America’s National Emergency: Part 2
China overtook the United States in Research and Development (R&D) investment last year. Moreover, its lead over the US will widen rapidly during the years immediately ahead if current trends continue. China’s
America’s National Emergency
China surpassed the United States in Research and Development (R&D) investment last year. This constitutes a national emergency for the United States on par with, or greater than, the Soviet
Corporate Sector Concerns
The new Macro Watch video examines the balance sheet and the earnings of the US Corporate Sector. They reveal a number of reasons to be concerned about the Sector’s health. Corporate
Recommended Interview: How Much Will The Fed …
I recently had a particularly interesting conversation with Cris Sheridan of Financial Sense Newshour. I highly recommend it. The topic? The most extraordinary Monetary Policy U-Turn in the Fed’s
Household Wealth and Fed Policy
Business Investment is weak in the United States despite the recent large corporate tax cuts. Household Consumption, however, is holding up. Relatively strong Consumption has enabled the economy to grow
The Repo Crisis and The Fed: Part 4
Quantitative Easing has resumed. On September 17th, overnight interest rates in the Repo Market shot up to 10%, four times higher than they should have been. Problems there infected the Federal
The Repo Crisis and The Fed: Part 3
The Fed is once again creating very large amounts of money and pumping it into the financial markets. So, it is not surprising that all the major US stock market indices
The Repo Crisis and The Fed: Part 2
Monetary Policy is the government’s most important economic policy tool. If you really want to understand how the Fed conducts Monetary Policy, you must understand the Fed’s weekly report on the
The Repo Crisis and The Fed
On September 16th, the interest rate in the overnight Repo Market shot up to nearly 10%. It should have been below 2.25%. There was no shortage of Reserves to lend. There were
Quantitative Easing Round Four
A new round of Quantitative Easing began yesterday when the Fed announced that it would create $60 billion a month to buy US government securities. Although I have long expected
