Category Archives: CBs

Housing starts, Japan discussion, China, US pmi, store sales

Looks bad to me. Remember, for GDP to grow at last year’s rate, all the pieces on average have to contribute that much. And, as previously discussed, hard to see how starts and sales can grow with cash buyers and … Continue reading

Posted in Bonds, CBs, China, Deficit, GDP, Housing, Japan, Trade |

Comments on crude pricing, the economy, and the banking system

Crude pricing The Saudis are the ‘supplier of last resort’/swing producer. Every day the world buys all the crude the other producers sell to the highest bidder and then go to the Saudis for the last 9-10 million barrels that … Continue reading

Posted in Banking, CBs, Comodities, Credit, Currencies, Fed, GDP, Inflation, Interest Rates, Oil |

EU Commission- more of same

:( Latvia’s Dombrovskis Brings Fiscal Hawk Record to EU Commission By Mathew Dalton Oct 5 (WSJ) — The budget hawk who steered Latvia out of economic collapse with a bruising austerity program is poised to get one of the EU’s … Continue reading

Posted in CBs, ECB |

Mexico cuts rates

Little do they know that lowering rates removes interest income from the economy and on the supply side lowers costs and lowers forward prices, thereby reducing inflationary forces… Mexico central bank unexpectedly cuts rate to spur weak economy By Michael … Continue reading

Posted in CBs |

Professor Andrea Terzi quoted on CNBC

Well done!!!! You’d think he’d turn to Brits like Charles Goodhart who wrote volumes on it for the last 50 years! ;) How QE may be doing more harm than good By Paul Gambles May 7 (CNBC) — I’ve spent … Continue reading

Posted in CBs | Tagged |

Comments on Martin Wolf’s banking article

Strip private banks of their power to create money By: Martin Wolf The giant hole at the heart of our market economies needs to be plugged Printing counterfeit banknotes is illegal, but creating private money is not. The interdependence between … Continue reading

Posted in Banking, CBs, Currencies, Fed |

Draghi on the euro

Draghi says a stronger euro would trigger looser ECB policy (Reuters) Except by my calculations he has it backwards, as lower rates make a currency like the euro stronger, not weaker, via the interest income channels, etc. ECB President Mario … Continue reading

Posted in CBs, Currencies, ECB, Trade | Tagged |

The BoEs sharp shock to monetary illusions

The BoEs sharp shock to monetary illusions

Posted in Banking, CBs, Currencies |

The Old Lady (of Threadneedle Street) fails to get an A

The Old Lady (of Threadneedle Street) fails to get an A

Posted in Banking, CBs, Currencies |

Comments on Stanlely Fisher’s ‘Lessons from Crises, 1985-2014′

Lessons from Crises, 1985-2014 Stanley Fischer[1] It is both an honor and a pleasure to receive this years SIEPR Prize. Let me list the reasons. First, the prize, awarded for lifetime contributions to economic policy, was started by George Shultz. … Continue reading

Posted in Banking, Bonds, CBs, Credit, Currencies, Deficit, ECB, Employment, Government Spending, Housing, Interest Rates |