Tag Archives: federal reserve

Fed Chair Powell’s Plan to Pickle the Economy

Once a cucumber becomes a pickle it can never be a cucumber again. Indeed, financial markets have been pickled over to no end. What’s more, Fed Chair Powell’s efforts to unpickle QE were met with howls from the President, Wall Street, and Larry Kudlow. Continue reading

Posted in Economy, MN Gordon | Tagged , , , , | 2 Comments

The Ugly End of Globalization

About this time, something even more historic happened.  Roughly one billion Chinese workers, who were willing to work for less than peanuts, joined the global workforce.  As a result, the U.S. was able to export its inflation – and jobs – to China and other emerging economies over the next three decades. Continue reading

Posted in Inflation, MN Gordon | Tagged , , , , | 25 Comments

Workers of the World, Unite!

Several decades of perpetual credit creation courtesy of the Fed’s artificially low interest rates have had countless unintended consequences for the global economy. In short, the economy’s reconfigured itself in ways it otherwise wouldn’t have. One example is the offshoring of U.S. jobs to China and the massive trade imbalance between the two countries. Continue reading

Posted in Inflation, MN Gordon | Tagged , , , , | 20 Comments

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

Posted in Economy, MN Gordon | Tagged , , , , | 4 Comments