Vandals and Knaves
Producer price increases lead to consumer price increases later. So, the Fed will have to stick with its rate hikes. And higher rates are bound to cause consumers and businesses to make cutbacks (aka ‘recession’).
Macroeconomics: Global Central Banks News & Highlights
Anxiety Levels Are Quietly Rising
The many economic factors at play right now have raised anxiety levels a notch or two…especially for millennials with mortgages. The anger with Phil Lowe is palpable. “He lied to us” is a common theme. And those with savings — who are beneficiaries of rising rates — are also unsettled. I’ve not witnessed this level of concern for a number of years. Protecting capital looks like everyone’s top priority right now…
Why You Should Care about the Neutral Rate of Interest
My challenge today is to make you care about the neutral rate of interest. I want to persuade you that the neutral rate of interest matters for stocks and the economy.
American Hegemon
What will the future bring? We’ve read no more of tomorrow’s headlines than you have. But it looks like the US’s wars and sanctions may be breeding the next lead dog. Empires have to die somehow. Inflation and war are time-tested ways to kill them.
Just Say No!
Why do we have inflation? It’s a choice, right? Policymakers choose it as a way of financing their spending. And a single word would stop it — no. As in ‘no more money printing…no more ultra-low interest rates…no more budget deficits’
Russia’s Shadow Fleet
These headlines tell us what sanctions have wrought; they’ve caused a ‘Pivot to Asia’. And now, a whole new ballgame is taking shape.
