The ECB’s Experiment With NIRP Is A Catastrophe——–The Evidence Is In
The orthodox intention behind NIRP is that by taxing idle “money” it will make banks put it to use. Setting aside relevant objections about what bank “reserves” actually are, negative nominal rates...
View ArticleWelcome to the New Dark Ages—–Mad Lunatics At The Fed Are Fixing To Tax Your...
The popular notion that the economy’s doing just fine is losing acceptance with each passing week. Politicians, central bankers, brokers, and even the nightly news broadcasters can no longer pretend...
View ArticleNIRP Backlash…In Japan
Maybe after a couple generations the Japanese have finally had enough. Perhaps QQE was large enough so as to leave no doubt that not only did it fail, but that it was the same result registered time...
View ArticleDraghi’s Duplicity: QE Works Because QE Works——–Even Though It Hasn’t In The...
The prevailing view is that the ECB will add to QE tomorrow in accompaniment of a further negative deposit rate floor. Whether or not Draghi and his orthodox economists have the gall to shunt the MRO...
View ArticleNow We Know Why the ECB Panicked
The only immediate silver lining may be in the end the most fruitful of long-term prospects. Central bankers have done us a profound favor by overplaying their hand time and again. The catalog of false...
View ArticleNo Free Lunches Be Damned
“There ain’t no such thing as a free lunch,” is one of the essential axioms of economics. No doubt about it, there’s no getting around this simple truth. Everything has a price. For example, even if...
View ArticleThe BOJ’s Inadvertent Confession——–Fostering “Price Stability” By Destroying...
The Bank of Japan had previously “disappointed” last December when it failed to announced more “stimulus.” Setting aside who might actually have been frustrated by the lack of renewed distortions, the...
View ArticleDouble Whammy Economics
What’s up with the U.S. consumer? They seem to have come to their senses at the worst possible time. They can no longer be counted on to push economic growth up and to the right. Specifically,...
View ArticleStunning——–20 Years Of Stimulus, Nothing To Show
There was a time not all that long ago that it was great, maybe even thrilling, to be a central banker. The late 1990’s had to have been the absolute apex, but the aftermath of the Panic of 2008...
View ArticleJapan Data Dump——-Mostly Dumping All Over Abenomics
Ten days ago, it was reported that the Bank of Japan for the first time set aside reserves against expected losses should its massive portfolio of JGB’s finally move toward QQE success. The main part...
View ArticleThe Central Bank ‘Stimulus’ That Isn’t
On July 2, 2015, the 10-year Japanese Government Bond (JGB) traded to a stout closing yield of 0.511%. That was up significantly, in Japanese financial terms, from the start to the year where the...
View ArticleNegative Interest Rates and the War on Cash, Part 1
Irving Underhill City Bank-Farmers Trust Building, William & Beaver streets, NYC 1931 It’s been a while, but Nicole Foss is back at the Automatic Earth -which makes me very happy-, and for good...
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