Fed Vice Chairman Donald Kohn said the world would be a lot better if emerging markets simply dropped their dollar pegs. This means they would stop importing U.S. inflation by matching the Fed rate cut for rate cut. In a speech earlier this week Kohn said, “In those countries where strong commodity demands are associated with rapid growth in aggregate demand that outstrips potential supply, actions to…
July 2nd, 2008 | Dan Denning | 6 comments | ContinuedAll Posts Tagged With: "federal reserve"
The U.S. Federal Reserve’s Inflationary Feast
I could see that the audience of reporters and passersby was getting nervous, as I had just finished going through the explanation of how the U.S. Federal Reserve creates inflation in the money supply by creating too much money and credit, which causes inflation in things as all of this money enters the economy, and then eventually the inflations in stocks, bonds, houses and the size of government becomes so great that further infusions of money must increase in proportion to…
July 1st, 2008 | Mogambo Guru | 3 comments | Continued
U.S. Fed Leaves Rates Unchanged, Morons
Should anyone take the Federal Reserve seriously anymore? The Fed left short term U.S. rates at 2% yesterday, though in real terms, interest rates are below the rate of inflation and therefore negative. Not exactly hawkish. The Aussie dollar moved toward 96.
June 26th, 2008 | Dan Denning | 5 comments | Continued
Fed’s Aggressive Attempts to Put More Money and Credit in Circulation and the Asset Bubbles
People are beginning to put two and two together - to make the connection between the Fed’s aggressive attempts to put more money and credit in circulation and the asset bubbles. And now that they’ve got their slide rules out…
May 16th, 2008 | Bill Bonner | 6 comments | Continued
U.S. Fed Now Accepts Credit Card Debt as Collateral
The Fed has become the mother of all credit exiles, accepting Wall Street’s over-valued, under-performing, dead-beat loans. At least that is what it’s done in a metaphorical sense. On Friday the Fed expanded the list of collateral it will accept for asset-swapping through its Term Securities Lending (Facility). That list of asset-backed securities now includes collateralized car loans, credit card receivables, and student loans.
May 5th, 2008 | Dan Denning | 7 comments | Continued
The Stinging Reproach of a Former Fed Chairman
Alan Greenspan has been popping up all over the press lately - after 18 years of Greenspeak, it looks like the former Fed chief wants to set the record straight…
April 10th, 2008 | Kate Incontrera | 3 comments | Continued
Federal Reserve Did What Everyone Expected and Cut the Fed Funds Rate
Back in America, the Federal Reserve did what everyone expected and cut the Fed Funds rate (the rate at which banks lend to one another) by 75 basis points to 2.25%. Only 225 basis points to go before we hit zero.
March 19th, 2008 | Dan Denning | 3 comments | Continued
Federal Reserve’s Interest-Rate Cuts are Limiting Asian Counterparts’ Options to Curb Inflation
Bloomberg reports that, “Under Bernanke’s chairmanship, the Federal Reserve’s steepest interest-rate cuts since 1990 are limiting his Asian counterparts’ options to curb inflation.” Instead of raising their own borrowing costs or letting their currencies appreciate faster…
February 20th, 2008 | Bill Bonner | 4 comments | Continued