The Cleveland Fed’s Loretta Mester is a clueless apparatchik and Fed lifer, who joined the system in 1985 fresh out of Barnard and Princeton and has imbibed in its Keynesian groupthink and institutional arrogance ever since. So it’s not surprising that she was out flogging - albeit downunder in Australia - the next step in the Fed’s rolling coup d’ etat...“So it’s my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative." It’s the ultimate in 'something for nothing' economics.
The idea (now being pushed by a surprising number of people who ought to know better) that governments should take advantage of historically low interest rates to “invest” with borrowed money has an obvious fatal flaw. That is, accumulating even more negative or zero-rate debt will make it functionally impossible to raise rates to “normal” levels, which is to say levels where markets can once again function as mechanisms for moving savings into productive investments. It’s not a stretch to call this the end of capitalism and the beginning of a new Dark Age.
"We're always assessing tools that we could use," Mester told the ABC's AM program. "In the US we've done quantitative easing and I think that's proven to be useful. "So it's my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.
Contagion is the reason Italy’s banking crisis is all of a sudden Europe’s biggest existential threat. Greece’s intractable problems are out of sight, out of mind; Brexit momentarily spooked investors and bankers; but Italy’s banking woes have the potential to wipe out investors and undo over 60 years of supranational state-building in Europe.
"The U.S. actions near China, particularly those on the South China Sea issues, are part of its Asia-Pacific Rebalance strategies. Its intentions are no more than containing China to preserve its interests in the Asia-Pacific region and its global hegemony. The U.S. motives are apparent to the world, especially to the Chinese people. The current China is nothing like the country it was one hundred years ago. Any act that tries to violate China's territorial sovereignty will fail."
IEX's recent approval as a US stock exchange, against Nasdaq's and the rest of the industry's best efforts, has created a venue where fair trading takes place. As the following clip, in IEX-own words, expresses so clearly, it is hard enough already for main-street to understand and stay on top global developments. They should not need to struggle between choosing a Post No Preference Blind Limit Order or a Routed Peg Order.
As rates and growth converge at low levels, legacy investments modelled on more optimistic assumptions struggle. Many fail. The pressure on incumbent profit margins from these newcomers simply exacerbates their troubles. “So that feedback process of interest rates below a certain level becomes quite destructive to the existing base of capital,” explained Lithium. “That’s the simplest answer.”
The longest war in US history just got even longer. As NATO wrapped up its 2016 Warsaw Summit, the organization agreed to continue funding Afghan security forces through the year 2020. Of course, with all that funding comes US and NATO troops, and thousands of contractors, trainers, and more.
Only one question matters for global investors - Where is the helicopter? Helicopter money will be raining from the skies in Japan, the Eurozone, the UK and even in the USA. This form of reflation will likely work and in due course work too much. Few things are binary in investment, but this huge decision to be taken in Berlin is the biggest binary event for investors this analyst has yet come across.
Nothing is more shameless in a bedazzling sort of way than rich banksters standing on the public curb with their hands out. Such is the spectacle across Europe today as its largest banks begin to crash.
The FBI continues to benefit from decades of pop culture and government whitewashing which portrays the FBI and other federal agencies as professional and effective. Always a product of left-wing and Progressive desires for more government intervention and a weakened private sector, the FBI continues to benefit from the perception that it functions in the service of the “public.” With James Comey’s recent demonstration of the FBI’s political motivations and origins, we have gained yet another insight into how the FBI works, and public service has very little to do with it.