Financial Markets

Displaying 31 - 40 of 861

The Fed's Balance Sheet May Be Headed to $40–$50 Trillion

The FedFinancial MarketsTaxes and Spending

Blog10/30/2020

If the current thinking continues, the world’s central banks will buy whatever paper governments issue. The result by the end of the decade will be a Federal Reserve balance sheet totaling $40 to $50 trillion. 

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Should Investors Focus on Risk Rather Than Profit?

Financial Markets

Blog09/25/2020

The stock market does not have a life of its own. In a relatively free economy, success or failure of investment in stocks depends ultimately on the same factors that determine success or failure of any business.  

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Abenomics: Big Debts with Nothing to Show for It

Financial MarketsMonetary PolicyWorld History

Blog09/24/2020

Japan's government is now addicted to easy money Abenomics. With Abe now gone, the next leader might tinker around with altered approaches, but it will be more of the same.

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The US Dollar Collapse Is Greatly Exaggerated

Financial MarketsGlobal Economy

Blog09/14/2020

The United States currency has only really weakened relative to the yen and the euro, but that depends on optimistic expectations of a European and Japanese economic recovery.

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Bankruptcies Rise Despite Trillions in New Liquidity

Booms and BustsInflationFinancial Markets

Blog09/07/2020

Liquidity only disguises risk; it does not resolve solvency issues driven by collapsing cash flows while costs remain elevated.

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Monetary and Fiscal Sorcery Make Home Price Magic

Booms and BustsFinancial Markets

Blog09/03/2020

Just how is this magic created? The spurring of demand in the midst of a covid-created depression. The wizards at the Fed and Treasury have created an intoxicating frothy brew for stock and home buyers alike.

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How Fear and Uncertainty Drives Demand for Gold

InflationFinancial Markets

Blog08/19/2020

Demand for gold tends to increase as faith in government and government intervention in the economy declines.

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As the Bubble Slowly Pops, the Economic Chain Reaction Is Now in Progress

Booms and BustsFinancial MarketsPrice Controls

Blog08/18/2020

Our high levels of malinvestment mean that negative interest rates will not have the steroidal effect that's hoped for. But they will deliver another few years of subpar debt-fueled economic activity.

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The Debt-Inflation Spiral Is Driving up the Demand for Gold

Central BanksFinancial MarketsMoney and Banking

Blog08/15/2020

It is often claimed that inflation reduces the true burden of debt. This is true for existing debt, but those who advocate it as a remedy for government indebtedness fail to understand that it also increases the cost of the government’s future debt.

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Are Negative Rates a Natural Historical Development?

Financial MarketsInterventionism

Blog08/12/2020

Central bankers are saying two things at once. First, they say that negative interest rates are a natural historical development. But then they say negative rates are an essential tool central banks are using to manipulate the economy.

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