Jerome Powell wants everyone to know that he's read Paul Volcker's autobiography, "Keeping At It". He has used this phrase repeatedly since Jackson Hole, apparently believing that he needs to channel Mr. Volcker's gruff demeanor in order to get markets to do what he thinks they should do. He and others on the FOMC were not pleased with the stock [...]
To paraphrase the great man Michael Scott: I’m not superstitious but I’m a little stitious. Something like premature celebration, or not counting chickens before the embryos finish their time in their eggs. Don’t spike the ball at 5 yard line (let alone the 30). In January 2014, Central Banking magazine handed out its first annual awards. After a tumultuous few [...]
Sometimes it pays to wait. Better to be sure than premature. In January 2014, the journal Central Banking handed out its inaugural awards. Among the recipients was Paul Volcker who was bestowed a lifetime achievement prize. The initial Governor of the Year honorific, something like a central banker MVP, went to Mario Draghi of the ECB. He graciously accepted in [...]
The mainstream narrative as it relates to Chinese money is “tightening.” Having survived the economic downturn last year, we are to believe that the PBOC is once again on bubble duty. They raised their reverse repo rates, considered to be their policy benchmarks, three times up to mid-March. The central bank also increased the rate on its Medium Term Lending [...]
The PBOC’s balance sheet was relatively quiet in February, with no large moves on either side of its ledger. In fact, these minor shifts appeared to be more so adjustments than the more extreme efforts the central bank had become used to undertaking. The heavy lifting was accomplished in January at least as far was what is visible, leaving February’s [...]
Since October 15, gold, yen and Swiss francs have all been pummeled by what increasingly looks like a “dollar” repeat from the start of Q3. It is difficult to suggest whether there is any shift in safe haven bid in all three, but I would guess, as with Q3, it may not have mattered as the “dollar” function globally has [...]
By all count of orthodox economics, the harmonization of “inflation” rates across the US, Europe, and China should not happen. While the former two might be more forgiving given close economic ties, the assumed vast differences with the Chinese economic framework (particularly PBOC operations) should prevent what can only be observed as a highly contagious global environment. With China’s CPI [...]
Friday’s payroll malfunction makes a perfect backdrop for the latest Marxism revival. It has been a constant feature of this “recovery”, perfectly reflecting the labor realities of this “cycle” where financialism would be savaged from either end of the traditional political scale. As the tea party reflected the more libertarian, capitalist tradition against concentrations in banking and central planning, Occupy [...]
The relevant part about eurodollars these days is that the term itself is a misnomer, or at the very least not a comprehensive description. “Eurodollar” itself is not necessarily a dollar (or even “dollar”) that originates from Europe, though it has been European banks that have formed the backbone participation for decades. The word is shorthand for any “dollar” that [...]
It may be related or it may not, but the setup and decision by the Bank of England is far too close to the Federal Reserve to simply ignore or dismiss. While the FOMC added the word “some” to its policy statement at the last meeting to downgrade, really, its economic assessment, BoE accomplished much the same through different means. [...]
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