Benn Steil: Did Russia Really Dump Its U.S. Debt?
Russia dumped 84% of its American debt,” blared a July CNN headline. Russian central-bank head Elvira Nabiullina said the sales were just part of “diversifying the entire structure…
Read MoreSovereign Debt
The Benefits of Issuing Gold Bonds
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold. As I will explain below, it’s…
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Italy and the repricing of European government debt
The yield spread between 10yr BTPs and Bunds widened 114bp in May Populist and anti-EU politics were the catalyst for this repricing of…
Read MoreThe National Debt Limit Equals a Balanced Budget
Once again the United States government is rapidly approaching a fiscal debt ceiling: After March 16, 2017, Uncle Sam will not be legally allowed…
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Benn Steil: China’s Bond Market Can’t Handle a Global RMB
The Chinese RMB’s ascension into the IMF’s SDR currency basket in October has been widely seen as an important first step on its path to becoming…
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Trump’s economic plan runs the risk of severely derailing the US economy
Trump’s plan is what Keynes would have prescribed Most economic commentators such as a Nobel Laureate Paul Krugman should be delighted with the US…
Read MoreGeneration Snowflake clobbered, again
“Paul Krugman Says Markets Will ‘Never’ Recover From Trump; Dow Hits Record High” – Headline from The Daily Caller. “Experts who can guide…
Read MoreThe Looming Bubble in Long-Term Debt
In the aftermath of the financial crisis of 2007–2009, analysts and prognosticators have constantly argued over the next big bubble. Will it be in…
Read MoreChapter 7: Secrets, Ignorance and Lies: Money, Credit and Debt.
“The tyranny of fraud is not less oppressive than that of force.” John Taylor of Caroline, Virginia, 1814. Our system of money-creation…
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The Cozy Relationship between the Treasury and the Fed
Last year was a tough one for investors. Gold was down 10 percent. The Dow Industrials fell 2.5 percent, and most bond indexes finished…
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