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The Allure and Limits of Monetized Fiscal Deficits
The Allure and Limits of Monetized Fiscal Deficits With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. When that happens, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it. NEW YORK – A cloud of gloom […]
Depopulation and Monetization…Like Peas & Carrots
Depopulation and Monetization…Like Peas & Carrots In contemporary, post world war II times, the process of depopulation is the declining number of births pitted against significantly longer life spans of the existing population. Given this, depopulation starts from the declining quantity of young and slowly works its way up the population. So, as depopulation is […]
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does)
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does) Being I’m not an economist nor associated with any financial or investment institutions nor do I have anything for you (dear reader) to buy or sell, I have total freedom to say what I please and freedom to share what I see. In that spirit, I […]
Fed President Sounds Panic Over Level Of US Debt
Fed President Sounds Panic Over Level Of US Debt Nearly a decade after the US unleashed its biggest debt-issuance binge in history, made possible only thanks to the Fed’s monetization of nearly $4 trillion in deficits (and debt issuance), the Fed is starting to get nervous about the (un)sustainability of the US debt. The Federal […]
Former IMF Chief Economist Admits Japan’s “Endgame” Scenario Is Now In Play
Former IMF Chief Economist Admits Japan’s “Endgame” Scenario Is Now In Play Back in October 2014, just after the BOJ drastically expanded its QE operation, we warned that the biggest risk facing the BOJ (and the ECB, and the Fed, and all other central banks actively soaking up securities from the open market) was a lack […]
The Incredible Shrinking Benefits Of Massive Japanese Money Printing
The Incredible Shrinking Benefits Of Massive Japanese Money Printing Excerpted from JPMorgan CIO Michael Cembalest 2016 Outlook, Something is wrong with this picture. In the US and Japan, corporate profits sank during the global financial crisis. In the US, the profit recovery was accompanied by a recovery in household income. In Japan, however, corporate profits […]
Buiter: Only “Helicopter Money” Can Save The World From The Next Recession
Buiter: Only “Helicopter Money” Can Save The World From The Next Recession It is to be expected that economists – even economists working for the same team – have different views about the likelihood of different future outcomes. Economics isn’t rocket science, and even rockets frequently land in the wrong place or explode in […]
The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play
The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play The most important piece of news announced today was also, as usually happens, the most underreported: it had nothing to do with US jobs, with the Fed’s hiking intentions, with China, or even the ongoing “1998-style” carnage in emerging markets. Instead, […]
Goldman “Conspiracy Theory” Validated As ECB Expands QE Program
Goldman “Conspiracy Theory” Validated As ECB Expands QE Program The ECB has expanded the list of SSA securities eligible for purchase under PSPP. The updated list includes: Tyoettoemyysvakuutusrahasto OeBB-Infrastruktur Asfinag Infraestruturas de Portugal Entidade Nacional para o Mercado de Combustiveis Ferrovie dello Stato Italiane Terna Spa – Rete Elettrica Nazionale ENEL SNAM Administrador de Infraestructuras […]
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems When we look back from 2025, it will be painfully obvious that central bank policies exacerbated the systemic crises that brought down the global financialization machine. What with all the praise being heaped on central banks for “saving” the world from economic doomsday in […]
