittis Another decrease could spur exports but would announce serious pessimism Conjure up an image of Bank of Canada governor Stephen Poloz in Hamlet pantaloons, hand to brow, declaiming to the middle distance: “To cut or not to cut?” A confusion of contradictory economic […]
GDP figures from Statistics Canada expected to show second-quarter contraction
GDP figures from Statistics Canada expected to show second-quarter contraction Lower loonie expected to boost economy in third quarter Economists say data out this week is likely to show that Canada slipped into a technical recession in the second quarter, but the contraction should be short-lived. “A number of positive elements are coming through,” said TD […]
China: Doomed If You Do, Doomed If You Don’t
China: Doomed If You Do, Doomed If You Don’t Whichever option China chooses, it loses. Many commentators have ably explained the double-bind the central banks of the world find themselves in. Doing more of what’s failed is, well, failing to generate the desired results, but doing nothing also presents risks. China’s double-bind is especially instructive. While there an […]
Why we need to lie to ourselves about the state of the economy
Why we need to lie to ourselves about the state of the economy Since 2007, global debt has grown by US$57 trillion, or 17 per cent of the world’s gross domestic product. Photo: Louie Douvis Like the characters in Samuel Beckett’s Waiting for Godot, the world awaits the return of wealth and prosperity. But the global economy […]
The Central Bankers’ Malodorous War On Savers
The Central Bankers’ Malodorous War On Savers Well, that didn’t take long! After just three days of market turmoil the monetary politburo swung into action. This time they sent out B-Dud to promise still another monetary sweetener. Said the head of the New York Fed, “From my perspective, at this moment, the decision to begin the normalization process […]
Wall Street and the Cycle of Crises
Wall Street and the Cycle of Crises Regular readers of the leftish press have recently been presented with a raft of pleas coming from intelligent and occasionally articulate economists that the Federal Reserve not to raise interest rates. The general point being argued is that interest rates are the price of borrowed money, that raising […]
Trouble South Of The Border
Trouble South Of The Border Mexico’s vulnerabilities pose a huge risk to the U.S. Too big to fail is a seven-year phenomenon created by the most powerful central banks to bolster the largest, most politically connected US and European banks. More than that, it’s a global concern predicated on that handful of private banks controlling […]
Yes, We Have No Bananas–or Rate Hikes
Yes, We Have No Bananas–or Rate Hikes The world’s most powerful central bank is relying on a novelty tune to maintain the hyper-speculative status quo. Back in the Roaring 1920s, a novelty song entitled Yes! We Have No Bananas (1923) was a major hit. The song made fun of a fruit vendor who answered “yes” to every query–even […]
The Federal Reserve – Which CREATED Quantitative Easing – Admits QE Doesn’t Work
The Federal Reserve – Which CREATED Quantitative Easing – Admits QE Doesn’t Work Even the Fed Admits QE Doesn’t Work The Vice President of the Federal Reserve Bank of St Louis (Stephen Williamson) writes in a new Fed white paper (as explained by Zero Hedge): The theory behind Quantitative Easing (QE) is “not well-developed” The evidence in support […]
Turkey Turmoiling: Lira Plunges To Record Low On Financial, Political, Terrorism Fears
Turkey Turmoiling: Lira Plunges To Record Low On Financial, Political, Terrorism Fears Turkey’s lira is once again in free fall, after testing all-time lows against the dollar during multiple sessions of late as political turmoil and civil war wreak havoc on the currency. On Tuesday, the central bank failed to hike rates and delivered what was generally […]
