There has been much head-scratching of late as to why, with interest rates lower than they have been since the Universe first exploded out of the Void, businesses are not undertaking any where near as much investment as that hoped for beforehand by the academic cabal whose ‘effective demand’ and ‘transmission channel’ fixations have helped drive […]
Category Archives: Money
The old Wall St. adage runs that ‘stocks are not bought, they are sold’, but the idea here is that they are sold to eager acquirers and that the act of selling does not therefore depress the price too much. The same cannot be said of what we have experienced these past six weeks or […]
Please read on for a little light Christmas cheer, with apologies to the spirit of Henry Wadsworth Longfellow.
Those of us who have not been stuck on Mars for the past five years, tending our potato patch, will be dimly aware that the Grand Mages of the economic world – the central bankers – have been manfully searching their spell-books and bubbling their alembics in order to exorcise the dreaded demon of Deflation […]
We are in danger of being blinded by semiotics and so losing sight of substance. We are so convinced that the medium IS the message that we have forgotten to seek for the meaning it is supposed to convey. We have given in to the quack doctors and their unscientific theories of humours in the […]
Seemingly oblivious to the idea of ‘purdah’ – a period of dignified silence to be observed in the run up to the taking of policy decisions—the ECB’s Chief Economist, Peter Praet, felt able to give AFP a wide-ranging interview this week and truly remarkable it was, too.
To the delight of everyone with a vested interest in the continuance of the global central bank bubble, the latest data round from China revealed that, in the past four months, the cumulative total of new RMB loans in China has set a major new high, amounting to no less than CNY4.6 trillion—a number 50% […]
Gloom and doom are starting to spread, despite the increasingly hollow-sounding reassurances being provided on an uninterrupted basis by nearly every central banker who comes within hailing distance of a microphone. [Extracted from ‘Midweek Macro Musings‘, Click Here for details]
With regard to the vexed issue of the renminbi, let’s focus on the basics. The official response to July’s stock market collapse saw loans to non-bank financials (the PPT) rise CNY891bln. Many of the recipients, the bailees, took their funds and either moved them abroad or paid back external loans, causing a record CNY242bln efflux.
Since the spring of 2014, the euro has lost around a quarter of its value, Mario Draghi has finally joined the Big Boy’s League by launching his own, decidedly belated version of QE, and—everywhere but in poor, benighted Greece—the growth of the money supply has been bordering on the explosive.