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Tag Archives: zero interest rate policy
Choking On the Salt of Debt
Choking On the Salt of Debt Life After ZIRP Roughly three years ago, after traversing between Los Angeles and San Francisco via the expansive San Joaquin Valley, we penned the article, Salting the Economy to Death. At the time, the monetary order was approach peak ZIRP. Our boy ZIRP has passed away. Mr. 2.2% effective […]
This ‘Deflationary’ Bull Markets Ending – And Here’s What’s Coming Next For Investors
This ‘Deflationary’ Bull Markets Ending – And Here’s What’s Coming Next For Investors After many years of cheap money and asset bubbles – it looks like the upside is finally over. That is – the potential upside against the amount of risk taken on – is over. I often write about investors needing to find […]
Governments Change, the Corporatocracy Endures
Governments Change, the Corporatocracy Endures Ultimately, the dominance of global capital (the Corporatocracy) is not financial– it’s political. One little-remarked consequence of the central banks’ policies of near-zero interest rates and quantitative easing is the unrivaled dominance of mobile global capital, i.e. the Corporatocracy. The source of corporate political power is the ability to borrow essentially […]
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years There’s a lot of talk going around these days about “helicopter money.” For those unfamiliar, it’s billed as a kind of last Keynesian resort when ZIRP, NIRP, and QE have all failed to boost aggregate demand and juice inflation. For instance, HSBC […]
2008 Revisited?
2008 Revisited? NEW YORK – The question I am asked most often nowadays is this: Are we back to 2008 and another global financial crisis and recession? My answer is a straightforward no, but that the recent episode of global financial market turmoil is likely to be more serious than any period of volatility and […]
Where Negative Interest Rates Will Lead Us
WHERE NEGATIVE INTEREST RATES WILL LEAD US Despite zero-interest-rate-policy (ZIRP) and multiple quantitative easing programs — whereby the central bank buys large quantities of assets while leaving interest rates at practically zero — the world’s economies are stuck in the doldrums. The central banks’ only accomplishment seems to be an increase in public and private […]
Everything Changes At Zero
EVERYTHING CHANGES AT ZERO “Then said Jesus, “Father, forgive them; for they know not what they do.”” – Luke 23:34. For the benefit of non-subscribers, there are two versions of the Financial Times newspaper. One of them is the hard copy edition, still printed on pink paper, an exact digital replica of which is available on […]
Silver Linings: Keynesian Central Banking Is Heading For A Massive Repudiation
Silver Linings: Keynesian Central Banking Is Heading For A Massive Repudiation For several years now the small coterie of Keynesian academics and apparatchiks who have seized nearly absolute financial power through the Fed’s printing presses have justified the lunacy of unending ZIRP and massive QE on the grounds that there is too little inflation. The bureaucrats at the IMF […]
Death Throes Of The Bull
Death Throes Of The Bull The fast money and robo-machines keep trying to ignite stock rallies, but they all fizzle because bad karma is beginning to infect the casino. That is, apprehension is growing among whatever adults are left on Wall Street that 84 months of ZIRP and $3.5 trillion of Fed balance sheet expansion, aka money printing, […]
A Full Trunk Of Combustible Junk——The Wages Of ZIRP
A Full Trunk Of Combustible Junk——The Wages Of ZIRP Shuffling uncomfortably with paint brushes in hand in the tight monetary corner into which they have painted themselves, our monetary suzerains are about to demonstrate the folly of their seven-year stint of “extraordinary” policy accommodation. Even as ZIRP and QE have failed to rejuvenate the main street economy, they did trigger a far-reaching […]
The G-30 Group Of Central Bankers Warn They Can “No Longer Save The World”
The G-30 Group Of Central Bankers Warn They Can “No Longer Save The World” In a detailed report by the Group of Thirty, central bankers warned that ZIRP and money printing were not sufficient to revive economic growth and risked becoming semi-permanent measures. As Reuters reports, the flow of easy money has inflated asset prices like stocks and […]
The Mindless Stupidity of Negative Interest Rates
The Mindless Stupidity of Negative Interest Rates Here we are in the midst of The Great Stagnation Middle Class Elimination and some central bankers and mainstream economists are promoting negative interest rates. One economist was quoted in a Marketwatch piece by Greg Robb as saying, “…pushing rates into negative territory works in many ways just like […]
“Emerging Markets Are On The Verge Of Liquidation” Top Performing Hedge Fund Manager Warns; “QE4 Is Coming”
“Emerging Markets Are On The Verge Of Liquidation” Top Performing Hedge Fund Manager Warns; “QE4 Is Coming” Until recently, John Burbank’s Passport Capital was one of the top 15 performing hedge funds in 2015. Recent events have only led to an even higher YTD P&L making Burbank one of the top performing managers of 2015: […]
