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Olduvai III: Catacylsm
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St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity

St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity Not only do banks earn free money on excess reserves, they can borrow money and make guaranteed free money on that. The Federal Reserve Bank of St. Louis discusses the Carry Trade in Liquidity. The IOER [interest on excess reserves] has been the […]

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Inflation Alert: The Velocity Of Money Has Finally Bottomed

Inflation Alert: The Velocity Of Money Has Finally Bottomed Forget the Trump tax cuts, the Senate budget deal, the Fed’s Quantitative Tightening and the collapse in foreign buying of US Treasuries: after years of dormancy, the biggest catalyst for a sharp inflationary spike has finally emerged, and it is none of the above. Behold: the […]

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St. Louis Fed Promotes the Mathematically Impossible

St. Louis Fed Promotes the Mathematically Impossible It’s bad enough when economic writers are clueless about how markets work. It’s worse when Fed economists are clueless. Check out this Tweet by @StLoiusFed. View image on Twitter St. Louis Fed ✔@stlouisfed Negative interest rates may seem ludicrous, but not if they succeed in pushing people to […]

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Will The Fed Follow The BoJ Down The NIRP Rabbit Hole?

Will The Fed Follow The BoJ Down The NIRP Rabbit Hole? On Monday, in “JPM Looks At Draghi’s ‘Package,’ Finds It ‘Solid’ But Underwhelming,” we noted that according to Mislav Matejka, investors would do well to fade the ECB’s latest attempt to jumpstart inflation, growth, and of course asset prices with Draghi’s version of a […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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