Category Archive: Monetary Policy

Main Author George Dorgan
George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.

Negative Rates and The War On Cash, Part 1: “There Is Nowhere To Go But Down”

As momentum builds in the developing deflationary spiral, we are seeing increasingly desperate measures to keep the global credit ponzi scheme from its inevitable conclusion. Credit bubbles are dynamic — they must grow continually or implode — hence...

Finland Unleashes Helicopter Money In “Greatest Societal Transformation Of Our Time”

Finland is about to launch an experiment in which a randomly selected group of 2,000–3,000 citizens already on unemployment benefits will begin to receive a monthly basic income of 560 euros (approx. $600). That basic income will replace their existing...

Yellen on negative rates: we do not speak its name

Janet Yellen opened the festivities at this year’s Jackson Hole economic symposium by musing on what central bankers had learned since the crisis and how they can deal with future recessions in a world where interest rates are far lower than in the...

‘Last Economist Standing’ John Taylor Urges “Less Weird Policy” At Jackson Hole

I attended the first monetary-policy conference there in 1982, and I may be the only person to attend both the 1st and the 35th. I know the Tetons will still be there, but virtually everything else will be different. As the Wall Street Journal front...

Incrementum Advisory Board Meeting, July 2016

The quarterly meeting of the Incrementum Fund’s advisory board was held on July 19. A pdf transcript of the discussion can be downloaded via the link below. We were once again joined by special guest Brent Johnson, the CEO of Santiago Capital. One...

Two More Banks Start Charging Select Clients For Holding Cash

Bank of Ireland, which is 14% owned by the State, has informed its large corporate and institutional customers that it plans to charge them a negative rate of -0.1% for deposits of €10 million or more starting in October.

Negative Consumer Financing Rates in Germany, Soon More Negative in Switzerland?

Things are increasingly upside down in the brave new centrally planned world: thanks to negative deposit rates central banks have put an explicit cost on saving, while in various instances, such as taking out a mortgage in Denmark and the Netherlands,...

The Helicopter Mortgage

Medical vs. Financial Engineering. I broke my elbow a month ago, pretty badly as I was told. The surgeon screwed the pieces back together, using a steel alloy bracket and six screws. Two hours later, I left the hospital with no cast, a bandage (just to...

Richard Koo: If Helicopter Money Succeeds, It Will Lead To 1,500 percent Inflation

After today's uneventful Fed announcement, all eyes turn to the BOJ where many anticipate some form of "helicopter money" is about to be unveiled in Japan by the world's most experimental central bank. However, as Nomura's Richard Koo warns, central...

A Nation of Crooks?

Apples to Oranges. PARIS – The stock market seemed chilled last week, like a corpse waiting for an autopsy. Monday morning, gold was falling in Europe… as investors anticipate a higher dollar. But we’ll return to the markets, the dollar and the...

Return is “not really a function of yield”

When x happens, yields fall — Rule 1? It’s not a search for yield, it’s a search for safety — Potential Rule 2? Two charts to make the point for us once again from the good folks at BofAML’s relative value department:

Unsound Money Has Destroyed the Middle Class

DUBLIN – When you start thinking about what money is and how it works, you face isolation, shunning, and possible incarceration. The subject is so slippery – like a bead of mercury on a granite counter top – you become frustrated… and then… maniacal....

More Signs the End is Nigh

Hyperventilating Minds “What has been will be again, what has been done will be done again; there is nothing new under the sun,” explained Solomon in Ecclesiastes, nearly 3,000 years ago. Perhaps the advent of negative yielding debt would have been...

It’s a negative yielding world, we just get to scramble in it

Here’s a rough piece of calculation based on the last few years of news: When x happens, yields fall. An example of this post-GFC rule-of-thumb was Brexit and its fallout.

The Central Planning Virus Mutates

Readers are probably aware of recent events in Japan, the global laboratory for interventionist experiments. The theories of assorted fiscal and monetary cranks have been implemented in spades for more than a quarter of a century in the country, to...

“It’s Prohibited By Law” – A Problem Emerges For Japan’s “Helicopter Money” Plans

Over the past four days, risk assets have been on a tear, led by the collapsing Yen and soaring Nikkei, as the market has digested daily news that - as we predicted last week - Bernanke has been urging Japan to become the first developed country to...

Stockman Rages: Ben Bernanke Is “The Most Dangerous Man Walking This Planet”

Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary ruin. At least since 2002 he has been talking about “helicopter money” as if a notion...

Going Dutch? Netherlands Joins The 10Y NIRP Club

For the first time in Dutch history, 10Y government bond yields have turned negative (-0.001% intraday) closing at 0.00%... Joining Switzerland, Japan, Germany, and Denmark... Pushing Global NIRP bonds over the $13 trillion!

When the Deep State Controls All Wealth

The feds got out the knife in 1971. They changed the money system itself. They severed the link between gold and the dollar – and between value and price. It was so subtle almost no one objected… and so clever almost no one saw what it really meant. It...

BofA: To Save Markets Central Banks Just Made Inequality And Populism Even Worse

There is a large dose of irony to the post-Brexit market response: while on one hand stocks have soared and as of today the S&P500 has already recouped more than half its post-Brexit losses (the SPX sank 5.7% peak-to-trough since the referendum and has...