Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Early openers thrashing about: Kiwis +0.6%, Aussies +0.2%, Nikkers -0.5% and Sth Korea -0.7%.
Minimal movement in Aussie sectors: REITS +0.6%, Telecomms +0.4%, Gold flat.
IBM has long been a poster boy for the untoward effects of central bank financial repression. For most of this century the once and faded king of tech has been in a modality of slow liquidation, leveraging up its balance sheet with cheap debt to fund stock buybacks, dividends and accounting-driven two-bit M&A deals. This morning that destructive strategy—–pursued by two…
It wouldn’t be right to let much more time pass before reporting on the new numbers from the Treasury Department showing how much in the way of U.S. government debt is held by foreigners, including by foreign central banks and other arms of foreign governments.
An epidemic of store closings, restructurings, bankruptcies… as the American consumer runs out of options.
I return to the subject today to deal with another angle – the mainstream media’s (MSM) role in upholding this establishment line.
Did a few loose strands of Ebola seep into the organs and tissues of global finance last week? The US equity markets sure enough puked, the Nikkei bled out through its eyeballs, all the collagen melted out of Greek bonds, …
Investors are taught that bear markets can’t occur unless the Treasury yield curve inverts – that is, unless short-term interest rates are higher than long-term interest rates.
And that can only happen if the Federal Reserve raises the Federal Funds rate, which is the short-term rate that the Fed controls.
But that measure may be off the mark this time, and here’s why…