There’s Nothing New in the World
Everything that can happen in economics has already happened. The Fed’s idea to buy commercial paper is not new (via the WSJ): This technique was employed successfully by the Bank of England when it...
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Confessions Of A Gloomy Gus
I have recently been accused of being a paid up member of the gloom and doom club. Well, actually accused might be too strong; informed is probably more accurate. I don’t spend a lot of time thinking...
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The Financial End, Big Picture of Further Behind
You have to wonder, given the circumstances today, if there is such a thing as a perpetual Minsky phase. The Minsky moment was first theorized as a point in the “cycle” in which borrowers, lustily...
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More Dollar Clarity
There would be a lot more use for the Treasury Dept’s TIC flows and holdings data if it was released closer to real time, but even with that evident staleness about it I think there is a lot of use in...
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Monetary Death by Proxy
The European mess is coming more into view, and in almost every case that is a negative outcome. There really isn’t much going right in Europe right now, belying everything that was said, done or...
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What Is A Dollar?
We all have our own conceptions about money, as in many respects it is and should be deeply personal. Most people pay it little mind as all that matters is if our cars can be filled with gasoline and...
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Japan Proving The Monetary Black Hole
Japanese household spending increased 5.5% in nominal terms in May; 4.8% in real spending growth. That was the first monthly increase since November and since it was a positive number, and not as...
View ArticleHigh Costs Here Too
On January 15, the Swiss National Bank suddenly and without warning removed the franc’s peg to the euro. Months later, there is still much confusion as to why they acted, including some of the usual...
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Central Banking Isn’t What It Used To Be; Or Is It?
It may be related or it may not, but the setup and decision by the Bank of England is far too close to the Federal Reserve to simply ignore or dismiss. While the FOMC added the word “some” to its...
View ArticleTroubled History For Depending On The Fed To Save The ‘Dollar’
The relevant part about eurodollars these days is that the term itself is a misnomer, or at the very least not a comprehensive description. “Eurodollar” itself is not necessarily a dollar (or even...
View ArticleDeprived of Opportunity Now, Some Wish To Rediscover Slavery And Only Voters...
Friday’s payroll malfunction makes a perfect backdrop for the latest Marxism revival. It has been a constant feature of this “recovery”, perfectly reflecting the labor realities of this “cycle” where...
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No Country For Old Dogma
By all count of orthodox economics, the harmonization of “inflation” rates across the US, Europe, and China should not happen. While the former two might be more forgiving given close economic ties,...
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There’s Much in the Swiss
Since October 15, gold, yen and Swiss francs have all been pummeled by what increasingly looks like a “dollar” repeat from the start of Q3. It is difficult to suggest whether there is any shift in safe...
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The Remarkable Inferences About the PBOC’s Unremarkable February Balance Sheet
The PBOC’s balance sheet was relatively quiet in February, with no large moves on either side of its ledger. In fact, these minor shifts appeared to be more so adjustments than the more extreme efforts...
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Big Difference Mechanical Tightening
The mainstream narrative as it relates to Chinese money is “tightening.” Having survived the economic downturn last year, we are to believe that the PBOC is once again on bubble duty. They raised their...
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How To Totally Misinterpret Deflationary Impulses
Sometimes it pays to wait. Better to be sure than premature. In January 2014, the journal Central Banking handed out its inaugural awards. Among the recipients was Paul Volcker who was bestowed a...
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Japan Proving The Monetary Black Hole
Japanese household spending increased 5.5% in nominal terms in May; 4.8% in real spending growth. That was the first monthly increase since November and since it was a positive number, and not as...
View ArticleHigh Costs Here Too
On January 15, the Swiss National Bank suddenly and without warning removed the franc’s peg to the euro. Months later, there is still much confusion as to why they acted, including some of the usual...
View ArticleClik here to view.
Central Banking Isn’t What It Used To Be; Or Is It?
It may be related or it may not, but the setup and decision by the Bank of England is far too close to the Federal Reserve to simply ignore or dismiss. While the FOMC added the word “some” to its...
View ArticleTroubled History For Depending On The Fed To Save The ‘Dollar’
The relevant part about eurodollars these days is that the term itself is a misnomer, or at the very least not a comprehensive description. “Eurodollar” itself is not necessarily a dollar (or even...
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