The Federal Reserve continues to pursue its Quantitative Easing 2 exercise. Over the four-week period ending May 4, 2011, the Federal Reserve purchased $84 billion of U. S. Treasury securities. About $18 billion of...
Read MoreGovernment policymakers just don’t seem to get it!The economic philosophy governments have been using as the foundation of their budget and monetary policy since World War II isn’t working. Governments...
Read MoreWhen one discusses large government deficits the discussion generally centers on either the ability of the government to finance those deficits in financial markets or the need to “monetize” the debt, thereby...
Read MoreI have been talking with a lot of people recently about the changes that are taking place in the United States and elsewhere. More and more people are discussing the possibility that the world is changing in a way...
Read MoreSovereign recovery swaps are “bets on how much money will be retrieved in a default.” The first trades took place last year. (See “Default risks spark interest in recovery swaps...
Read MoreOn February 21, 2011, I asked the question, “Why is most of the Fed’s QE2 cash going to foreign-related banking institutions?”...
Read MoreThis blog was begun in February 2009. From the very beginning, I have been a “weak dollar” person, believing that the longer-term trend in the value of the dollar is downwards. My reasoning for this is that the...
Read MoreWhat evidence have I got that the United States has mis-used its responsibility as the provider of the reserve currency of the world? Look at the morning papers.“Singapore Aims to be Renminbi Trade Hub,” in the...
Read MoreWhy should anyone invest in commercial banks these days?My answer is that they should not.My reason for this is that bank accounting is so screwed up that it is extremely difficult, if not impossible, to place a value on...
Read MoreThe Federal Deposit Insurance Corporation oversaw the closing of six banks on Friday, April 15. This brings the total for 2011 up to 34 banks, a pace of about 2.3 banks per week. In 2010, 157 banks were closed, a...
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