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The Product of NIRP: Exposing Psuedo-Science

By |2016-08-24T16:07:11-04:00August 24th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It wasn’t the introduction of statistics that led to the dire state of “science”, rather it was the jettison of common sense in favor of, and the total deference to, statistics. This was not a single event or a clean break, of course, as it happened slowly over decades. But in the 21st century what is often talked about and [...]

Repo And Interbank Revelations

By |2015-04-24T16:18:59-04:00April 24th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

There was no third consecutive quarterly liquidity event on April 15, but I think there was an observation of the same systemic crack that just didn’t, this time, go anywhere. I have been highlighting repo rates particularly during April where GC rates failed to reset as they had done after every other quarterly window dressing. This time was already notable [...]

Currency Genocide; Or Let’s Kill It More

By |2015-04-20T15:54:49-04:00April 20th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

There is an irreconcilable tension that lies at the heart of every “extraordinary” monetary policy. It isn’t something that is talked about much, and in fact it is steadfastly avoided as if these were two distinct topics. Bringing them together amounts to “crossing the streams” (to use 1984-style metaphors) and tends to undermine the idea that in the most extreme [...]

Kill Debt to Make Debt

By |2015-03-20T16:56:01-04:00March 20th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

In the days before 2007, the idea of monetary “stimulus” was relatively straight-forward in theory as well as (seemingly) practice. A central bank declared that it would reduce an interest rate target and the “market” would respond by doing the work for it. In other words, all that was needed was an indication and banks would make it so as [...]

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