central banks

Today’s mythbusting: the Fed is not suppressing interest rates

Summary: Here’s another in my series of economic myth-busting articles, explaining that the Fed is not suppressing rates. It is a follow-up to Ignore The Bond Bears, The Fed Will Not Raise Rates. Part of the magical, even divine, powers attributed to the Federal Reserve is their ability to set interest rates — both short- …

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Should we have a hard dollar, backed by gold?

Summary: We’ll hear much from Republicans during Campaign 2016 about the glories of a gold-backed currency. Today’s post debunks that with history from 19th Century Britain, when both men and money were hard.   {1st of 2 posts today} “Accursed thirst for gold! what dost thou not compel mortals to do?” — Virgil’s Æneid (29-19 BC). …

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Let’s ignore another warning from the BIS. Do we enjoy paying for burst bubbles?

Summary: As one market after another drifts off into bubble valuations, a few institutions warn of the consequences. As usual (we’ve done this so many times), we ignore them — our passivity and ignorance earning our role as the deep pockets paying for the resulting damage. This post looks at a few of the warnings …

Let’s ignore another warning from the BIS. Do we enjoy paying for burst bubbles? Read More »

Why the libertarian rich & their bankers love price controls – on money.

Summary: Marx believed that the inherent contradictions in capitalism would bring about its downfall. Events since the crash have revealed contradictions between the values and actions of the 1% and their bankers. But they’ve successfully managed these contradictions. That’s the operational genius of the pseudo-philosophy called libertarianism.  {1st of 2 posts today.} The price system …

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Today began the next phase of the great monetary experiment, as reality plays a trump card.

Summary: Today began the next phase of the great monetary experiment, the collision of Central Bankers’ bold promises with reality.  History suggests skepticism about the odds of CB’s success (e.g., see the many unbreakable currency pegs and unions which broke). Today the Swiss National Bank folded its cards. Here we discuss the significance of this …

Today began the next phase of the great monetary experiment, as reality plays a trump card. Read More »