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Tag Archives: monetary policy
Sweden Warns Of Dire “Consequences” From Massive Housing Bubble, Heavily Indebted Households
Sweden Warns Of Dire “Consequences” From Massive Housing Bubble, Heavily Indebted Households Late last month, Sweden tripled down on QE, as the Riksbank announced it would expand its asset purchases by SEK65 billion. Or, visually: The recent history of Swedish monetary policy is viewed by some as a cautionary tale about what can happen when a […]
US Money Supply Growth Finally Begins to Crack
US Money Supply Growth Finally Begins to Crack Breaking Below the Shelf In our recent missive on junk bonds, we inter alia discussed the fact that the growth rate of the narrow money supply aggregate M1 had declined rather noticeably from its peak in 2011. Here is a link to the chart. As we wrote: “We also […]
Weekly Commentary: Monetary Fiasco
Weekly Commentary: Monetary Fiasco All great monetary fiascos are forged upon a foundation of misperceptions and flawed premises. There’s always an underlying disturbance in money and Credit masked by supposed new understandings, technologies, capabilities and superior financial apparatus. During the nineties “New Paradigm” period, exciting new technologies and “globalization” were seen unleashing a productivity and […]
Here Is The Complete Scenario In Which The Fed Hikes Rates, Starts A Recession, And Launches QE4
Here Is The Complete Scenario In Which The Fed Hikes Rates, Starts A Recession, And Launches QE Seven years after the Fed unleashed ZIRP and QE to “fix the economy”, it has finally admitted that ZIRP and QE failed to do that (although they certainly succeeded in blowing the biggest asset bubble ever), and for […]
The Fed’s Dollar Distraction
The Fed’s Dollar Distraction In its September policy statement, the US Federal Reserve took into consideration – in a major way – the impact of global economic developments on the United States, and thus on US monetary policy. Indeed, the Fed decided to delay raising interest rates partly because US policymakers expect dollar appreciation, by lowering […]
Advice to the Prime Minister/President
Advice to the Prime Minister/President Your country faces a stagnating economy. Let us assume your Prime Minister (or President if that is who holds the executive power) seeks advice from two imaginary economists. PM: You two economists have different views on what our economic policy should be. What is your advice? FIRST ECONOMIST (Austrian school): Prime Minister, the […]
How Do People Destroy Their Capital?
How Do People Destroy Their Capital? I have written previously about the interest rate, which is falling under the planning of the Federal Reserve. The flip side of falling interest rates is the rising price of bonds. Bonds are in an endless, ferocious bull market. Why do I call it ferocious? Perhaps voracious is a better word, […]
The Federal Reserve, Interest Rates and Triffin’s Paradox
The Federal Reserve, Interest Rates and Triffin’s Paradox There is no way Fed policy can be win-win-win for all participants. One result of the global dependence on central bank interventions is a unhealthy fixation on the slightest changes in those interventions, oops I meant policies. Since the slightest pull-back in central bank inflation of asset bubbles […]
Financial Trend Analyst Warns: “This Suicide Move Will Implode The Whole Thing”
Financial Trend Analyst Warns: “This Suicide Move Will Implode The Whole Thing” Job losses across America continue to mount, housing is topping and recent reports from some of the nation’s leading retailers show that there has been no real, sustainable recovery since the crash of 2008. This, according to trend analyst Daniel Ameduri of Future Money […]
They’re coming for your cash
They’re coming for your cash It might sound like a conspiracy theory spun by right-wing crazies. But judging by the increasing desperation of governments to reboot the world economy, it just might happen. “It” is the recall or confiscation of cash, i.e., dollars, euros, pounds, etc., in physical form. And a key justification that those […]
The Bubble Finance Cycle: What Our Keynesian School Marm Doesn’t Get, Part 2
The Bubble Finance Cycle: What Our Keynesian School Marm Doesn’t Get, Part 2 In Part 1 of The Bubble Finance Cycle we demonstrated that a main street based wage and price spiral always proceeded recessions during the era of Lite Touch monetary policy (1951 to 1985). That happened because the Fed was perennially “behind the curve” and […]
Ex-World Bank chief economist exposes “failure” of austerity, deregulation
Ex-World Bank chief economist exposes “failure” of austerity, deregulation Joseph Stiglitz, a senior OECD expert, slams OECD’s own policies to prevent global slowdown In a little-known speech at the United Nations University, renowned Nobel Prize-winning economist Joseph Stiglitz criticised Western approaches to addressing the global economic crisis for being obsessed with market solutions that cannot […]
Is Judgment Day At Hand?
Is Judgment Day At Hand? What is Judgment Day? It is like ancient times that the Feds, under Greenspan, somehow decided that US needed to follow a zero interest rate policy, a policy now known as the ZIRP. It was 2008 when Bernanke gave birth to the term Quantitative Easing, QE. QE was followed by Operation […]
The Leviathan
The Leviathan The economic picture manufactured by the national consensus trance has never been more out of touch with reality in my lifetime. And so the questions as to what anyone might do can hardly be addressed. How can I protect my savings? Who do I vote for? How do I think about where my […]
