Tag Archives: federal reserve
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
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
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
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
