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Home / Tag Archives: Monetary Policy (page 30)

Tag Archives: Monetary Policy

Ray Dalio: “This Is The Most Important Economic, Political And Social Issue Of Our Time”

Every quarter, the Fed's Flow of Funds report discloses - among many other things - the total U.S. household net worth, and every quarter for the past two years this number has steadily gone up, hitting fresh all time highs with every new release, most recently $96.2 trillion, to widespread cheers from both the financial press and the public, as well as the administration.  However, as we show every quarter, this aggregate number is largely meaningless in providing a status update on the...

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USDJPY Inches Higher As Japanese Stocks Set For Longest Winning Streak In History

Yen is weaker and Japanese equity futures notably higher following a landslide election victory for Japan Prime Minister Shinzo Abe which theoretically ushers in yet more easy monetary policy. USDJPY has jumped above 114.00 in early trading, sending NKY futures up almost 1% in the pre-market. If this equity rise holds it will mark the 15th consecutive gain for the Japanese market - breaking the 1961 record of 14 straight days to become the longest winning streak in Japanese stock market...

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Mauldin: “Investors Ignore What May Be The Biggest Policy Error In History”

Submitted by John Mauldin My good friend Peter Boockvar recently shared a chart with me. The University of Michigan’s Surveys of Consumers have been tracking consumers and their expectations about the direction of the stock market over the next year. We are now at an all-time high in the expectation that the stock market will go up. The Market Ignores Monetary Uncertainty It is simply mind-boggling to couple that chart with the chart of the VIX shorts (I wrote about the VIX craze in this...

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“Carnival Barker” Krugman & The Inevitable Weimar Endgame

Authored by Jeffrey Snider via Alhambra Investment Partners, Who President Trump ultimately picks as the next Federal Reserve Chairman doesn’t really matter. Unless he goes really far afield to someone totally unexpected, whoever that person will be will be largely more of the same. It won’t be a categorical change, a different philosophical direction that is badly needed. Still, politically, it does matter to some significant degree. It’s just that the political division isn’t the usual R...

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A breath of fresh air from John Cochrane

Over at TheMoneyIllusion I've been running a series of posts that are critical of popular views of inflation. I claim inflation is determined by shifts in the supply and demand for money, and that factors like the Phillips curve and interest rates are not central to the inflation process. Think of money supply and demand models as fundamental, and Philips curve and interest rate models as contingent. John...

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The Next Generation Of Currency Wars: Private Vs State-backed Crypto

Authored by Tho Bishop via The Mises Institute, Recently Russia announced that it will be unleashing a CryptoRuble, just a week after Vladimir Putin strongly criticized Bitcoin and other private cryptocurrencies.  When announcing the move, Minister of Communications Nikolay Nikiforov acknowledged that it was in part inspired by the aim of getting ahead of other governments: I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after two months our neighbors...

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Voters don’t hate inflation

Here's Tyler Cowen: Many monetary rules call for higher rates of price inflation if the economy starts to enter a downturn. That's often the right economic prescription, but voters hate high inflation. Tyler is engaged in "reasoning from a price change". A term like 'inflation' doesn't mean much of anything to the public, and certainly not what economists like Tyler mean by the term. When I used to poll...

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“Advanced Monetary Surrealism” Summarized In 60 Slides For Gold Bulls

For anyone who wasn’t included on the 1.5 million person distribution list for Incrementum AG’s latest 160-page annual tome on the gold sector, “In Gold We Trust”, the authors/portfolio managers, Ronni Stoeferle and Mark Valek, helpfully condensed the report into a chartbook containing "only" mere 60 charts. This can be viewed below, and as a courtesy for those short on time, here is our pick of the 14 best charts.  Incrementum believes that the bull market in gold has resumed. The gold price...

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Central bank infallibility is a core axiom of modern macro

Over at TheMoneyIllusion I have a new post that (among other things) discusses this claim: Blanchard was prompted to recite his faith in the power of the Phillips Curve by former Fed governor Jeremy Stein, who wondered how central banks were supposed to raise their inflation target to 4 per cent when they are still undershooting the current target of 2 per cent. Blanchard seemed to think the answer was easy:...

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$1 Trillion In Liquidity Is Leaving: “This Will Be The Market’s First Crash-Test In 10 Years”

In his latest presentation, Francesco Filia of Fasanara Capital discusses how years of monumental liquidity injections by major Central Banks ($15 trillion since 2009) successfully avoided a circuit break after the Global Financial Crisis, but failed to deliver on the core promise of economic growth through the 'wealth effect', which instead became an 'inequality effect', exacerbating populism and representing a constant threat to the status quo. Filia concludes that "the big opportunity in...

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