Thursday, September 29th, 2016 MST

Category: Inflation

Driving the markets

Central bank actions and expectations of central bank actions are driving investment markets: the bond markets, the equity markets and the metals markets.  Economic news does not move the markets, except that markets move on how investors think that central banks will react to economic news.

Government spending, worse than taxes

April 15 is behind us, and that gives a feeling of relief to those Americans who labored and toiled in 2015 to provide for themselves and their families while seeing billions of  dollars confiscated from their earnings.  (And, now they must keep records for years just in case they are later audited by the IRS.)

Draghi doubles down

Mario Draghi, ECB chief, again reaffirmed his pledge to print more euros next month in a Keynesian effort to fillip economic activity in the eurozone. In December, the ECB’s measures fell short of market expectations, and stock markets declined. This time Draghi does not plan to disappoint.

The Riksbank’s dilemma

To Keynesians, easy solutions reside for monetary and economic problems. When the economy is in recession, deficit spend. When inflation heats up (meaning rising prices, which the developed world hasn’t seen for some time), choke back the money supply. Problems solved. Recessions are averted; inflation is held in check. So, if “managing” the economy is

Bank of Japan to buy equities

Quantitative easing opened a Pandora’s box that will not be closed until massive inflation spreads worldwide. Only when people quit accepting the digital money that central banks spew will it end. However, the end may be far, far away. Traditionally, central banks created money “out of thin air” to finance wars by buying new government

Page 1 of 612345...Last »