The ECB decided to cut interest rates by 25 basis points on the same day it raised its own inflation estimates for 2024 and 2025. If anyone wants irrefutable proof of the lack of independence of central banks, this is it. The ECB has only one mandate, price stability, and it has violated it for …
Tag: inflation
Central banks are creating poverty with real estate, stock and over-indebtedness ‘bubbles’
Due to loose monetary policy (quantitative easing), financial assets appreciate without being supported by proper fundamentals while real estate becomes investment vehicles and the lower income strata are excluded from ownership. Despite what the conventional narrative about the economy holds, central bank monetary policies are a form of distortive government intervention in the economy. Their …
Gold is the only lifeline from inflation – Inflation is implicit government bankruptcy
The money supply (the M2 index) in the US is rising again and persistent inflation is no longer a surprise. Price inflation occurs when the quantity of currency increases significantly above private sector demand. For investors, the worst decision in this currency disaster environment is to invest in government bonds and hold cash. The destruction …
The FED is sacrificing inflation to keep the bond market from collapsing
The US Federal Reserve is in a race to prevent an imminent collapse in the US government bond market. High US debt yields are artificially kept at these levels as the Fed maintains demand by increasing the money supply in the economy – that is, by printing dollars and trying to control the bond yield …
White House pushes FED for rate cuts and blows up 2% inflation target – Trump’s plan
New York Federal Reserve President John Williams said in a politically charged statement on Friday (5/3) that the US central bank needs independence from the White House in order to return inflation to its 2% target. The election cycle threatens the independence of monetary policy as pressure mounts for interest rate cuts to ease lending …
The vicious economic cycle continues
The fact that the Federal Reserve left interest rates unchanged, in the range of 5.25% – 5.5%, was of no concern to US stocks. On the other hand, he continues, the promise not to reduce them and to continue monetary tightening exerted downward pressure on bond yields, with the yield of the 2nd falling by …
Inflation – Recession nightmare returns for stockholders
Journalists in the financial press often speak of a Goldilocks economy (“not too hot, not too cold”) in tribute to the Fed’s finesse in manipulating interest rates. They also use the term “soft landing” because the Fed is supposed to manage to tame inflation without causing a recession. However, these narratives, in fact, have no …
The mistakes of the US Federal Reserve may trigger a new wave of inflation
The mistakes of the US Federal Reserve (Fed), which seems to be acting as an “extension” of the fiscal policy of the Democrats and the Joe Biden administration, will lead to an even greater erosion of the purchasing power of citizens through a spike in inflation. 1. The Bernanke-led Fed began quantitative easing just three …
Inflation persistent
With monetary and economic policy deadlocked, the White House is now officially throwing in the towel and admitting that the fight against inflation has been lost – almost ruling out monetary easing as evidenced by the fact that the Federal Reserve Reserve despite strong political pressures due to the election cycle kept interest rates unchanged. …
Hard austerity is coming with over-indebtedness and high inflation
The era of low interest rates and “easy money” is over, despite the dominant narrative in the international financial press of a new round of monetary policy easing that will return economies to pre-pandemic health crisis status and the prophecies of monetary policy makers policy that set the benchmark for monetary policy easing next June …