Operating Policy: Statement Regarding Repurchase Operations

By FED 12/12/2019 The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo) operations for the monthly period from December 13, 2019 through January 14, 2020. In accordance with the most recent FOMC directive, the Desk will conduct repo operations to ensure that the [...] Read more

Gold to extend gain as Citi says low US rates here to stay

Gold to extend gain as Citi says low US rates here to stay

Fed Chairman Jerome Powell. Photo by the Federal Reserve, Flickr. By Ranjeetha Pakiam - Bloomberg News 12/12/2019 Gold’s got more room to rally as there’s little possibility of the Federal Reserve raising interest rates in 2020, according to Citigroup Inc. “The bar for the Fed to hike next year is extremely high,” New-York based director Aakash [...] Read more

Really Bad Ideas, Part 8: Yield Curve Control And Mega-Stimulus

BY JOHN RUBINO 12/11/2019 It’s been obvious for a while that the next phase of global monetary madness would be both spectacular and very different from the previous phase. The question was whether the difference would be in degree or kind. Now the answer is looking like “both.” Let’s start with “yield curve control,” in which central banks, [...] Read more

Really Bad Ideas, Part 7: Open Borders

BY JOHN RUBINO 02/22/2019 Now that we’re all free to speak our minds (maybe we should we call this the “post-political-caution world”) a lot of previously discredited ideas have re-emerged and are being tossed into the debate – apparently without much thought to, for instance, their horrendous unintended consequences. One such idea that’s, ahem, [...] Read more

Really Bad Ideas, Part 6: Money That “Rots And Rusts”

BY JOHN RUBINO 02/05/2018 In the next downturn (which may have started last week, yee-haw), the world’s central banks will face a bit of poetic justice: To keep their previous policy mistakes from blowing up the world in 2008, they cut interest rates to historically – some would say unnaturally — low levels, which doesn’t leave the usual amount of [...] Read more

Really Bad Ideas, Part 5: The Fed Should Have – And Defend – An Inflation Target

BY JOHN RUBINO 10/15/2017 Central banks in general and the Fed in particular are struggling to understand a world in which they’ve thrown everything they have at the economy without generating “beneficial” inflation. Their confusion can be traced back to some profoundly false assumptions. Here’s a good overview of the current debate: Fed ‘should [...] Read more

Really Bad Ideas, Part 4: Federal Flood Insurance

BY JOHN RUBINO 09/19/2017 As Hurricanes Harvey and Irma wreaked their havoc over the past couple of weeks, several interconnected questions popped up, the answers to which make us look, to put it bluntly, like idiots. Why, for instance, are there suddenly so many Cat 4 and 5 hurricanes? Is this due to man-made climate change and is this summer [...] Read more

Really Bad Ideas, Part 3: Government Debt Isn’t Actually Debt

BY JOHN RUBINO 08/09/2017 The failure of fiat currency and fractional reserve banking to produce a government-managed utopia is generating very few mea culpas, but lots of rationalizations. Strangest of all these rationalizations might be the notion that government debt is not really a liability, but an asset. Where personal and business loans are [...] Read more

Really Bad Ideas, Part 2: Giving Up Without Admitting It

BY JOHN RUBINO 05/26/2017 Doing the right thing is hard for both individuals and their governments. Name the goal – maintaining a healthy weight, paying off high-interest credit cards, keeping debt-to-GDP at reasonable levels, whatever – and with each missed deadline or broken promise success recedes further into the distance. And the temptation [...] Read more

Really Bad Ideas, Part 1: Modern Monetary Theory

BY JOHN RUBINO 05/12/2017 The past century has been an orgy of experimentation. We tried fascism, which initially looked good to some before (literally) crashing and burning. We tried communism, which looked great to many before killing millions and withering away. Fiat currency and fractional reserve banking, meanwhile, still make sense to most [...] Read more

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