Chinese Monetary Policy, Part 1: Transforming The World
Posted August 17, 2018
Between 1990 and 2014, the People’s Bank Of China created RMB 28 trillion, the equivalent of more than US$4 trillion. What the central bank did
Category Archives: Economics in the Age of Fiat Money
Trade War Part 3: If China Fights Back
Posted August 1, 2018
It is inconceivable that China would submit to President Trump’s demands that China reduce its trade surplus with the US by $200 billion per year.
Trade War Part 2: If China Capitulates
Posted July 24, 2018
President Trump has threatened to impose trade tariffs on all $500 billion worth of goods that China exports to the US each year unless China
US-China Trade War: On The Brink
Posted July 21, 2018
President Trump believes China poses a grave threat to the United States. His demands for trade concessions from China are designed to eliminate that threat.
QE In Europe Is Ending – Beware
Posted June 28, 2018
The ECB has announced that it plans to reduce its Quantitative Easing program from €30 billion per month now to €15 billion per month in
The Bank Of Japan Goes Ballistic
Posted June 23, 2018
Ballistic is not a word normally associated with Monetary Policy. However, it is the ideal adjective to describe the conduct of Japanese Monetary Policy over
The BOJ’s Radical Experiment
Posted June 2, 2018
Monetary Policy in Japan is RADICALLY AGGRESSIVE. Over the last five year, Japan’s Monetary Base has expanded by three and a half times. The Bank
What You Need To Know About The US Government’s Budget Deficits And Debt
Posted May 17, 2018
The latest Macro Watch video provides a quick overview of everything you need to know about the US government’s budget and debt, including: The source
Less Savings, More Debt, Increasing Vulnerabilities
Posted May 3, 2018
Total debt in the United States increased by $2.6 trillion last year. This year it will increase by roughly $2.9 trillion. For every debtor, there is
Weak Credit Growth Leaves The Economy Vulnerable
Posted April 18, 2018
When credit growth is weak, the United States falls into recession. Between 1952 and 2008, there were only nine years when total credit (adjusted for inflation)
The Money Revolution
Posted March 14, 2018
In order to understand how the economy and the financial markets really work today, it is necessary to understand Money. Not many people do. In
QT: The Pain Is Just Beginning
Posted March 1, 2018
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
The Government-Induced Liquidity Crisis Could Crush The Markets
Posted February 12, 2018
The combination of tax cuts and increased government spending – on top of Quantitative Tightening – is set to drain $3 trillion out of the
Rate Hikes, Quantitative Tightening and Their Consequences
Posted January 31, 2018
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
The Investors Podcast Interview – Highly Recommended
Posted January 25, 2018
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
The History Of US Monetary Policy – Highly Recommended
Posted January 14, 2018
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
Speech: Understanding Potential Threats To Trade and Economic Stability In Asia
Posted December 29, 2017
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.
Inflation Would Crush The Global Economy
Posted December 14, 2017
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
The Stock Market: Worry Now, Sell Later?
Posted November 30, 2017
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
When Stocks Fall, Expect A Recession
Posted November 16, 2017
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