At the European Central Bank (#ECB), they are so adamant about cutting rates lately that they are barely sparing a single day to remind markets about it (The time is ripe to cut interest rates next week, European Central Bank’s Rehn says). But, why such a rush when, even according…
Category:FED
WHAT HAPPENS IF JEROME “BURNS” POWELL SUDDENLY RESIGNS?
As you know, there is hardly a day when I don’t fire some shots towards #FED Jerome Burns. However, it is becoming evident that his powers and degree of discretion are equivalent to those of a cloth puppet. I wonder whether Jerome ever imagined being in his current position 10…
BECAUSE FOREIGN INVESTORS CANNOT KEEP PACE WITH THE US BALLOONING DEBT, WHY, WITHOUT #FED QE, JANET YELLEN ONLY ALTERNATIVE IS TO FORCE US PEOPLE TO BUY US TREASURIES.
Yesterday, the news that #China PBOC sold its largest amount of US Treasury reserves ever was not a shock. It was expected to happen sooner or later considering the state of the relationship between the two countries lately. Nevertheless, it was big news. At this point, I started to dig…
U.S. INVESTORS ARE THE DANCING PALLBEARES (AND THE AMERICAN DREAM IS THE ONE IN THE COFFIN)
The past 24 hours have been an absolute display of ridicule that the human mind could not contemplate a few years ago, but the Quantitative Easing fairy dust apparently makes every dream come true. I believe this CNBC article is the best example of incoherence between markets and reality: “CPI…
WHY UNDERSTANDING CENTRAL BANKS’ ACCOUNTING IS IMPORTANT TO UNDERSTAND THE CONSEQUENCES OF THEIR ACTIONS (ESPECIALLY THE BOJ ONES)
Yesterday, I got this interesting question that I believe the answer is worth sharing with everyone: why does the #BOJ balance sheet decrease when the #BOJ intervenes in the FX? And why doesn’t that mean there is less liquidity in the global system? Understanding central banking accounting is the key…
THIS LAST BURST OF QUANTITATIVE EASING WILL ACCELERATE THE OVERALL MONETARY IMPLOSION ALREADY UNFOLDING
Yes, quantitative easing is what just happened under everyone’s nose. The #JPY interventions of this past week effectively injected about 100 billion #USD into the global financial system that previously was not circulating. Why? Because #Japan MOF selling reserves to fetch #USD that can then be sold in the market…
WHY ILLEGAL IMMIGRATION IS VERY INFLATIONARY AND IF THE FED DOES NOT HIKE RATES NOW INFLATION WILL BE HOT RIGHT BEFORE THE US ELECTIONS IN NOVEMBER
Despite the #BOJ panic intervention as soon as the #JPY broke 160 against the #USD, and a US Treasury QRA (Quarterly Refinancing Announcement) that has been disclosed for an amount higher than expected, the longer end part of the US government bonds yield curve did not bother to move that…
AFTER LOSING THEIR GRIP ON GOLD, ARE THE FED AND THE US GOVERNMENT ABOUT TO LOSE THEIR GRIP ON OIL PRICES TOO?
Was anyone surprised to see #FED chairman Jerome Burns walking on stage today and saying out loud all those buzzwords that for a while have been pretty effective in feeding investors’ euphoria? I wasn’t, after all, it was already pretty clear after the last #FOMC that the real fed mandate…
HOW LONG CAN THE FED DELAY JAPAN’S (INEVITABLE) ECONOMIC IMPLOSION?
The USD dollar keeps strengthening and currently, the $DXY index is trading again above 105 or up ~0.77% in the past 5 days. What about the $USD / $JPY exchange rate? It’s only up ~0.14% while, instead, it should already be trading above 152, also considering the move in US…
AFTER #BITCOIN DID IT, NOW #GOLD IS SOUNDING THE ALARM
What are the differences between #Bitcoin and #Gold? If you put aside any personal views and stick with their pure characteristics, the two are not truly different from a monetary perspective: 1 – Both have limited supply, but at the same time, they can be divided into very minuscule units….