Tag Archive: Monetary Policy

Fed Suppression, Long Term Economic Repression

2016-05-19

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2016-05-19

The Federal Reserve really wants to raise rates, but they do not dare as the consequence of interrupting an unprecedented level of capital misallocation is too grave to face head on. So our money masters continue their low interest rate policy; pulli...

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The Twilight Of The Gods (aka Central Bankers)

2016-05-10

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2016-05-10

The current financial market volatility increasingly reflects loss of faith in policy makers. Celebrity central bankers are learning that they must constantly produce new miracles for their followers.

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St. Louis Fed Slams Draghi, Kuroda – “Negative Rates Are Taxes In Sheep’s Clothing”

2016-05-09

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2016-05-09

"At the end of the day, negative interest rates are taxes in sheep’s clothing. Few economists would ever claim that raising taxes on households will stimulate spending. So why would they think negative interest rates will?" Those are the shocking wor...

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Futures Ignore Apple Plunge; Oil Rises Above $45 As Yellen Looms

2016-04-27

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2016-04-27

For those who thought that the world's biggest company losing over $40 billion in market cap in an instant on disappointing Apple earnings, would have been sufficient to put a dent in US equity futures, we have some disappointing news: with just over...

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A Take On How Negative Interest Rates Hurt Banks That You Will Not See Anywhere Else

2016-04-14

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2016-04-14

The Bank of Japan and the ECB are assisting me in teaching the world's savers, banking clients and corporations about the benefits of blockchain-based finance for the masses. How? Today, the Wall Street Journal published "Negative Rates: How One Swis...

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Bank Of America Reveals “The Next Big Trade”

2016-04-14

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2016-04-14

Markets have stopped focusing on what central banks are doing and are "positioning for what they believe central banks may or may not do," according to BofA's Athanasios Vamvakidis as he tells FX traders to "prepare to fight the central banks," as th...

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Futures Jump On Chinese Trade Data; Oil Declines; Global Stocks Turn Green For 2016

2016-04-13

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2016-04-13

With oil losing some of its euphoric oomph overnight, following the API report of a surge in US oil inventories, and a subsequent report that Iran's oil minister would skip the Doha OPEC meeting altogether, the global stock rally needed another catal...

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The SNB and the Forex Rigging Irony

While Forex banks, traders, and other institutions are being blamed for market rigging, the Swiss National Bank can publish reports about its own market rigging, but instead of being a scandal, it's economic data.  That's because the vast majority do...

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Swiss National Bank Admits It Spent $470 Billion On Currency Manipulation Since 2010

2016-03-24

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2016-03-24

By now it is common knowledge that when it comes to massive, taxpayer-backed hedge funds, few are quite as big as the Swiss National Bank, whose roughly $100 billion in equity holdings have been extensively profiled on these pages, including its woef...

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Another Fed “Policy Error”? Dollar And Yields Tumble, Stocks Slide, Gold Jumps

2016-03-17

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2016-03-17

Yesterday when summarizing the Fed's action we said that in its latest dovish announcement which has sent the USD to a five month low, the Fed clearly sided with China which desperately wants a weaker dollar to which it is pegged (reflected promptly ...

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Central Banks Shiny New Tool: Cash-Escape-Inhibitors

2016-02-29

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2016-02-29

Submitted by JP Koning via Moneyness blog, Negative interests rates are the shiny new thing that everyone wants to talk about. I hate to ruin a good plot line, but they're actually kind of boring; just conventional monetary policy except in negative ...

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HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior

2016-02-27

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2016-02-27

In many ways, 2016 has been the year that the world woke up to how far down Krugman’s rabbit hole (trademark) DM central bankers have plunged in a largely futile effort to resuscitate global growth. For whatever reason, Haruhiko Kuroda’s move into NI...

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Are Central Banks Setting Each Other Up?

2016-02-22

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2016-02-22

Authored by Mark St.Cyr, There are times you try to connect the dots. There are others where those connections warrant adorning your trusted tin-foiled cap of choice; for you just can’t get there unless you do. This I believe is one of those time...

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The Chinese Yuan Countdown Is On

2016-02-13

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2016-02-13

Submitted by SaxoBank's Dembik Christopher via TradingFloor.com, Currency stability is a prerequisite for China's economic transition Defending the yuan is prohibitively expensive – China cannot beat the market Progressive devaluation managed by PBoC...

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“Time To Panic”? Nigeria Begs World Bank For Massive Loan As Dollar Reserves Dry Up

2016-01-31

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2016-01-31

Having urged "don't panic" just 4 short months ago, it appears Nigeria just did just that as the global dollar short squeeze forces the eight-month-old government of President Muhammadu Buhari to beg The World Bank and African Development Bank for $3...

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BoJ Adopts Negative Interest Rates, Fails To Increase QE

2016-01-29

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2016-01-29

Well that did not last long. After initial exuberance over The BoJ's wishy-washy decision to adopt a 3-tiered rate policy including NIRP, markets have realized that without further asset purchases (which were maintained at the current pace), there is...

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The Bull Market in Stocks May Be Done

It’s the rude furry fellow’s turn to shred the illusion.
The great stock bull market is, perhaps, done. To most people, a bull market is good, and its end is bad. After all, a rising market signifies a healthy economy. Investors are making money. Share prices are connected to business productivity, aren’t they?

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Nigerian Currency Collapses After Central Bank Halts Dollar Sales To Stall “Hyperinflation Monster”

2016-01-12

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2016-01-12

Having told banks and investors "don't panic" in September, amid spiking interbank lending rates and surging default/devaluation risks, it appears the massive shortage of dollars that we warned about in December has washed tsunami-like ashore in oil-...

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Falling Yields, Rising Asset Prices -Rising Yields,Falling Prices

Our paper currency causes falling productivity, though not in terms of bushels per acre. What falls is productivity per dollar or euro of savings. This is the real meaning of the falling interest rate. When the rate was 10 percent, $1,000 of principal produced $100 of return. When it falls to two percent, then the same capital generates a return of only $20. Now with the Swiss 10-year bond, CHF 1,000 earns only CHF 1.3. Keith Weiner argues that one...

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