We can't rule out the possibility that, at some point in the next few years, our economy will slow, perhaps significantly. How would the Federal Reserve respond? What tools remain in the monetary toolbox? In this and a subsequent post, I discuss some policy options the Fed might consider, focusing first on negative interest rates.Read More »
“Helicopter” Money & Negative Interest Rates Are On the Horizon
As the ripple effect of the COVID-19 pandemic rages on, central banks have been quick to act in slashing interest rates. However, with rates already sitting at historic lows before the crisis, it is possible that banks may be forced to employ more unconventional and controversial techniques to try and calm the economy as time goes on.Read More »
These 39 States Don’t Have Enough Money To Pay Their Bills
The 11th annual Financial State of the States report, a nationwide analysis of the most recent state government financial information - completed prior to the coronavirus pandemic - has just been released and it found that 39 states did not have enough money to pay all of their bills.Read More »
Debt Default Only Way Out For U.S.
The next downward move in stocks will have central banks running to the rescue. Virtually every country will need to go negative with interest rates which will set off a chain of events that will change the world and the global financial systems. Here’s the playbook on how I believe this will all play out:Read More »
A Debt Jubilee: It Sounds Like A Good Idea BUT…
Americans, and governments across the world, have more debt than they can ever hope to repay and that's why a number of public figures are suggesting a radical and ancient solution; a debt jubilee...Read More »
How Come the U.S. Gov’t Paid Less Interest Expense On $3T More Debt?
How did the U.S. Government get away with paying less interest expense on $3 trillion more debt?? Here's how.Read More »
The Federal Reserve Literally Makes Money – Here’s How
The Federal Reserve has vowed to provide up to US$2.3 trillion in lending to support households, employers, financial markets and state and local governments struggling as a result of COVID-19 and corresponding stay-at-home orders...[but] very little of the Fed’s money actually comes from taxpayers or sales of government bonds. Most of it, in fact, emerges right out of thin air.Read More »
Stash Some Cash In a Foreign Bank! Here’s Why, Where and How (+3K Views)
Where abroad? In Scandinavia. Why? To seek refuge from currencies like EUR, USD, CHF, and GBP and diversify your political risk and secure your savings. How? Read on. This article explains why countries and specific banks in Scandinavia deserve your consideration as safe and reliable places to stash some cash abroad.Read More »
What Are the Implications of Long-Term Rates Dropping To 0%?
Please take or leave what I am about to say as you like.Read More »
Modern Monetary Theory: If you read only one post all year, this is the one (+2K Views)
If you read only one post all year, this is the one I want you to read. I think it’s that important so please take some time to learn about Modern Monetary Theory.Read More »