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 […]
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 […]
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.
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 […]
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?
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.
Under the rules of legislation that had been passed a year earlier, the U.S. government suspended all redemptions of silver certificates in 1968.
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 […]
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 […]
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.
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 […]
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 […]
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 […]
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, […]
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.
Some call it the “War on Cash.” Others, citing studies, suggest we are approaching “Peak Cash,” referencing the similar transformation that will accompany environmental constraints such as “Peak Oil.” No matter what you choose to call it, the world’s advanced economies are all hurtling toward a system of fully digitized money—perhaps coming as soon as […]
Wells Fargo may have let its latest scandal break too close to Congressional elections. An angry American public are asking questions of their Congressmen. Questions such as “Why have no banking executives been punished for destroying the world financial system in 2008? Why are banks allowed to get away with endless instances of fraud, market […]
In this unprecedented era of central bank intervention in the global economy, we’ve seen an increasing use of bellicose and militaristic metaphors for monetary policy tools—”Bazookas! Sinks! Aggressive Doves!” a recent Wall Street Journal headline declares sardonically of the figurative language that central bankers have resorted to. Heck, even the title of this article relies […]
Among many other more important factors, one of the precursors to the financial crisis was the lifting of a long-standing legislative prohibition on investment banks simultaneously operating as commercial banks, and vice versa. Since the passage of the Glass-Steagall Act (1933) during the time of FDR and the New Deal, these two functions were kept […]
We live in unprecedented times when it comes to central banks resorting to untested and counterintuitive monetary policy. As many experts have noted over the past two years, the Federal Reserve and other central banks around the world are in dire need of a credible exit strategy from their extreme policy measures. Increasingly, it looks […]