It’s what we call the Fed’s war on cash. You see, the Fed is driving down yields on government bonds and notes of all maturities quite deliberately. More on what it’s up to below. But it’s not just the Fed that’s pulling out all the monetary stops to float the world on a sea of credit. It’s a now a race to the bottom for central bank interest rates. New Zealand’s central bank cut its main interest rates by a whopping 1.5% overnight…
December 4th, 2008 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "central bank"
Central Bank Tries to Determine Interest Rates as Far as it Can
That is, the central bank tries to determine interest rates as far as it can. The rationale for this policy is to attain full employment and price stability…
November 20th, 2008 | Ed Bugos | 5 comments | Continued
Keynesian Economists Bluff in Global Economic Gamble
One step forward, three steps back. That’s what the trading action looks like in the markets now. For every big one day advance of 1% to 5% or more, you’re going to get a corresponding sell off equal or greater to that. It’s not normal to see these kinds of one-day moves. But these aren’t normal times. We’re back on the edge of a credit abyss. Just when investors were convinced that the Gordon Brownification of the world’s banking sector had put the credit crisis behind us, we have more bad news.
October 16th, 2008 | Dan Denning | 3 comments | Continued
Central Bank Has Lost Control of Credit Crisis
Not one but three different banks are warning investors of major crisis ahead. Note to the banks: where have you been for the last year? A thousand martini lunch? The slow-motion credit crisis is nearly twelve months old. The question today is whether the competing interest rate policies of the European Central Bank and the U.S. Federal Reserve will lead to more selling in global stock markets and higher commodity prices. Inflation is winning the war.
June 20th, 2008 | Dan Denning | 18 comments | Continued
Can the U.S. Central Bank Really Begin Fighting Inflation in a Serious Way?
The Fed seems to be trying to create a situation whereby they are seen to be fighting inflation, simply by not lowering rates any further,” says MoneyMorning. “This is because, while the Fed may have no interest in fighting inflation, they have a big interest in fighting what they call ‘inflationary expectations’.
June 6th, 2008 | Bill Bonner | 8 comments | Continued