It’s understandable, even natural to focus on the amplitude of this or any BOND ROUT!!! and make comparisons to past reflationary trends on that basis alone. But what about frequency? By that, I don’t mean how frequently reflation shows up, though it has been fairly regularly if only because we never get any of that inflation and recovery predicted during [...]
According to the Federal Reserve’s latest balance sheet update (to last Wednesday, Feb 24), its remainder balance of bank reserves declined a touch from the week before. That week, Feb 17, had seen aggregate reserves rise to a record high of $3.38 trillion. These reserves are utterly abundant, no arguing that, but what does this mean?The other part of this [...]
The offside of “synchronized” is pretty obvious when you consider all possibilities. In economic terms, synchronized growth would mean if the bulk of the economy starts moving forward, we’d expect the rest to follow with only a slight lag. That’s the upside of harmonized systems, the period everyone hopes and cheers for. What happens, however, when it’s the leaders rather [...]
Nevada is, by all accounts and accountants, in rough shape. Very rough shape. An economy overly dependent upon a single industry, tourism, in this case, is a disaster waiting to happen should anything happen to that industry. Pandemic restrictions, for instance.Nevadans cannot afford the government spending they “have” without a gaming industry attracting visitors at full throttle. Desperate, the state’s [...]
Tomorrow represents the 6-month mark for the Treasury market. On August 4, 2020, nominal benchmark 10-year yields declined to their absolute closing lows. Over the half-year since, rates have generally been on the rise which should be a long enough period by which to categorize our interpretations of what it all means.Most mainstream commentary places any upward trend (of any [...]
Was it all mere window dressing? A con pulled by cunning Communists who needed to secure the collateral security of an intended transition toward the opposite direction? What a difference a few years makes, then, given how when Xi Jinping began his term in 2012 the word most in the West used to describe his agenda was “reform.” Every strongman [...]
The people who believe they are the Federal Reserve’s biggest critics are actually Jay Powell’s most vocal supporters right now. Rather than being bothered by all the “Weimar” memes and printer-go-brrrrr jokes, US central bank officials welcome such free press (pun intended). Anything that contributes to the idea there will be inflation – a little or a ton – helps [...]
Lehman Brothers was a cultural marker, the kind of thing that sticks for generations because of all the wrong reasons. Hardly anyone had heard of the investment bank throughout its unbelievably long history stretching back to the middle of the 1840’s (yes, eighteen forties). But being near the center of a multi-generational breakdown causing as yet-untold damage and misery extending [...]
There is a lot of evidence which shows some basis for expectations-based monetary policy. Much of what becomes a recession or worse is due to the psychological impacts upon businesses (who invest and hire) as well as workers being consumers (who earn and then spend). Once the snowball of macro contraction begins rolling downhill, rational prudence dictates some degree of [...]
I’m not exactly sure how you translate the English word “hope” into Chinese, though Google’s translate algo tells me this is what it’d be: 希望. For the global economy to have any chance of just making next year less awful than it’s already predicted to be (by the optimists), the OECD declared China essential to the fanciful anticipation.As noted before, [...]
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