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Tag Archives: interest rate policy
Economic Crisis Goes Mainstream – What Happens Next?
Economic Crisis Goes Mainstream – What Happens Next? Last year, when alternative economic analysts were warning that the commodities crush and oil crash just after the taper of QE3 were blaring signals for a downshift in all other financial indicators, the general response in the mainstream was that we were overreacting and paranoid and that […]
Will the Fed Hesitate? “Everything is Too Vulnerable” for Rate Change, Says Ron Paul
Will the Fed Hesitate? “Everything is Too Vulnerable” for Rate Change, Says Ron Paul The system is teetering on edge, and nearly everyone in the financial sector is waiting for one decision – will the Fed finally raise rates? Ron Paul has made a bold prediction that the Federal Reserve likely will NOT raise interest […]
Approaching a Global Deflationary Crisis?
Approaching a Global Deflationary Crisis? Anyone with any sense for global economic trends ought to be worried. The signs are everywhere of a serious deflationary crisis. It is obvious that Chinese growth is falling. The prices for energy and the raw materials that feed the growth economy keep falling. The demand for Chinese exports is […]
Welcome to the world of ZIRP zombies
Welcome to the world of ZIRP zombies Interest rates in the US, Europe and the UK were reduced to close to zero in the wake of the Lehman crisis nearly seven years ago. Initially zero interest rate policy (ZIRP) was a temporary measure to counter the price deflation that immediately followed the crisis, but since […]
QE is “Not on the Table,” says Joe Oliver
QE is “Not on the Table,” says Joe Oliver In a world where central banks are given free rein over the supply of money and credit, and where any examination of these secretive institutions is considered interference with their “independence,” Finance Minister Joe Oliver’s comments about QE have not gone unnoticed. The other week Oliver […]
Low interest rates prompt savers to borrow to invest
Low interest rates prompt savers to borrow to invest Kevin Stone plans to borrow $20K this year to invest in various stocks Kevin Stone is 28 years old and already has over half a million dollars of debt, including a mortgage and a loan to purchase farmland. But he’s not concerned, because that apparent burden is actually helping fuel his […]
Fed Admits Economy Can’t Function Without Bubbles
Fed Admits Economy Can’t Function Without Bubbles In short, the dot-com bust was the last chance for the Fed to pivot and liberate the American economy from the corrosive financialization it had fostered. A determined policy of higher interest rates and renunciation of the Greenspan Put would have paved the way for a return to current […]
Money and Spheres
Money and Spheres In a tiny subsection of the analytical world, analysis is becoming more pointed and poignant. I appreciate Bill Gross’s August commentary, where he concluded: “Say a little prayer that the BIS, yours truly, and a growing cast of contrarians, such as Jim Bianco and CNBC’s Rick Santelli, can convince the establishment that […]
Fed Is Not Just Behind The Curve, It’s Driving The Bus Over The Cliff
Fed Is Not Just Behind The Curve, It’s Driving The Bus Over The Cliff So the Fed didn’t raise rates again. And the timing of the rate increase will be data dependent. Ho hum. There’s just one little problem. The inflation measures the Fed watches really don’t measure inflation. The Fed won’t see what its cronies in the government […]
Bank of Canada Decides More Bubble-Blowing is Needed
Bank of Canada Decides More Bubble-Blowing is Needed You Can’t Keep the Printing Press Idle for too Long … We have recently portrayed Canada’s new central bank governor Stephen Poloz, to whom we have alternately referred to as a comedian and a delusional bubble blower. This may perhaps strike some readers as uncharitable; then again, central […]
Bank of Canada Sees Global Economy, Freaks Out, Cuts Rate, Warns of Financial Stability Risks, Loonie Plunges
Bank of Canada Sees Global Economy, Freaks Out, Cuts Rate, Warns of Financial Stability Risks, Loonie Plunges The Bank of Canada took a good look at the Canadian economy, saw it was sinking into the mire, glanced at the collapsed prices of commodities, particularly oil, saw how they were wreaking havoc in Canada, and then […]
Bank of Canada interest rate decision: To cut or not to cut?
Bank of Canada interest rate decision: To cut or not to cut? With interest rates at historic lows, could it possibly make sense to go even further? It came as a shock to just about everyone when Bank of Canada governor Stephen Poloz announced the central bank would lower its benchmark lending rate in January to 0.75 […]
Side-Effects Include: Household Debt
Side-Effects Include: Household Debt Bank of Canada Governor Stephen Poloz fancies himself a surgeon. He compares cutting interest rates to life-saving surgery for the economy. I consider it more like bloodletting, a terrible practice that is now widely accepted as pseudoscience. According to Canada’s central banker, if the interest rate cut resulted in an increase of […]
Seniors going bankrupt in soaring numbers
Seniors going bankrupt in soaring numbers More Canadians are outliving their savings and spending their golden years in debt Judy Southon never imagined it would come to this. She and her husband Vic had good jobs, raised a son and were homeowners. But after a run of bad luck, the 67-year-old wound up deep in debt and […]
The Global Credit Market Is Now A Lit Powderkeg
The Global Credit Market Is Now A Lit Powderkeg And markets are totally unprepared The financial markets have had a bit of a tough time going anywhere this year. The S&P 500 has been caught in a 6% trading band all year, capped on the upside by a 3% gain and on the downside by […]
