Dr. StrangeYellen or: How I Learned To Stop Worrying And Love The Depression
The main policymaking body of the Federal Reserve, the FOMC, has had a tortured relationship with eurodollar futures during this past decade. As I chronicled here in greater detail, starting in early 2007 the committee [...]
Deeper Derivative Dive To Less ‘Dollar’
The Office of the Comptroller of the Currency won’t release its collection of bank call reporting for Q3 2016 until January. There is a great deal about the aggregate US bank derivative book in that [...]
Confirmation Through Petulance
Did CNY flash crash yesterday? That it is even being contemplated and argued is itself an indication of these times. According to pretty much all market data, CNY fell below 7.0 to the dollar just [...]
PBOC Is (Way) Behind, Not Ahead
There are usually ceteris paribus assumptions lurking behind every mistaken impression in economics, including monetary economics. If Central Bank X does Y, where Y is a plus sign it is believed to be “accommodation” or [...]
Different ‘Dollars’ To Different Places Are Really Just The Same ‘Dollar’ At Different Times
This is a repost; originally published on Dec. 22, 2016. On April 27, 2007, the People’s Bank of China announced that it was raising the statutory ratio for required reserves by 50 bps to 11%. [...]
RHINO
This is a repost; originally published Dec. 22, 2016. The federal funds rate target is essentially nothing more than a communication tool. You don’t have to take my word for it, the same conclusion has [...]
Economists Canada Problem (Con’t)
Canada’s economy remains the distinct enigma of the developed world, where the binary business cycle breakdown is perhaps most conspicuous. When oil prices first crashed to end 2014 and start 2015, even economists expected Canada’s [...]
Stay In Touch