Larry Summers

Kuroda Defends BOJ Credibility, Mocks Fed And IMF Economists

This past Saturday October 8th, Bank of Japan Governor Haruhiko “Peter Pan” Kuroda delivered some prepared remarks on its new QQE with yield control (see here and here) at the Brookings Institute in Washington DC. The conference was attended by "luminaries" like Jeffries’ David Zervos, Princeton economist and Hillary supporter Alan Blinder, as well as many members of the press.

Recession Now... Or Depression Later

Currently economists and market watchers roughly fall into two camps: Those who believe that the Federal Reserve must begin raising interest rates now so that it will have enough rate cutting firepower to fight the next recession, and those who believe that raising rates now will simply precipitate an immediate recession and force the Fed into battle without the tools it has traditionally used to stimulate growth. Both camps are delusional, but for different reasons.

Hillary: Deceit, Debt, & Delusions (Part 1)

Despite overwhelming factual evidence that crackpot Keynesian spending machinations; debasing the currency; interest rate manipulation; globalization; perpetual war; incurring unpayable levels of debt; making $200 trillion of unfunded welfare promises; has created a seething anger across the land, Hillary Clinton and her establishment flunkies propose doubling down on those same failed policies.

Never. Been. Higher.

"...am I in any way reassured that the Fed sees no bubbles? No, I am not. These dudes will never identify an asset bubble - at least before the event!"

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.