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Tag Archives: monetary policies
Those who the gods wish to destroy…
Those who the gods wish to destroy… The UK is already in a de facto recession – only the fiddling of the data to count GP appointments as a value-adding activity led to a paltry 0.5 percent GDP growth in May. Discretionary spending has already plummeted, and it is only a matter of time before we see […]
Time to Get Real: Part I
Time to Get Real: Part I In a world where fair value is a central bank veiled enigma it’s frankly a challenge to keep things real, but I’ll have a go at it in what will be a 3 part series covering central banks, the underlying fundamental picture, and a technical assessment of charts. In this part I’ll be covering […]
Sorry Losers!
Sorry Losers! By its actions, the Federal Reserve has selected a precious few winners and many, many losers. Sadly, you are highly likely to be one of the losers. Sorry! I’m one, too, if that helps soften the blow. But we have a lot of company. Other losers include: Savers Anyone with money in a […]
Analysis: China Stalls on Debt Reforms
Analysis: China Stalls on Debt Reforms Background The Chinese government has a $3.5 trillion-dollar problem in the form of local government debt. Most of it accrued in the years between 2007 and 2014, when China’s total debt spiked from $7.4 trillion to $28 trillion, or from 158% of GDP to 282%. At fault was a […]
When Exactly Will the Fed Launch QE4?
When Exactly Will the Fed Launch QE4? Money From Nowhere On Friday, the S&P 500 and the Nasdaq closed at record highs. It’s the first time both indexes have done so since December 31, 1999. Why such optimism? High profits, you say. But where do profits come from? Households have less money to spend than […]
And I Didn’t Even Mention Greece, the End of the Euro or Evil Russia!! Yikes!
And I Didn’t Even Mention Greece, the End of the Euro or Evil Russia!! Yikes! This is a screen shot from my iPhone about a week ago. And really this says it all. Breaking news is highlighting the all time highs again while the underlying economic news is negative across the board. No other time […]
‘Two Percent Inflation’ and The Fed’s Current Mandate
‘Two Percent Inflation’ and The Fed’s Current Mandate Over the last 100 years the Fed has had many mandates and policy changes in its pursuit of becoming the chief central economic planner for the United States. Not only has it pursued this utopian dream of planning the US economy and financing every boondoggle conceivable in […]
Low inflation should not be feared, says George Osborne
Low inflation should not be feared, says George Osborne The sharp fall in the UK inflation rate should not be feared, Chancellor George Osborne will say in a speech later. “We should not confuse this welcome news with the threat of damaging deflation that we see in the eurozone,” he will say in a speech. […]
How Will US Fed React To Low Oil Prices
How Will US Fed React To Low Oil Prices. Falling oil prices are the newest wrench in the Fed’s decision making, but the effect might seem counter-intuitive. Since the Fed’s last meeting in October, oil prices have fallen 25%. With a meeting scheduled for this week, markets have two major questions about the Federal Open […]
This Time Is The Same: Like The Housing Bubble, The Fed Is Ignoring The Shale Bubble In Plain Sight | David Stockman’s Contra Corner
This Time Is The Same: Like The Housing Bubble, The Fed Is Ignoring The Shale Bubble In Plain Sight | David Stockman’s Contra Corner. We are now far advanced into the third central bank generated bubble of the last two decades, but our monetary politburo has taken no notice whatsoever of its self-evident leading wave.Namely, […]
The Consequences of Imposing Negative Interest Rates |
The Consequences of Imposing Negative Interest Rates |. Negative Interest Rates and Capital Consumption Ever since the ECB has introduced negative interest rates on its deposit facility, people have been waiting for commercial banks to react. After all, they are effectively losing money as a result of this bizarre directive, on excess reserves the accumulation […]
