money

Nothing is so bad, that it isn't good for something. So goes an old adage in my home country (and I would imagine elsewhere too) and perhaps if hard-burdened Eurozone policy makers and investors are finding it hard to find any kind…

Below is an excerpt of a Barron's interview with Bridgewater Associates' Ray Dalio which I first highlighted in February 2009 in A conversation with Bridgewater Associates’ Ray Dalio. Back then I highlighted the first part which…

Long-term interest rates are really a series of short-term rates smashed together. The real reason that the Federal Reserve would lose control over short-term interest rates is because the economy was operating at full capacity and creating…

The design flaw at the heart of the euro zone has become manifest to a variety of market observers, practitioners, economists and journalists.  A fiscal/monetary half-way house divided cannot stand.  That seems to be clear. So…

Frederick 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). The Federal Reserve releases transcripts of the Federal Open Market…

I was reading an interview in Handelsblatt with the EU's Olli Rehn and I found this exchange telling: Handelsblatt: Mr. Commissioner, with yesterday's decision is an EU-debt agency created which issues Euro Bonds? Olli Rehn: I will…

Marshall Auerback here with a post which I originally published at New Deal 2.0. This post on deficits in fiat currency regimes is the second in a series of posts on Modern Monetary Theory. Many market analysts, commentators and economists…

Regular readers know that, while I have a little of what Marshall Auerback calls deficit terrorism in my DNA, I fully support fiscal stimulus as a means to arrest a deep downturn.  The horrendous Keynesian nightmare My move into…

Below is a link to the speech Thomas Hoenig, president of the Reserve Bank of Kansas City, gave today in Santa Fe, NM.  The critical part of his speech was: Under this policy course, the FOMC would initiate sometime soon the…