Category Archives: Economy

Why Fed Chair Powell’s a Laughingstock

Powell believes this ”technical adjustment” will compel banks with excess reserves parked at the Fed to pursue better returns elsewhere.  Powell also believes lowering the IOER rate will keep the federal funds rate from deviating above its upper range. Continue reading

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Why a Chernobyl-like Financial Disaster is Inescapable

In the early morning hours of April 26, 1986 – roughly 33 years ago – things went horribly wrong in the town of Pripyat, in northern Soviet Ukraine.  Reactor No. 4 at the V. I. Lenin Nuclear Power Plant, also known as the Chernobyl Nuclear Power Plant, was overwhelmed by an uncontrolled reaction.  There was no stopping it. Continue reading

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Unsolicited Advice to Fed Chair Powell

Behind closed doors, President Trump and Fed Chair Jay Powell are in freak out mode.  President Trump wants lower interest rates and artificial stimulus to fabricate GDP growth into the 2020 election year.  His prospects for a second term in office depend on it. Fed Chair Powell knows the economy’s toast.  Annualized GDP growth for the first quarter of 2019 was recently estimated at just 1.3 percent.  But he cannot yet admit it.  Specifically, he cannot cut rates just yet without triggering a market panic. Continue reading

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As the Madness Turns

This is the mad world we live in. A world that will only get madder as policies of desperation are rolled out in earnest to keep the price of money cheap, the price of assets high, and the government swindlers in Washington flush with money borrowed on the backs of the unborn. But make no mistake, this madness will turn. First it will turn to fear, then to anger, and then to death… Continue reading

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