The Repo Crisis and The Fed: Part 2
Posted November 15, 2019
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
Category Archives: Economics in the Age of Fiat Money
The Repo Crisis and The Fed
Posted November 13, 2019
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
Quantitative Easing Round Four
Posted October 12, 2019
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.
Expect More Rate Cuts
Posted September 29, 2019
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
Interview: The Future Of Monetary Policy
Posted September 19, 2019
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.
Dalio vs. Mauldin: The Great Debate – Part 3
Posted September 6, 2019
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
Dalio vs. Mauldin: The Great Debate – Part 2
Posted August 22, 2019
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
How The US Can Win The Currency War
Posted August 13, 2019
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
Financial Sense Interview: Highly Recommended
Posted August 9, 2019
Capitalism didn’t exactly die. It just evolved into a very different kind of economic system: Creditism. I discussed the evolution of Capitalism into Creditism recently with
Ray Dalio vs. John Mauldin: The Great Debate
Posted August 3, 2019
An extraordinarily important debate has taken place between two of the world’s most influential economic thinkers: Ray Dalio, the founder of the legendary hedge fund,
Robert Kiyosaki Interview
Posted July 5, 2019
Robert Kiyosaki is one of the best-selling authors of all time. His first book, Rich Dad Poor Dad, has sold more than 32 million copies.
The Fed Is A Hostage Of The S&P 500
Posted June 24, 2019
The S&P 500 closed at a record high last week, while Gold hit a five-year high. Stocks and gold spiked because a very rapid slowdown in
The Yield Crash Signals Pain Ahead
Posted June 5, 2019
The collapse in Government Bond Yields during May was a clear signal that investors are afraid the stock market may be headed significantly lower. The
What Are Bank Reserves?
Posted May 23, 2019
When the crisis of 2008 began, the Reserves that commercial banks hold in their accounts at the Fed soared from $21 billion in 2007 to
The US-China Trade War Heats Up
Posted May 15, 2019
With the US-China trade war heating up, it is important to understand what is at stake. This blog post provides a list of the most
Seigniorage: Simple, Short and $1.7 Trillion Sweet
Posted May 9, 2019
The new Macro Watch video describes the enormous windfall profits the US Government and, therefore, US taxpayers earn as the result of Seigniorage every year.
Looser Monetary Policy Will Be Required
Posted April 25, 2019
As recently as 1969, US savings were sufficient to fund all US debt. How things have changed. Last year, the US had only enough savings to finance
Expect Fed Rate Cuts This Year
Posted April 11, 2019
Credit Growth drives Economic Growth. But the United States doesn’t save enough to finance all that it borrows. It hasn’t for a very long time. To finance
Credit Growth, Asset Prices and The Fed
Posted March 28, 2019
Between 1980 and 2008, Credit Growth drove Economic Growth. The ratio of Total Credit to GDP soared from 170% in 1980 to 370% in 2008. Since 2008,
The Tech Giants: Part Two
Posted February 28, 2019
This video is the second in a series looking at the largest US tech giants ranked by R&D Investment. Part One covered Amazon, Alphabet and