bonds

There are four ways to reduce real debt burdens: by paying down debts via accumulated savings. by inflating away the value of money. by reneging in part or full on the promise to repay by defaulting by…

The Fed could announce a federal funds target of 3% but the tsunami of excess reserves now out there swamps any conceivable demand, so the federal funds rate would be guaranteed to remain stuck at zero. The target would be meaningless.…

After more than a year since the European debt crisis began, officials have still failed to resolve it. They raised expectations for a “grand bargain” only to crash them on the shoals of political reality. The March 24-25 Summit was to…

This is from the blog Political Irony (hat tip UMKC). Higher consumer price inflation than we see now will probably result in demand destruction and recession before the Fed reacts. The slack in the economy would mean this becomes a…

By L. Randall Wray Washington's deficit hysteria has morphed into gridlock over expansion of federal government debt limits. It is as if that stupid “debt clock” on Times Square had run out of electrons to keep the numbers racing ever…

The resilience of the euro in the face of seemingly incontrovertible evidence that Portugal will need to get assistance and that very same program and approach has not been enough to stabilize the Greek and Irish situation is amazing.…

In my previous missive I concluded that investors should stay true to the principles that have always guided (and should always guide) sensible investment, but I left readers hanging as to what I believe those principles might actually be.…

Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession  (McGraw-Hill, 2009) and "The Coming Collapse of the Municipal Bond…

Ray Dalio spoke to Barron's in an interview that appeared in the weekly this past weekend. The themes of the conversation were the following: The world is on a dual track with emerging markets doing much better than developed…

US dollar remains firm across on the board as risk-off dominates. FOMC meeting unlikely to surprise and Empire manufacturing should remain firm, while German Zew confidence dropped to 14.1, below expectations. Growth-sensitive currencies…