Larry Summers

Larry Summers Lashes Out At The Fed: "Tweetstorms" Why Yellen Should Not Raise Rates

There was a time when former Harvard head and Democratic administration darling, Larry Summers, would draw out a crowd at every public appearance. Those days are gone, however, and now the formerly corpulent cogitator is forced to resort to Twitter for his rants, such as the one he unleashed early this morning when in "tweetstorm" of 11 consecutive tweets he slammed Yellen for even daring to think about tightening.

Frontrunning: September 7

  • Trump and Clinton look to pass U.S. commander-in-chief test (Reuters)
  • Undecided GOP-Leaning Voters Provide an Opening for Donald Trump (WSJ)
  • Stage set for iPhone 7, but many await 8 (Reuters)
  • Dollar Slides Versus Yen as Prospect of September Fed Hike Dims (BBG)
  • World stocks hit one-year highs as Fed hike prospects fade (Reuters)
  • Merkel strikes back, defends migrant policy after election rout (Reuters)

Germans "Lose Faith In Banks", Rush To Buy Safes

First Japan, now German savers are leaving the "security" of savings banks for the true safety of paper cash parked inside home safes, where the central bank's negative rates can never reach. As a result safes across Germany are selling out as German savers finally "lose faith in banks."

Martin Armstrong Questions "Are Central Bankers Coming To A Bitter End?"

Central bankers these days are seriously trapped. They cannot now reverse their policies for that means they have to admit that they have failed. That is far more serious than you might imagine. To even entertain backing down from negative interest rates means they have to admit that Keynesian/Marxist economics has failed and therein socialism, which is based upon the very principle that government can and is capable of managing the economy.

Harvard Professor Demands Ban On $20, $50, $100 Bills

Six months since Larry Summers first suggested "it;'s time to kill the $100 bill," and three months after The ECB actually killed the €500 Note, another Harvard 'scholar' is reinvigorating the war on cash. Amid claims that paper money fuels corruption, terrorism, tax evasion, and illegal immigration, Ken Rogoff (ironically of "It's Different This Time" infamy) says the US should get rid of the $100 bill (and $50s and $20s) proposing, in his words, "a 'less-cash' society, not a cashless one, at least for the foreseeable future."

Generation Screwed Fights Back

“We call ourselves “Generation Screwed” because governments are spending money but leaving the bills behind for the young to pay,” says Gunn. “Apathy is our biggest challenge. Many youth are so burdened with the demands of getting a start in life, they are unaware of the lousy hand they are being dealt.”

IMF Studies Piketty’s Work On Income Inequality, Finds There Is "No Empirical Evidence” To Support Claims

When Thomas Piketty’s "Capital in the 21st Century" came out in 2013, it quickly became a favorite of the political left and neo-Keynesian economists as his findings fit the narrative of increasing income inequality. Paul Krugman said “ Mr. Piketty’s contribution is serious, discourse-changing scholarship in a way most best sellers aren’t.  There may be just one problem with Piketty’s earth-shattering revelation: it appears to be wrong.

Hillary Clinton Is In Deep Trouble: "Hordes Of Wall Street Executives" Descend Upon Philly

We believe Hillary Clinton lost the Presidency this past week. While the explosive DNC leaks will undoubtably have a long lasting effect, this post will barely reference the leaks. Rather, it will explain how recent decisions by the Hillary campaign played right into Trump’s hands by essentially waving a gigantic middle finger to the 73% of Americans who think the country is headed in the wrong direction.

"Policymakers Have Been Calling A 'Depression' A 'Recovery' For Nearly A Decade"

"I'd like to think that logic and reality will prevail; that distaste for being told how great the world is has become sufficiently revolting and obviously false to stir the world’s populace to end the imbalances. But that, again, will take time, perhaps a good deal of time; until then, whenever it hopefully is, central banks continue to operate with impunity even though the risks of their intemperance rise exponentially..."

Alan "Bubbles" Greenspan Returns To Gold

The former Fed chairman says he believes another debt crisis is inevitable. He believes it will lead to high levels of inflation. His solution? Gold: “Now if we went back on the gold standard and we adhered to the actual structure of the gold standard as it exists let’s say, prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the U.S., and that was a golden period of the gold standard.