The Fed

The fear of deflation is a big problem for the future of the global economy.

We wouldn't expect much market reaction to today's announcement, as it was already expected and should have been priced in.

More and more, Fed appointees are dropping their apolitical facade.

Unfortunately for us, James Grant is right.

Why is the Fed holding so many secret meetings lately?

Congress is hardly a great steward of financial power, but there are benefits to wrestling control of the money supply away from the Fed and returning it to Congress.

Following the unconventional monetary policy of negative interest rates, central banks are now considering an even more desperate measure: "helicopter money."

Given the monetary dark arts being practiced around the world, I would much prefer my money in the hands of Gringotts goblin, than at the mercy of our Federal Reserve Chairman Who-Must-Not-Be-Named.

If helicopter money is implemented, those who first gain the use of the new money may benefit by increasing consumption before prices rise, while others will see prices rise before they are able or willing to use the money. But the end result will be higher prices but no overall increase in welfare. 

The Fed says it's scaling back its Quantitative Easing programs, but it still maintains a huge balance sheet. Unfortunately, the Fed has no plan to really unwind its massive QE programs, and has backed itself into a corner.