Category: Interest Rates
What We Learned From 2018…
After a week at the family farm, we had come back to the city for New Year’s Eve. But hardly had the new year begun when the echoes of the old year filled the streets and alleyways.
What Trump and Powell Do Next…
Well, we were wrong. We figured the Fed would pause now. Instead, it went ahead with its rate hike and suggested it would pause in 2019.
No Matter What the Fed Does, We All Lose
We were waiting for the big Fed announcement on a rate hike. But what happened? No trumpets. No bells. No heralds. None came.
It’s All a Gigantic Monopoly Game
If you have ever played Monopoly, you have probably noticed two things. The game can be really long and the banker — who pretty much controls the game — can never run out of money.
The Fed Has the Shakes
Central banks have no economic magic. No financial panaceas. No money miracles. They can’t really make an economy run better.
Good News About the Coming Crash
The last leaves are falling from the trees. And the last days of December are counting down, like the quiet moments before an execution.
The Debt Bomb That Could Blow in 2019
The Fed were planning to ‘normalise’ monetary policy very slowly. They didn’t expect much turbulence. The truth is that it’s not shaping out to be that way. Markets have been jolting all year.
How the Country Goes Broke…
Come the next crisis, our problems will intensify. Tax revenues will plummet. Deficits will grow to $2 trillion a year in 2019 or 2020.
What We Said to a Group of DC Elite
We have a bubble economy, not an economy on a solid footing of rising wages, productivity, sales, and profits. The boom we have enjoyed is largely fake.
More Fear Creeping into the Market
The Fed is looking at one more interest rate hike this year and three in 2019…or so they said. But investors aren’t buying it.
Dow 10,000
Trump will do whatever he can to keep prices rising on Wall Street — by talking up the economy with his usual mixture of real bravura and counterfeit facts.
Bargains on Offer as the Market Stumbles
Buying is back on the menu. In fact, investors haven’t been this giddy since the volatility shock in February earlier this year.
What Trump Will Say at the G20
The Fed’s big mistake following the 2008 crisis was holding interest rates down too low for too long. This discouraged saving and made debt more attractive.
This Occupancy Has Better Accuracy Than Central Bankers
Monetary policy is part art, part science. Central bankers don’t know what higher or lower interest rates will do. They have some idea. But they really don’t know for sure.
Investors Are Going to Get Scalped
The US dollar is fake money. And the Fed lends it out at fake rates. This is why corporate, consumer, and government debt is so high.