Currently viewing the tag: "Federal Reserve"
While the stance of monetary policy around the world has, on any conceivable measure, been extreme, by which I mean unprecedentedly accommodative, the question of whether such a policy is indeed sensible and rationale has not been asked much of late. By rational I simply mean the following: Is this policy likely to deliver what [...]
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The lesson from the events of 2007-2008 should have been clear: Boosting GDP with loose money – as the Greenspan Fed did repeatedly between 1987 and 2005 and most damagingly between 2001 and 2005 when in order to shorten a minor recession it inflated a massive housing bubble – can only lead to short term [...]
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The purpose of this essay is to put the latest crisis in the context of longer-term debt trends in the US and to attempt some predictions in respect to the US economy and financial markets. Statistics are records of past events. Analyzing statistics means interpreting history, and this can only be done on the basis [...]
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The publication, earlier this week, of the Federal Reserve’s Federal Open Market Committee minutes of January 29-30 seemed to have a similar effect on equity markets as a call from room service to a Las Vegas hotel suite, informing the partying high-rollers that the hotel might be running out of Cristal Champagne. Around the world, [...]
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Under President Obama the debt of the United States government has grown by about 50%, and now stands at close to $16 trillion. Every year, the US government spends between $1.2 and $1.5 trillion more than it takes in. Every day that financial markets are open the US government has to borrow an additional $4 [...]
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“But there is no inflation!” – This is a statement I hear quite often, sometimes from people who are, in principle, sympathetic to my arguments, sometimes from people who are less so. In either case, those who state “but there is no inflation” consider it to be a statement of fact and one that they [...]
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Excerpt from The Keiser Report (E346) with Max Keiser and Stacy Herbert on which Detlev appeared on September 27th. “Max talks to Detlev Schlichter, author of Paper Money Collapse about quantitative easing to infinity, Central Banking ‘devils’ and the future for the gold standard.”
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In a truly remarkable piece for the Financial Times yesterday, Wolfgang Münchau took another swipe at the Euro-sceptic and ECB-critical community in Germany, which he accuses of inflation-paranoia and of simply not getting ‘modern central banking’. Well, I know of many qualified commentators – many non-German – who swallow a tad harder when reflecting on [...]
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There was a beautiful symmetry to last week’s policy announcement by the Fed. Precisely a week after the ECB had pledged its commitment to unlimited purchases of Euro Zone government bonds, the Fed declared that its new round of debt monetization – ‘quantitative easing’ or QE3 – would be open-ended. Unlimited, open-ended. The concept of [...]
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I am not holding my breath over the Republicans’ plans for another gold commission to investigate the possibility of returning the USA to a gold standard in the case of the Romney-Ryan ticket winning. Of course, I like the Classical Gold Standard, which existed from about 1880 to 1914, and I am convinced it was [...]
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{ You raise some very good points that go slightly beyond what I was trying to... } – May 20, 9:47 AM
{ Interesting post. That said, and I don't mean to be disrespectful, I don't think it... } – May 20, 12:49 AM
{ How's that prediction turn out for ya? } – May 17, 4:53 PM
{ It is simple. Everyone should be free to choose as money whatever they want. No... } – May 11, 2:11 PM
