Monthly Archive:: July 2010

Fed Bullard

It’s not just him, the all say ‘quantitative easing’ will ‘work’ when they should now have enough evidence and theory to know all it does is lower interest rates which are already plenty low with regards encouraging lending. Might just be managing expectations but more likely they still actually believe it. *DJ ...Read More


Karim writes: Bullard Definitely out there on his own. FRB would certainly not communicate policy shift through him Also, everyone has different reasons why QE works. Most of the Fed leadership thinks just via interest rate channel and announcement effect. Bullard thinks through monetary channel, which makes him a minority. GDP Data: ...Read More

EU Daily | Europe Economic Confidence Rises as Exports Improve

It’s off to the races for a while in the euro zone as the adjustment that began when the ECB started buying member nation debt continues, and the still large budget deficits support incomes and growth while the still low euro supports exports. Fears of solvency risks for govts and the banking ...Read More

Saudi oil production

Looks like net demand is slowly using up Saudi excess capacity. But there’s a long way to go. No telling when they might alter prices- it’s a political decision on their part. ...Read More

Irving Fisher quote

For all you gold bugs. Tell me Irv didn’t get it! “The U. S. is headed toward a period of business depression, probably beginning within the next two years, which may exceed that which preceded the War. . . . The only thing that will save us is a new gold policy ...Read More

courant coverage

Independent candidates for U.S. Senate, Warren Mosler, left, and John Mertens, second from left, talk with Republican candidates Rob Simmons, second from right, and Peter Schiff, right, following a debate at Trinity College in Hartford, Conn., Tuesday, July 27, 2010. (Jessica Hill, Associated Press / July 27, 2010) ...Read More

State tax revenue increasing

This is another sign of growth creeping in. The States will be fine with a bit more GDP growth, and if they maintain their equity allocations their pension funds will all recover when equity prices double over the next few years. With strong productivity growth throughout the recession, there is a lot ...Read More

EU Daily | European Loan Growth Accelerated in June as Economy Recovered

As previously discussed, the recovery looks real to me, firmly supported by very high public sector deficits, and the implied support of the ECB which continues to stand by to fund the banking system as well as to buy national govt debt in the secondary markets as needed. Yes, there are downside ...Read More

The Political Genius of Supply-Side Economics

Where am I wrong, if at all? I agree with the political analysis. I know Bruce Bartlett and he’ll be the first to tell you he does NOT understand monetary operations. Even simple statements like ‘China keeps its dollars in its reserve account at the Fed’ seem to cause him to glass ...Read More

UK News — GDP Stronger Than Expected

As expected, boom time for now as the massive deficit spending raised savings and incomes, recharging consumer batteries, and supply the financial equity to fuel the subsequent expansion. Look for rate hikes to add gasoline to the fire as well. The risk of slowing from fiscal tightening is way down the road. ...Read More