Central Bank balance sheet adjustment – a path to enlightenment?
byCentral Bank balance sheet adjustment – a path to enlightenment? The balance sheets of the big four Central Banks reached $18.4bln last month The…
Economics
ECOFLASH: Economy may force the Fed to reverse its interest rate stance
byThe Fed hiked interest rates for the second time this year, in a widely expected move on Wednesday June 14. The Federal Reserve’s Open Market…
Zero Hedge: Goldman: The Fed Will Hike This Week, But Here Are “The Two Most Interesting Questions”
byOn Wedensday the FOMC will hike rates by another 25 bps – an event which the Fed Funds market prices in with near virtual…
The NAIRU (Non-Accelerating Inflation Rate of Unemployment) with Multiple Monies
byThe Nonaccelerating Inflation Rate of Unemployment (NAIRU) is the lowest rate of unemployment at which the inflation rate will not increase because, if it…
Zero Hedge: The ECB Has Almost Run Out Of German Bonds To Buy
bySource: http://www.zerohedge.com/news/2017-06-06/ecb-has-almost-run-out-eligible-german-bonds-buy One month ago, when looking at the sudden change in ECB bond purchasing patterns, especially of German Bunds, we reported that the central…
How Long Can the Fed Keep the Boom Going?
byThe US bond market trades at a quite high valuation. For instance, the 10-year US Treasury bond presents a price earnings (PE) ratio of…
Debts, Bastiat and modern economics
byThere is a well-worn conundrum told about a stranger, who walks into the hotel in a remote, sleepy village in Mexico, and reserves a…
The importance of randomness
byThe greatest strength of a truly free market economy, where money is sound and does not corrupt prices, is the absence of cyclical action….
The World’s Central Banks Are Frozen with Fear
byBy Ryan McMaken 2016 was supposed to be the year that the Federal Reserve “normalized” its policies. As much as two years ago —…
Trade Deficits Don’t Matter – Unless Caused by Government
byIn 2016, the United States exported goods and services equal to $2.209 trillion, and imported goods and services with a market value of $2.712…