Category Archives: Federal Reserve

The Fed Backfires: Shock and Awe Rate Drop to 0%, Emergency Bond Buying Program Leads to Limit Down Drops in US Equity Futures as Real World Coronavirus Damage Worsens

The Fed just told everyone to assume the brace position.

After Bloody Day, Coronavirus Meltdown Continues. Big Danger: Italian and Eurobanks Are Set To Blow

So many coronavirus panics that a looming risk is getting little notice: implosion of Italy’s banks, a potential Credit Anstalt event.

Coronavirus Reveals the Cracks in Globalization

Coronavirus risks a series of shortages that can be mitigated only by bringing some production back home.

Coronavirus: Bracing for the Economic Shockwave

The coronavirus spread is setting up a nasty real economy-financial system contraction.

Debt Has Not Been Caused by Low Interest Rates, but Higher Rates Would Topple the Whole World Economy

Yet more official hand-wringing about interest rates…when they aren’t the core economic problem.

Sweden Retreats from Negative Interest Rate Experiment

Sweden throws in the towel on its negative interest rate policy as inflation stays stubbornly low.

Misunderstanding Volcker

A reappraisal of Volcker, who was more hostile to workers and less hard on financiers than the press would have you believe.

Repo Madness: Fed Plumbing Gone Awry

How the Fed’s fingerprints are all over the repo mess.

Wolf Richter: The Fed Slaps Down Negative Interest Rates

The first major discussion of negative interest rates recounted in the FOMC minutes show serious disapproval.

How the Fed Boosts the 1%: Even the Upper Middle Class Loses Share of Household Wealth to the 1%. Bottom Half Gets Screwed

It is bizarre to see the Fed present data showing the Gilded Age level of wealth accumulation by the 1% as if that were a badge of honor.

The People’s Money (Part 1)

An explanation of the Federal Reserve money system.

Long Term Real Interest Rates Fell Below Zero in all Euro Area Countries

Is praise of negative real interest rates in Europe making a virtue out of (mis)perceived necessity?

Mark Carney’s Trojan Unicorn — Are Central Banks Considering Stealth Nationalization in Sovereign Digital Currencies?

Mark Carney talks about digital soverign currencies. But is he really describing nationalization? And if so, whither the commercial banks?

The End of Super Imperialism?

Bank of England Governor Mark Carney’s proposal to invent to replace the US dollar as the key reserve currency with a “synthetic hegemonic currency.”

The Fed Has Not Covered Itself in Glory: Fed Funds Mess Edition

Why the Fed should be embarrassed.