japan

Economics Is Easy When You Don’t Have To Try

By |2018-12-07T16:18:46+00:00December 7th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The real question is why no one says anything. They can continue to make these grossly untrue, often contradictory statements without fear of having to explain themselves. Don’t even think about repercussions. Even in front of politicians ostensibly being there on behalf of the public, pedigree still matters more than results. It’s actually worse than [...]

The Obvious Politics of Downturn(s)

By |2018-11-14T17:35:14+00:00November 14th, 2018|Markets|

There was more than enough evidence that QE didn’t work fifteen years ago. The Japanese had accumulated these monetary experiments at the dawn of the 21st century. And there was even a time when US and Western central bankers were skeptical. What happened was 2008; a dislocation so big and widespread they had no choice [...]

BoJ On 2.3%: ‘the decline in the unemployment rate is insufficient’

By |2018-11-06T16:06:39+00:00November 6th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The 21st century central banker is a unicorn chaser. This has happened by default, a product of too little success despite ever-increasing interventions. In fact, the bigger these policy intrusions become the more likely it is the central bankers will attempt to turn something small into something big. It doesn’t matter that economies are noisy [...]

The Absurd Science

By |2018-11-01T18:24:15+00:00November 1st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Language is often said to be a living thing. Common everyday usage can and does introduce new words and changes the meaning of existing ones. But this is a gradual evolution, and rarely does the process leap ahead into more drastic alterations. Central bankers, however, are challenging such preconceptions. They write words that often have [...]

Bond Bull Bull

By |2018-10-30T22:45:02+00:00October 30th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On February 12, 1999, the Bank of Japan announced that it was going full zero. Japan’s central bank would from that day forward push the overnight uncollateralized lending (interbank) rate to the zero lower bound. Further, it pledged to keep it there until Japan’s economy recovered. The economic slump in the nineties had been by [...]

The Aid of TIC In Sorting Shorts and Shortages

By |2018-10-17T11:58:06+00:00October 17th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Asians are selling their Treasuries again, which can only mean one thing. The mainstream media will offer all sorts of explanations as to why that might be and not a single one will be correct. China and Japan are offloading US$ assets primarily federal government debt for vastly different reasons. Their decisions spring from [...]

China’s Nineties Fears, Not Just Japan

By |2018-10-05T13:01:34+00:00October 5th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The year 2012 was a turning point, there can be no doubts about that. At least not when objectively and honestly reviewing the data. Up until the worldwide slowdown that hit that year, starting the year before, 2011, in an “unexpected” flareup of global monetary crisis, the Great “Recession” was viewed as harsh, even prolonged. [...]