Monetary Policy

After 2018, the US economy was already headed toward a recession. But bailouts and lockdowns have made things even worse.

The EU has now become essentially a makeshift, lawless regime designed to prop up bankrupt states. So much so, in fact, that even the German supreme court has become alarmed.

Why would an investor buy a bond that pays a negative interest rate? The answer lies in understanding how central banks manipulate the economy.

Why would an investor buy a bond that pays a negative interest rate? The answer lies in understanding how central banks manipulate the economy.

Rather than spurring real economic gains, the Federal Reserve’s unorthodox QE program has supported and extended the debt grid and generated asset exuberance. But this can only go on as long as there's capacity for more debt.

No matter what levers are pulled by the fiscal and monetary authorities, stones will not be turned into bread.

More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.

More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.

Debt-ridden countries such as Italy will come to rely more and more on Germans and other northern Europeans to finance their debt. This will require a more unified Europe. Or the whole thing may collapse.