Category Archives: Interest Rates

Turkey’s President has it right!

Maybe they’ll invite me there for Thanksgiving- see where it all started! ;) Erdogan: You Can’t Decide Interest Rates According to Inflation By Ali Berat Meric Feb 4 (Bloomberg) — Turkish President Recep Tayyip Erdogan says making interest-rate cuts dependent … Continue reading

Posted in CBs, Inflation, Interest Rates |

A Modest Response

A Modest Proposal for Resolving the Eurozone Crisis By Y. Varoufakis, S. Holland AND J.K. Galbraith 1. Prologue Europe is fragmenting. While in the past year the European Central Bank has managed to stabilise the bond markets, the economies of … Continue reading

Posted in Bonds, CBs, ECB, Interest Rates |

durable goods, Case Shiller, new home sales, Consumer Confidence, Richmond Fed, PMI services flash, GDP comments, 10 yr vs Fed

Down hard and revisions down hard as well, and year over year growth up less than 1%: Durable Goods Orders Highlights Durables orders unexpectedly fell 3.4 percent in December after dropping 2.1 percent in November. Analysts projected a 0.7 percent … Continue reading

Posted in Bonds, Economic Releases, Fed, GDP, Housing, Interest Rates |

Japan rate update, Empire manufacturing

‘The market’ sure doesn’t seem to think rates in Japan are going up after decades of 0 rates: This survey just turned radically: New York state manufacturing index lowest in two years: NY Fed Dec 15 (Reuters) — Manufacturing activity … Continue reading

Posted in Interest Rates, Japan |

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 |

Bill Mitchell on the secular stagnation hoax

The secular stagnation hoax

Posted in Employment, Government Spending, Interest Rates |

There is no right time for the Fed to raise rates!

There is no right time for the Fed to raise rates! Introduction I reject the belief that economy is strong and operating anywhere near full employment. I also reject the belief that a zero-rate policy is inflationary, supports aggregate demand, … Continue reading

Posted in Deficit, Fed, Government Spending, Interest Rates, Proposal |

Fed policy comment

So the theme is ‘the Fed is getting behind the curve’ That is, Yellen keeps rates ‘too low’ causing the economy to overheat. Complete nonsense, of course, but it drives markets until it doesn’t. Much like QE. The 0 rate … Continue reading

Posted in Fed, Interest Rates | Tagged |

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 |

Remember all the talk about the deficit causing rates to go up in Japan?

Full size image

Posted in Bonds, Interest Rates, Japan |