Interest Rates Archive

Thaler’s Corner 04-22-2013 2013: And now?

Again, very well stated! Thaler’s Corner I must admit that I am at a loss for words these days. The analytical items at our disposal describe a situation so complex, given a myriad of contradictory influences, that I find it impossible to develop any sort of reasonable scenario. I have spent a ...Read More

financial repressionists painting frauds

Conclusion: The financial repressionists have it all backwards So the idea is the govt is ‘pushing rates down’ through QE and the like, thereby keeping rates below the rate of inflation, and that without this active ‘financial repression’ rates would otherwise be higher and not ‘repressed’. That is, the govt is interfering ...Read More

Mosler/Murphy ‘debate’

Details to follow. ...Read More

Wall of Shame

Wall of shame: High Debt Countries April 9 — Countries that let their debt loads get high risk losing control of their own fiscal sustainability, through an adverse feedback loop in which doubts by lenders lead to higher government bond rates, which in turn make debt problems more severe. ...Read More

Business conditions weaken again in March amid strong $A, weak spending

Anyone noticing how lower rates seem to be making things worse? Business conditions weaken again in March amid strong $A, weak spending ...Read More

The Stockman’s big swinging whip

The Man from Snowy River By Banjo Paterson So Clancy rode to wheel them — he was racing on the wing Where the best and boldest riders take their place, And he raced his stock-horse past them, and he made the ranges ring With the stockwhip, as he met them face to ...Read More

JPY Market Color Mar/21/2013

Debt to GDP over 200% 0 rates for decades Strong currency Alarmingly low term structure of rates Recent yen weakness looking ‘fundamental’ as trade goes negative maybe until nukes are restarted and ‘replacement’ gas and oil imports go back to where they were. Trade going negative after initial yen weakening due to ...Read More

Warren Mosler – economist – George Jarkesy Radio Show

Link to audio ...Read More

the macro cons

Skipping the pros and focusing on the cons regarding the economy: 1. 0 rates (including QE) continue to be a highly deflationary bias that require deficits to be that much higher. 2. The FICA hike’s a serious setback that reduces growth from 3 or 4% to 1.5 or 2.5% or less. 3. ...Read More

a word on the euro, US deficit doves, and Japan

As previously discussed, the euro looks to keep going up until the trade surplus reverses. Problem is the strong euro doesn’t necessarily cause the trade surplus to reverse, at least not in the short term. But it does tend to work against earnings and growth. And there’s nothing the ECB can do ...Read More