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Tag Archives: monetary tightening
The Fed’s QE Unwind Reaches $285 Billion
The Fed’s QE Unwind Reaches $285 Billion The “up to” begins to matter for the first time. The Fed released its weekly balance sheet Thursday afternoon. Over the four-week period from September 6 through October 3, total assets on the Fed’s balance sheet dropped by $34 billion. This brought the decline since October 2017, when […]
Next Up: Global Synchronized Easing
Next Up: Global Synchronized Easing Global economic tightening is a pipe dream. It hasn’t happened yet, and likely won’t. Bloomberg writer Komal Sri-Kumar says, and I agree, Don’t be Surprised by a Switch Global Synchronized Easing. Global investors are positioned for a coordinated tightening of monetary policy by the world’s major central banks. Although the […]
US vs. China–Is it ‘Art of the Deal’ or Economic Warfare?
US VS CHINA – IS IT ‘ART OF THE DEAL’ OR ECONOMIC WARFARE? If monetary tightening remains the main risk for global stock markets, the threat of a trade war continues to dominate the headlines.THE DONALD’S DEALMAKING Some of those in Washington pushing this policy view China as some kind of strategic rival for global […]
Why India’s Surprise Rate Hike May Lead To The Next Emerging Market Crisis
Why India’s Surprise Rate Hike May Lead To The Next Emerging Market Crisis Following RBI governor Urjit Patel’s Op-ed earlier this week, in which he lamented the growing dollar shortage as a result of the Fed’s ongoing tightening, it is perhaps not surprising that this morning India became the latest central bank to “surprise” markets […]
Weekly Commentary: End of an Era
Weekly Commentary: End of an Era Of the diverse strains of inflation, asset inflation is by far the most dangerous. A bout of consumer price inflation would be generally recognized as problematic and rectified through a tightening of monetary conditions. On the other hand, asset price inflation is both celebrated and venerated. There is simply […]
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 […]
Yellen Is Trapped in the Worst Nightmare Ever
Yellen Is Trapped in the Worst Nightmare Ever Yellen has inherited a complete nightmare. Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed. There is a lot of speculation about why the Fed seems so reluctant to“normalize monetary policy”. There are of course […]
“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 […]
The Media Is Wrong About The Fed
The Media Is Wrong About The Fed Earlier this year, most of the financial stories were about how the Fed will start to raise interest rates in June. Much of this speculation was due to the lower unemployment rate, and the expectation that the U.S. economy would be in full recovery. This past Wednesday, the Fed […]
The Ghost of ’37
The Ghost of ’37 With the Fed supposedly steeling itself at last to remove a little of its emergency ‘accommodation’, it has suddenly become fashionable to warn of the awful parallels with 1937, as the highly-respected Ray Dalio of Bridgewater has notably done. That year, the story goes, the nation’s ascent from the depths of […]
The Fed Blew It
The Fed Blew It The Fed had multiple opportunities to let the air out of unsustainable asset bubbles by notching interest rates higher and tapering its asset purchases (QE). The Federal Reserve blew it by not normalizing interest rates a long time ago. The consensus in financial circles is the exact opposite: the Fed has blown […]
