Category Archives: Monetary Policy

Memo to Wall Street:  The Monetary Cavalry Ain’t Coming

For the past 25 years, markets have depended on central banks to bail them out because of the delusion that “inflation had been vanquished to the dustbin of history.” Even after the Jay Powell smackdown, we still hear talk of … Continue reading

Posted in Inflation/Deflation, Monetary Policy, Uncategorized | Tagged , , , , | 16 Comments

How The U.S. Made Inflation Worse

Not a bad primer video from CNBC on the Fed’s policy mistakes, which we all are now, literally, paying for. I would add that monetary policy is a black box, mainly because we can’t define the money supply, much less … Continue reading

Posted in Inflation/Deflation, Monetary Policy | Tagged , , | 21 Comments

History Is Not On Inflation’s (or the Fed’s) Side

CPI inflation hit 9.1 percent in June.  The FinMedia is quick to point out it was “the highest level in more than forty years,”   We doubt you will hear (at least from them) any context or the rest of the … Continue reading

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Inflation: The Road Ahead For The Rest Of 2022

#CKStrong A reasonably informative video below, especially regarding inflation. Not much mention of the growth of money driving excess demand, however. M2 (thanks to the great Ed Yardeni for the charts) is still growing over 10 percent, in the U.S. … Continue reading

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What Are Bond Yields & Breakevens Telling Us?

#CKStrong    Carol K.’s ANC broke above 1200 today.  Absolute Neutrophil Count (ANC ) measures a type of white blood cell that kill and digest bacteria and fungi to help the body fight infections and heal wounds. At a time … Continue reading

Posted in Fiscal Cliff Monitor, Fiscal Policy, Interest Rates, Monetary Policy, Uncategorized | Leave a comment

Why This QE Is Different In One Chart

Robin Hood traders don’t bother reading. The latest round of central bank balance sheet expansion, which will reaccelerate soon as Biden’s COVID bill is passed, needs some context. By the way, we did some rough approximations late last night and … Continue reading

Posted in Monetary Policy | Tagged | 3 Comments

US Facing Mounting Debt Amid Global Pandemic – ABC

Good interview with Professor Barry Eichengreen of UC Berkeley, a good friend of GMM, and odds on favorite to be a Nobel laureate one day.   We agree with him that now is not the time to worry about the public … Continue reading

Posted in Debt, Monetary Policy, Uncategorized | Tagged , | 1 Comment

Markets Have Jumped The Shark

Welcome to the Twilight Zone.    Nothing seems real anymore — not the economy, not the markets, not the politics — and it is increasingly difficult to distinguish the difference between what is and what isn’t.  It truly feels the economy, … Continue reading

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Posted in Monetary Policy, Uncategorized | Tagged , | 18 Comments

The Last Central Banker With Balls

[Balls as in courage and bravery.  Exemplified in the quote,  “Margaret Thatcher was Ronald Reagan with balls.”  Don’t get all PC on us now!] As a graduate student, I interviewed at the Federal Reserve Board in the Eccles Building on … Continue reading

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Are Central Banks Ready To Break Their Codependency?

Breaking our radio silence as we couldn’t help ourselves after reading former NY Fed President William Dudley’s piece imploring the Fed to stop enabling Trump’s  trade war. It sounds like central bankers are starting to realize they are, and have been, … Continue reading

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