Free Money

How Much Longer Will Investors Trust The Central Banks?

It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.

What If We're In A Depression But Don't Know It?

Is the economy in a Depression? Not if you're a corporate bigwig skimming vast gains from corporate buybacks funded by the Fed's free money for financiers. But if you're a wage earner who's seen your pay, hours and benefits cut while your healthcare costs have skyrocketed - well, if it isn't a Depression, it's a very close relative of a Depression.

Just Plain Pathetic

We are speaking, of course, of the Fed’s decision to punt yet again, and for a reason that is not mysterious at all. To wit, our financial rulers are petrified of a stock market hissy fit, and will go to any length of dissimulation and double-talk to avoid triggering a crash of the very bubbles their policies have inflated.

Taper Tantrum II: "There's No Simple, Painless Solution"

It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.

Negative Interest Rates & The War On Cash, Part 3: "Beware The Promoters"

The main promoters of cash elimination in favour of electronic currency are Willem Buiter, Kenneth Rogoff, and Miles Kimball... in order to implement substantially negative interest rates..."If all central bank liabilities were electronic, paying a negative interest on reserves (basically charging a fee) would be trivial. But as long as central banks stand ready to convert electronic deposits to zero-interest paper currency in unlimited amounts, it suddenly becomes very hard to push interest rates below levels of, say, -0.25 to -0.50 percent, certainly not on a sustained basis. Hoarding cash may be inconvenient and risky, but if rates become too negative, it becomes worth it."

Mark Cuban: "I Have No Doubt The Market Tanks If Donald Wins"

Confirming that it is now all about the stock market, none other than Trump's most prominent non-political nemesis, Mark Cuban appeared on Fox News earlier today where he said that he has his "Trump hedge on", adding that "in the event Donald wins I have no doubt in my mind the market tanks....

Trump Slams Yellen: The Fed Has Created A "Stock Bubble" And "A False Economy" To Boost Obama

"The Fed is keeping the rates artificially low so the economy doesn't go down so that Obama can say that he did a good job. They're keeping the rates artificially low so that Obama can go out and play golf in January and say that he did a good job. It's a very false economy. That's only strong because it's free money because the rates are so low. It's an artificial market. It's a bubble."

Labor Day Summary: Wage Earners Have Taken A Beating

Let's honor Labor Day by reviewing what's happened to wage-earners in the eight years since central banks "saved the financial system" with free money for financiers: It's really very simple: wage-earners have seen their real earnings stagnate or decline while those chosen few with access to near-zero interest borrowed capital have seen their net income and wealth explode higher.

Finland Unleashes Helicopter Money In "Greatest Societal Transformation Of Our Time"

Finland is about to launch an experiment in which a randomly selected group of 2-3,000 citizens already on unemployment benefits will begin to receive a monthly basic income of 560 euros (approx. $600). That basic income will replace their existing benefits. The pilot study, running for two years in 2017-2018, aims to assess whether basic income can help reduce poverty, social exclusion, and bureaucracy, while increasing the employment rate.