Category Archives: UK Treasury

Bank of England, Bitcoin, BOJ, Budget, Central banks, Commodities, CPI, Crypto, ECB, Emerging Markets, Equities, Europe, Federal Reserve, Fiscal policy, Fixed Income, Government, Inflation, Japan, Keynesianism, Macro, Metals, money supply, Politics, Production, Revenues, Tech, UK, UK Treasury, US Treasury, USA

Burning Holes in Idlers’ Pockets

Posted on by Sean Corrigan

Inflation, Milton Friedman famously said, is a monetary phenomenon. But it is also one given the readiest of outlets through recourse to what we call ‘fiscal’ policy – i.e., by spendthrift governments borrowing money created at their call and forced into the system by means of warfare, welfare, contracting, cronyism, bureaucratic expansion and plain old boondogglery. Arguably, this is where we find ourselves today, in a world where supply is no longer likely to meet demand as abundantly and as effortlessly as has been the case these past twenty years.

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Bank of England, BOE, Bonds, Central banks, Corporatism, Credit, ECB, Europe, Federal Reserve, Fiscal policy, Fixed Income, Inflation, Macro, MMT, Money, Planning, Politics, QE, UK Treasury, US Treasury, USA

Tighten Your Belts: The Rationale

Posted on by Sean Corrigan

Markets seem happy for now to focus on the carrot of a vaccine while ignoring the stick of the further severe restrictions to life and liberty being implemented while we await its delivery. Whether or not it offers a release from bondage, the state’s rediscovered taste for authoritarianism will, however, take some good time to dispel, while its corollary – the move toward taking an ever greater role amid the wreckage of the private economy – is being pursued with relish. Whatever the sloganizing, this is very unlikely to Build anything Back Better – only dearer and scarcer.

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Bank of England, Budget, Central banks, Economics, Fiscal policy, Fixed Income, Forex, Government, Inflation, Intervention, money supply, Revenues, UK, UK Treasury

A Great Deal of Ruin

Posted on by Sean Corrigan

The Johnson government’s approach to COVID19 has been a toxic mix of contradiction, vacillation, and jackbooted authoritarianism. There seems no exit strategy and no end to the spiralling cost. We take a critical look at the impact on the budget impact and discuss what it means for inflation.

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Bank of England, Central banks, COVID19, CPI, ECB, Economics, Federal Reserve, Fiscal policy, Government, Inflation, Japan, MMT, Money, Productivity, UK Treasury, US Treasury, Wages

After the Fall of Caffa

Posted on by Sean Corrigan

While politicians anxiously check the shifting weather-vanes of public opinion and scientists squabble over facts as well as interpretations, central banks are resolutely doing what they do best – wildly exceeding their briefs and trying to drown all problems in a flood of newly-created money. As ever, the underconsumptionists worry that a lack of demand will usher in deflation, in spite of all such efforts. Some of us, however, worry more about what it will do to supply. Here, we explain why.

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Bonds, Central banks, Credit, Federal Reserve, Fixed Income, futures, Hedge Funds, High Yield, Money, Primary Dealers, repo, UK Treasury, Volatility, Yield Curve

Overstretch

Posted on by Sean Corrigan
21
Feb

Markets have paradoxically both been on edge – and in the throes of euphoria – since the repo shock in mid-September, being at the same time alarmed and yet strangely reassured by the Fed’s frantic backpedalling and the $400+ billion boost to its balance sheet which this entailed. Extreme levels of overstretch are everywhere apparent.

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