QT: The Pain Is Just Beginning
The Fed is running behind schedule. According to the Quantitative Tightening (QT) schedule it published last year, the Fed had intended to destroy $50 billion between October, when QT started,
The Government-Induced Liquidity Crisis Could…
The combination of tax cuts and increased government spending – on top of Quantitative Tightening – is set to drain $3 trillion out of the financial markets over the next
Rate Hikes, Quantitative Tightening and Their…
The previous Macro Watch video explained the evolution of US Monetary Policy over the last century by analyzing changes in the composition of the Fed’s assets and liabilities between 1914
The Investors Podcast Interview – Highl…
I recently spoke with Preston Psyh and Stig Brodersen for The Investors Podcast. The feedback from this interview has been fantastic. Preston and Stig ask excellent questions and allow plenty of
The History Of US Monetary Policy – Hig…
It is not possible to understand how the economy and the financial markets work in the 21st Century without understanding how the government conducts Monetary Policy. The first Macro Watch
Speech: Understanding Potential Threats To Tr…
In September, I spoke at the Global Trade Review Conference in Singapore. My topic was Understanding Potential Threats To Trade and Economic Stability In Asia. Macro Watch subscribers can log
Inflation Would Crush The Global Economy
The new Macro Watch video looks at the Credit to GDP ratio for each of the world’s twenty largest economies. We find that credit has been growing faster than the
The Stock Market: Worry Now, Sell Later?
The S&P 500 Index is now 66% above its 2007 pre-crisis peak and 250% above the low it reached in 2009. The market’s cyclically adjusted price-to-earnings ratio is 31 times.
When Stocks Fall, Expect A Recession
As a rule, Credit Growth drives Economic Growth. But that is not the case now. Credit growth is very weak, but the economy grew by 3% during each of the
Japan’s Extraordinary Experiment
The Bank of Japan is creating money and buying up Japanese Government Debt on an unprecedented scale. Thus far, the BOJ has bought up 40% of all Japanese Government Debt
