Jun 222013

We have not seen this movie before. We do not know how it ends. Unwinding the Fed’s Quantitative Easing (QE) programs and central banks’ near-zero interest policies (N-ZIRP), now in Year 5, were never going to be easy. But these have to be done eventually. The repression of interest rates [continue reading . . . ]

Dec 122012
Printing more will do what, exactly?

So we have just started Year 5 of N-ZIRP, the Fed’s near-zero-interest-rate policy, and it is working so well that the Fed will have to keep printing money. What’s wrong with this picture? In fact, despite a massive expansion of the Fed’s balance sheet, and some of the lowest interest [continue reading . . . ]