The dollar is a favorite refuge for money seeking safety as the European banking crisis again dominates financial news. Consequently, 10-year US treasury bills are now yielding a record low of 1.39% as money pours into them. (As bond prices are bid higher, yields drop.)
Not surprisingly, Mark Carney, head of the Bank of England, recently said that the central bank would take “whatever action is needed to support growth” in the aftermath of the Brexit vote. Carney’s statements seemed to have been crafted from Mario Draghi’s repeated promises that the European Central Bank would do “whatever it takes” to
Japan’s economy has been stagnant for two decades. In 2012, Shinzo Abe was elected Prime Minister on his promise of stimulating the economy via a scheme that economists labeled “Abenomics.” Basically, he promised fiscal stimulus, monetary easing and structural reforms. He implemented all three, but Japan’s economy remains in the doldrums. Now the IMF is
As stock market indexes fail to punch out new highs, the bulls keep looking for positive developments so that they can keep investors buying stocks. Some stock bulls have noted that one of the bright spots in the US economy has been auto sales, forecast to hit 17.7 million vehicles this year and breaking last
For years, China watchers have warned that banks there are vulnerable to failure because of bad debt that the banks refuse to recognize. Now the IMF says that China’s corporate debt, which stands at 145 percent of Gross Domestic Product, “is a potential risk to the global economy.”
One of the primary tenets of Austrian economic theory is that economies cannot be “managed,” that interference, be it deficit spending, regulations, taxing policies, central bank quantitative easing programs or negative interest rates, will send false signals that will distort decisions made by the private sector, the real driver of economic growth. The bigger the
A telemarketing firm recently began promoting 1-1/2 oz Snow Falcon silver coins, minted by the Royal Canadian Mint. We advise our clients to stay away from any silver bullion coins larger than one ounce. Not only would 1-1/2 oz silver coins not be practical if the need ever came to use them as money, but
Austrian economists assert that governments cannot “manage” economies, but that such efforts only make things worse. Japan is a perfect example.
According to Symantec, North Korea probably is responsible for the $81 million theft from Bangladesh’s central bank. Researchers at the digital security firm uncovered “a rare piece of code” that had been seen in previous hacking cases by North Korea. The theft is believed to be the first by a nation for purely financial gain.
Is the US economy slowing down, which will prompt more Fed stimulus, or is it “dramatically better” as NY Fed President William C. Dudley said in a recent New York Times interview, which will allow the Fed to raise the discount rate later this year? In the first quarter, US Gross Domestic Product rose only