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
Expect More Rate Cuts
Credit Growth in the United States has been the most important driver of economic growth for decades, so it is important to monitor it closely. If it expands by less than
Interview: The Future Of Monetary Policy
I recently discussed the future of Monetary Policy with Hunter Thompson, the host of the Cash Flow Connections podcast. It was an interesting and timely conversation. This week, the Fed injected
Dalio vs. Mauldin: The Great Debate – P…
Ray Dalio is the founder of Bridgewater Associates, the world’s largest and most successful hedge fund. In May, he published a paper called “It’s Time to Look More Carefully at “Monetary
Dalio vs. Mauldin: The Great Debate – P…
A debate that could determine whether our economic future is prosperous or impoverished has taken place between Ray Dalio and John Mauldin, two of the world’s most influential economic thinkers.
How The US Can Win The Currency War
On August 5th, the Chinese Yuan fell below Yuan 7 per Dollar for the first time in eleven years. Later that day the US Treasury Department designated China a currency manipulator.
