Category Archives: Politics in Financial Policy

fed-dove

When the Doves Cry: Fed Edition

February 22nd, 2017 by

The doves have come out in full force. No, not at the local aviary or the park, but in the chambers of the Eccles Building in Washington, D.C.—the home of the U.S. central bank, the Federal Reserve.

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The Government’s New (Old) Funny Economic Numbers

February 20th, 2017 by

There has always been a class of contrarian investors who boldly believe that the economic data published by government agencies, such as the much-maligned Bureau of Labor Statistics (BLS), is faulty. Whether this inaccuracy is through incompetence or conscious design is up to interpretation. Even though the Trump administration has wasted no time in shaking […]

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Will Trump Make Money Great Again?

February 3rd, 2017 by

The new president has trumpeted the promise to “Make America Great Again,” or simply known as the shorthand #MAGA, a central and consistent refrain of his agenda. It seems that one of Donald Trump’s first orders of business is making the U.S. dollar great again.

world economic forum

World Economic Forum (WEF) Meets in Davos

January 20th, 2017 by

The world’s financial elite, from finance ministers to central bankers to business leaders to high-ranking government officials, held their annual gathering in Davos, Switzerland this week. This year, the meeting of the World Economic Forum (WEF) from January 17th to January 20th was focused on how the changing political and economic landscape around the world […]

fed eccles building

Beware a Fickle Fed

January 18th, 2017 by

Inflation is picking up. The U.S. economy is gradually improving. The stock markets are at all-time highs. Official unemployment numbers are as low as they have been in decades. In sum, the case for the Federal Reserve to accelerate the glacial pace of its path toward interest-rate normalization is growing stronger. Yet that is hardly […]

FOMC conference room (photo: Federal Reserve)

New Faces At Fed Policy Meetings

January 11th, 2017 by

This year, three of the four rotating seats on the Federal Reserve Open Market Committee have been filled by the three newest regional Fed presidents: Robert Kaplan of the Dallas Fed, Patrick Harker of the Philadelphia Fed, and Neel Kashkari of the Minneapolis Fed.  This will be the first time any of the three have […]

Flickr|Gage Skidmore

Trump Can Remake The Fed In His Image

January 4th, 2017 by

One of the many populist stances that Donald Trump took during the election was that the Federal Reserve should at least be audited and held accountable for its actions, and perhaps be abolished by Congress. Trump, who whipped up a frenzy of anti-Fed sentiment on the campaign trail, may feel he now has to follow […]

goldman sachs

Goldman Sachs Infiltrates Trump Administration

December 1st, 2016 by

One of the rallying cries for the successful underdog presidential campaign of Donald J. Trump was that voters needed to “Drain the Swamp” of Washington, D.C. Unfortunately, it seems a few crocodiles have still crept into the incoming Trump administration.

raining-money-dollars

Trump Is Just What The Fed Has Needed Most

November 10th, 2016 by

The Federal Reserve (and every other major central bank in the world) has been begging their government for years to implement fiscal stimulus to match their monetary stimulus, All the money printing in the world can’t reach the “real” economy if the government doesn’t help boost demand. Now, it seems that the most unlikely hero is riding […]

killing-bull-market

Expansions Don’t Die of Old Age, They’re Murdered

November 7th, 2016 by

A number of articles have appeared recently, proclaiming that the present economic expansion is “too old” to survive, and will soon die. However, the data since WWII shows that expansions don’t die of old age, they’re murdered. So, if economic expansions die of unnatural causes, who are the prime murder suspects?

contagion

The Zombie Economy

November 2nd, 2016 by

Since the beginning of July, the U.S. stock market has been abnormally calm. Especially given the various troubling signs in the global economy, as well as the seemingly constant twists and turns of the presidential election, a lack of volatility of Wall St comes as a fairly surprising development.

russia-gold

Russian Gold Reserves Grow

October 21st, 2016 by

This year, no central bank or central government has bought gold at a more vigorous pace than the Russian central bank. It has significantly added to its gold reserves in 2016, and this trend has continued. September saw Russia grow its gold reserves by 500,000 troy ounces (15.55 metric tonnes). Year-to-date, the central bank has […]

gold manipulation

Bank of Nova Scotia: Gold Manipulation?

October 15th, 2016 by

In the wake of a court ruling from a U.S. District Court judge in New York, the Bank of Nova Scotia (BNS) must now turn over internal correspondence—including electronic communications—between its employees in regard to the old gold fix. The decision allows the years-long case against the bank for engaging in price manipulation as a […]

123rf #13222683 purchased 2014-03-07

Big Banks Discuss Their Future

October 10th, 2016 by

At meetings in Washington, D.C. held by the International Monetary Fund (IMF) and the less well-known Institute of International Finance (IIF), many of the world’s biggest banks trained their attention on what the future of their industry may look like. In some ways, the discussion amounted to an existential question for the entire banking system.

slippery

IMF Warning of Instability

October 6th, 2016 by

Earlier this year, the International Monetary Fund (IMF) worried publicly about a storm brewing for the global economy if government policymakers don’t match the coordinated easing of monetary policy with complementary fiscal policy—in other words, more spending. In its second biannual report of the year, the IMF is now warning about dwindling bank profits as […]

draghi

Draghi Enters The Berlin Lions Den

September 28th, 2016 by

European Central Bank President Mario Draghi traveled to Berlin today to face some of his harshest foes: the German lawmakers of the German Bundestag. This was his first trip through the doors of the Reichstag Building since October 2012, when he appealed to lawmakers to support his plan of unlimited purchases of government debt. His […]

Abenomics: Japanese Media Optimistic?

September 28th, 2016 by

Japanese Prime Minister Shinzo Abe, who with the Bank of Japan (BOJ) Governor Haruhiko Kuroda has embarked on an unprecedented amount of quantitative easing known as “Abenomics,” won over enough voters to recently earn reelection for his government. This is widely seen as a mandate for him to continue his aggressive, accommodative economic policies. Yet […]

market-loss

History Points to Market Correction

September 26th, 2016 by

For those analysts who have a sense of perspective about cycles in the markets, we appear to be living in very strange economic times, indeed. There will always be pundits on each side of the argument, the pessimistic bears and the optimistic bulls. (It’s worth stating that if someone’s hedge fund is long or short, […]

confused

More Confusion from the Fed

September 23rd, 2016 by

For all of its miscalculations, mistakes, and policy difficulties, the best thing that the Federal Reserve could give to the markets is clarity. This, however, is not part of the central bank’s modus operandi. Nor is it likely to happen in the near future.