The Fed has built a financial pyramid based on unsustainable low rates. How the Fed is running out of economic curtains to hide behind when it comes to monetary policy.
The markets are pulling back dramatically because the Fed sneezed. The Fed essentially said they would begin tapering off their experiments in quantitative easing by pulling back their bond purchases from $85 billion a month to $65 billion. That is it. Not a shocking revelation. So why then are the markets plunging on this news? […]
Rationalizing and pushing the debt limit: The academic battle to open the gates on unlimited digital debt monetization.
One of the recent cases for the never ending expansion of debt purchases via central banks is the case of the Bank of Japan. The BoJ has essentially gone into hyper-drive with their version of quantitative easing by going straight into the Nikkei. The case seemed simple: the European Union mired in austerity measures has […]
Inflation by any other name – Central banks around the world increase balance sheets from $2 trillion in 2008 to $6 trillion in 2013. The slow erosion of purchasing power in the US.
The Federal Reserve has been trying with all its power to stoke inflation. This is not the stated mission and you will not hear this proclaimed over loud speakers but if actions speak louder than words, this is the policy they are following. Yet the Fed is picking winners and losers with their inflation targeting. […]
The dynamic central banking duo – ECB balance sheet up over €3.1 trillion mimicking Fed balance that is close to $3 trillion. Shuffling toxic assets into darkness.
You might have the vague memory that the European Central Bank reacted somewhat negatively to the Federal Reserve’s massive balance sheet expansion a few years ago. The ECB was not following in the same path as that of the Fed. Well fast forward to the current Euro crisis and the ECB now has a balance […]
The suffocation of unsustainable global debt – Total global debt is now over $190 trillion and more than three times global GDP. Contagion with European Union.
The biggest market in the world is the European Union and debt problems are still rippling through the global markets. It is apparent with the financial crisis that the global markets are tied together by large banks and interconnected trade. A problem in the largest market should be unsettling and the unemployment rate in the […]
U.S. Dollar Only Down 2 Percent for the Year. Since the Crisis Started in August of 2007, the U.S. Dollar is Unchanged. Yet the Dollar is Down 33 Percent Since the Start of the Decade. The Currency Race to the Bottom.
People have a hard time grasping that given the tumultuous market of 2009 and all the liquidity being funneled into the market by the U.S. Treasury and Federal Reserve, that the U.S. Dollar has only fallen 2 percent for the year. What is even more surprising to many is the U.S. Dollar has remained unchanged […]