fbpx

qqe

You Don’t Have To Take My Word For It About Eliminating QE

By |2021-10-20T19:33:04-04:00October 20th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

You don’t have to take my word for it. QE doesn’t work and it never has. That’s not just my assessment, pull out any chart of interest rates for wherever gets the misfortune of having been wasted with one of these LSAP’s. If none handy, then just read what officials and central bankers write about their own programs (or those [...]

August Avoids Zero In JGB’s

By |2021-09-27T18:56:35-04:00September 27th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Central banks and their staffs have long been accused of trying to hide inflation. This allegation had been a staple of their critics, those charging reckless monetary policies for creating “too much” money that had allegedly been causing price imbalances all over the financial map. The most famous example the Federal Reserve discontinuing M3 early in 2006 – just as [...]

Honestly Not Easy

By |2021-09-13T18:44:08-04:00September 13th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Central banking’s real monetary power comes from a different kind of printing. We’re all taught and told from the very beginning that it's derived from enjoying the money printer, the ability to stack currency at will. No. In actual fact, monetary policies are all money-less leaving “monetary” authorities to employ instead the press which prints words.Deciding which words, and more [...]

Global Inflation In Japan Does Not Speak German

By |2021-08-20T16:08:47-04:00August 20th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Being able to compare European inflation rates with their American counterparts helps expose what’s driving the latter and it’s not inflationary currency. Comparing both of those inflation regimes with the Japanese simply exposes the Bank of Japan and QE. This was perfectly obvious before the Base 2020 CPI estimates came about.Central banks, we’re always told, possess the printing press of [...]

The Vast Majority (not) Inflation Case

By |2021-05-20T20:01:32-04:00May 20th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Global factors. Both for inflation as well as money, in fact money therefore inflation. Only recently, yesterday, in fact, has the Federal Reserve pulled back the official curtain of silence and illiteracy if only a little to admit there’s so much more than what you’ve ever been told. Bank reserves aren’t the end of the story, especially in light of [...]

Another Hundred Trillion For The Library

By |2021-04-28T20:06:17-04:00April 28th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Words have meaning for a reason, to convey precise ideas easily and readily understood by the reader or listener. If you use the term “stimulus”, as its root already suggests you’d expect something to be stimulated by whatever is being classified using this specific grouping of letters/sounds. Context rounds out the meaning.For the last twenty years, you’d have been wrong [...]

Fragility (脆弱性)

By |2021-04-13T19:16:45-04:00April 13th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For a short while, with reflation being traded in almost every corner of the global bond market, the Bank of Japan started to get “those” questions again. Almost of the humble brag variety. A few years ago, Japan’s central bank had widened what it considered to be an acceptable trading range for its 2016 QQE addendum of Yield Curve Control [...]

Nine Percent of GDP Fiscal, Ha! Try Forty

By |2021-02-24T18:38:43-05:00February 24th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Fear of the ultra-inflationary aspects of fiscal overdrive. This is the current message, but according to what basis? Bigger is better, therefore if the last one didn’t work then the much larger next one absolutely will. So long as you forget there was a last one and when that prior version had been announced it was also given the same [...]

Already Tried: イールドカーブコントロール

By |2021-02-17T20:10:05-05:00February 17th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Aussies weren’t the first to drive into the YCC channel. That “honor” belonged instead where it always does: Japan. The Japanese had also pioneered yield curve control just like they had for practically every single element behind post-crisis monetary policy everywhere else around the world. It’s always a safe bet that if some central bank somewhere starts doing something [...]

Deflation Returns To Japan, Part 2

By |2020-11-20T19:23:16-05:00November 20th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Japan Finance Minister Taro Aso, who is also Deputy Prime Minister, caused a global stir of sorts back in early June when he appeared to express something like Japanese racial superiority at least with respect to how that country was handling the COVID pandemic. For a country with a population of more than 126 million, the case counts and mortality [...]

Go to Top