The fact that the most conservative investors are being forced to purchase bonds of nearly bankrupt companies for virtually no yield is not a success of monetary policy nor a tool for growth.
The market probably interprets correctly that the European Central Bank will become even more dovish under Lagarde. This will encourage more risk in the financial system.
Since Libra is an extended arm of the current financial system, first-world economies could benefit at the cost of developing economies.
A major factor that can explain the apparent contradiction between weakening so-called fundamentals of today — and the stock market's continued march upward — is changes in monetary liquidity.
Increased velocity of circulation is not, in itself, a contributing cause of higher commodity prices. It is not even a link in the chain of causation.
Contrary to popular thinking, the velocity of money does not have a life of its own.
Vikram Mansharamani’s second edition of Boombustology: Spotting Financial Bubbles Before They Burst has all the great insights from the first edition plus a foreword by James Grant.
Skidelsky manifests an inordinate distaste for money and “greed.” Far better in his eyes is the pursuit of power by the State, even at the cost of wars and massive public debt. Some of us will not agree.
Unlike Greece, Italy or other seriously debt-laden economies, it’s not just government borrowing that’s the main risk to Turkey.
It is not easy to change the failed policies of the Kirchner era without recognizing the enormous monetary and fiscal hole created by the previous administration.
