Yes, another blog post on the Fed’s failed monetary policy. I hate to keep blogging on this particular issue, but it continues to be the major economic issue facing us. Now that the effects of the easy credit bubble deflating are becoming apparent to everyone, including famed corporate takeover investor Carl Icahn, the IMF is […]
Archives
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International Monetary Fund warns on the bubble they encouraged! But has the horse already left the barn?
30 Sep 2015
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In Fed We Trust!
16 Sep 2015
Tomorrow the Fed will announce its decision on whether to increase interest rates for the first time since 2006, and the markets seem to be thinking we’ve got at least another meeting until it happens. Markets are up in the last couple of days and even long-beaten gold is catching a bid, sensing that interest […]
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Boom Boom! Bust?! What’s next for world markets?
23 Aug 2015
Lots of press the last few days on the markets crashing, with the first stock market correction since 2011. I’ve been warning that this won’t end well, but that doesn’t mean I have the answer to what happens next–if I did I would be making the trades first thing tomorrow to profit from it myself. […]
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One of the joys of teaching economics is pointing out the foolishness of poor economic choices. It is precisely by showing the linkage between cause and effect and demonstrating unintended consequences that helps students understand “the economic way of thinking.” As a monetary economist, there is perhaps no better visual aid than passing around an […]
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Update on Trade Deal: Senate agreement gives new life with separate “currency manipulator” bill
14 May 2015
The WSJ reports today that a day after the Democrats in the Senate repudiated Mr. Obama, the Senate agreed to allow a vote on Trade Promotion Authority (TPA), once the Republican leadership agreed to allow a vote to force the administration to punish “unfair” trade in the form of currency manipulation. The concern have over […]
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Former Vice Chairman of the Federal Reserve board joined the chorus of Wall Street cheerleaders saying the Fed can afford to be patient with raising interest rates earlier this week. His rationale? Inflation as measured by the consumer price index or the Fed’s favored measure is very low: The so-called hawks, who have been calling […]
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You’ve heard me say this before (but not this strongly) that the monetary machinations of the global central banks (led by the Fed, and buttressed by the European Central Bank and the Bank of Japan) are flooding the world with liquidity and causing all sorts of malinvestment. In the video above, Ed Yardeni agrees, perhaps […]
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Economics Everywhere! Keynesian failure in Japan, ECB money printing and Walmart wage hikes!
21 Feb 2015
First up is the ongoing failure of Keynesian economics with its calls for government stimulus to save the day. Japan is the case study for looking at what government policy makers have done. Ever since their stock bubble burst (enabled by easy money policy) in the late 80s, the Japanese economy has went from one period […]
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I hate to be such a broken record on the subject of why deflation isn’t necessarily bad, such as this post from a few weeks back. But I do it because this very wrong-headed fear leads to utter disaster. For example, a big reason for Mr. Bernanke and Mr. Greenspan pushing the U.S. to negative […]
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World monetary system disorder reigns
16 Jan 2015
Yesterday the markets were stunned when the Swiss National Bank reversed its official policy of pegging the value of the Swiss Franc against the Euro. The value of the Franc vs. the Euro spiked 30% higher virtually immediately; much-maligned gold was up over $20/oz. Today reports are coming out of several large bankruptcies associated with […]
Bert Wheeler
Jeff Haymond
Marc Clauson
Mark Caleb Smith
Tom Mach