You don’t have to take my word for it. QE doesn’t work and it never has. That’s not just my assessment, pull out any chart of interest rates for wherever gets the misfortune of having been wasted with one of these LSAP’s. If none handy, then just read what officials and central bankers write about their own programs (or those [...]
The Chinese yuan had traded in a curiously narrow range ever since mid-June. Stuck, it seemed, between 6.50 at the bottom and around 6.45 ceiling, the lack of movement in either direction raised suspicions of concerted official effort. China’s officials, obviously, certainly not those from the Federal Reserve who spend all their time scouring drug reports and benefits cliffs so [...]
There was never really any answer given by the Chinese Communists for why their own export data diverged so much from other import estimates gathered by its largest trading partners. Ostensibly different sides of the same thing, it’s not like anyone asked Xi Jinping to weigh in; they report what numbers they have and consider them authoritative.However, the United States’ [...]
Forgotten now, overridden by the arrival of the coronavirus, Germany’s economy was already well into recession before COVID. Quite a long time before. It wasn’t an earth-shattering collapse reaching downward to an incredible depth, that became the later effect of overreacting to the pandemic. We will simply never know what that prior contraction would have looked like, and how bad [...]
Because it’s what you don’t see that ultimately matters, the public is left entirely in the dark unable to join what really should be easy dots to connect. Something is wrong, and pretty much everyone acknowledges this if in their own way. We can see the social and political disintegration before our very eyes, the anger, the “revolution”, even the [...]
An integrated circuit (IC) is a set of electronic circuits put together on one small, flat semiconductor medium. We call this thing a chip, and it is essential for so much of what we do in the modern computerized, digital world. Manufacturers can’t even produce cars without them.It stands to reason, then, that any shortfall or hitch in the availability [...]
Eurodollar, not Evergrande. That wasn’t just the point of yesterday’s recall, it is the whole point of beyond fourteen years of going only the wrong way. The deflationary way. Defaults in China are nowadays a commonplace part of that trend, one which began early in 2014 with Shanghai Chaori Solar.What was significant about Chaori was this: “It was the moment [...]
The first seeds of the eventual eurodollar bloom, in domestic US terms, were sown all way back in sixteen – as in the year 1916. Believe it or not, the Federal Reserve Act, then only a few years old, had been modified so that banking syndicates (those able to raise the princely sum of $1 million capital) could form what [...]
The American people were first introduced to the Treasury helicopter in 2008, not 2021. The Bush Administration's “radical” approach to keeping the Great “Recession” from becoming a contraction, obviously, failed spectacularly even though the initial returns had been positive – literally positive in how Q2 ’08 GDP suddenly turned higher as if this was by skilled design. Economists, including those [...]
The dollar stopped falling on January 6, beginning a reversal which has lasted more than eight months. This forewarning was joined two days later when TIPS breakevens crossed, inverting the 5-year when compared to the 10-year. About a week after that, T-bills.In other words, as I had written up last week, there actually were quite a few contrary indications in [...]
Stay In Touch