Monday, July 29, 2019

Learn Economics Topic Twenty Two

22. Japan and Perpetual Bonds:

Are Perpetual Bonds Helicopter Money? The New Japanese Plan

The BoJ and Ben Bernanke have discussed the government of Japan issuing perpetual bonds. The media has said these bonds are helicopter money. 

Is Japan Falling Back Into Deflation? Only One Monetary Solution Left

Pundits in Japan are giving up on monetary policy as deflation once again rears its ugly head. But there is one more thing that the BoJ could try before giving up expanding the money supply through monetary means.

Japan Is Practicing Tranche Warfare. Abe Is Frightened!

Japanese banks are desperate for yield. But this time tranche warfare may be getting them into big trouble.

Where Does Japan's Economy Stand?

Is the Japanese economy sustainable? So far, monetary policy has proven successful, with help wanted signs out everywhere. What can monetary policy do to continue the boom?
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Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Tuesday, July 16, 2019

Learn Economics Topic Twenty One

21.  Negative Interest Rates

Negative Interest Rates and Why Banks Want Fannie and Freddie

As of now, the market monetarist wish for the US Fed, to charge interest on excess reserves, rather than pay it out, would likely not push interest rates in the interbank lending market up as hoped.

Summers and Roubini Talk Negative Interest Rates, Sound Logic But Uncharted Waters

Negative interest rates may be the only way to help the economy in the next downturn. And negative interest rates make treasury bonds look ugly to retired guys but pretty to Wall Street as collateral for derivatives deals. Economists are madmen..

MM Boys and Tight Money. Market Monetarist Terms Listed for You

A list of terms relating to Market Monetarist positions is provided here. What is it they want the Fed to do? It is certainly more than what is being done now. And it is controversial.

Clearing Up Negative Interest Rate Confusion. Kocherlakota Weighs In

Confusion exists in many articles about negative interest rates. I try to simplify and clear up the differences in the application of rates based on different economists' views.

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Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Tuesday, July 9, 2019

Learn Economics Topic Twenty

20. Bond Demand:

Everyone Said Bond Yields Would Go Up After QE Ended

Everyone jumped on the bandwagon of higher interest rates, after QE ended. Some have no understanding of new bond demand even now.

Blackrock: Cap on Yields Because of Monumental Bond Demand

So, the return to normal is dubious. Tantrums frighten some into selling the bonds, since monetary theory says rates will rise and you need to be in cash and not in bonds when rates are low.

Economists Reveal Massive Market Forces in Bonds Before and After QE

The interest rate on Treasuries is lower than it would otherwise have to be because part of the demand for Treasuries comes from their use as safe debt. Treasuries are essentially money.

Fed Weakness, Future Insatiable Bond Demand with Short Supply

Insatiable demand for long bonds will continue with implications for Fed weakness or strength down the road. Can the financial system be changed or will it roll down hill toward zero bound in the next downturn?

Keeping Interest Rates Low Is a Function of Demand, Not of Politics

While the Fed certainly created an atmosphere in which interest rates can remain low, it does not keep long rates low. Proof that the Fed does not keep bond yields down in a manipulative fashion is the affect ending QE had.

Greenspan on Yields, Slow Growth and Hyperinflation

One could say that Greenspan's efforts to undermine bond collateral by seeking higher yields is a conundrum in itself.


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Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Sunday, July 7, 2019

Learn Economics Topic Nineteen

19. Self Driving Cars:

Top Ten Reasons Self Driving Cars Are Useless

Would you buy a car that stops when it feels like doing so, at your peril? Would you buy a car that makes you less attentive, which puts you at greater risk? Self Driving auto inventors apparently want the gullible public to buy dangerous cars.

Dreadful News Regarding Self Driving Cars

Two troubling developments in the research and creation of driverless cars are explored. The potential scope of control of driverless technology by government and business is discussed.

The Waymo Tesla Self Driving Con

In this article, the technology that is required to really make a car self driving is explored. I believe the reader will be shocked at the high bar that is necessary to achieve self driving lift off.

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Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Wednesday, June 26, 2019

Learn Economics Topic Eighteen


A central bank policy that attempts to fix all the nations with one policy has failed. The UK wants its GDP to grow, so it makes no sense to adopt the Euro.


A fifth of total banking activity in the entire world is booked in the UK. Derivatives and clearing houses and OTC trading is centered in London; how will Brexit affect the City of London?

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Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Tuesday, June 25, 2019

Learn Economics Topic Seventeen

17. Eurodollars, Repos, and Jeffrey P Snider:

Fed and Trump Fail the Eurodollar

The Eurodollar market is all about US dollars. It is being starved of liquidity, which will hurt US trade. It could cause the dollar to rise as dollar shortages become the norm worldwide.

Unstable Repos and the London Connection

Repo fails are a sign of financialism gone bad. London is the seat of this financialization, which generates wild profits while the real economies of the western world continue to languish. Jeffrey P. Snider's look into repo fails is quite revealing.

Scarcity and the Hoarding of Bonds as Gold in Repo

The pressing question regarding the repo markets centers on collateral demand and scarcity. How much real and potential demand is there for sovereign bonds, used as collateral for all sorts of financial markets?

Repo Watch Looking for the Next Economic Crisis

Repo watching is an important economic indicator. If repos don't roll over, credit freezes up. It is sort of like looking at a giant glacier, waiting for the big collapse on the edges.


The essence of Jeffrey P. Snider's thesis is that yes, the Fed expanded its balance sheet after the Great Recession, and it did QE. But it did not fix the broken Eurodollar system and even from 2008 through 2018, there has been a chronic shortage of Eurodollars. It did not really allow full recovery. Therefore, shrinking the balance sheet now is a deflationary danger confronting the financial system in 2018 and perhaps going forward.


______________________________________________


Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)

Sunday, June 23, 2019

Learn Economics Topic Sixteen

16. Reserve Currency and Triffin Paradox:

Henry Kissinger Schools Mercantilist Trump About Reserve Currency

Most of Trump's advisers are mercantilists. It will be necessary to watch the impact they have on Donald Trump's efforts to make "America great again" in the age of the American reserve currency.

Does Donald Trump Want a Financial Depression?

The disturbing issue for me is that the Austrian Economists who are influencing the administration do not believe that a financial depression is that big of a deal. The concept of the strong dollar under Trump also has to be addressed.

______________________________


Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.


While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

Additional Resources:

Talkmarkets Homepage

Talkmarkets New Educational Center (Free to Join!) 

Gary Anderson Talkmarkets Personal Blog (Non Vetted Posts)

Gary Anderson Talkmarkets Articles (Vetted Articles Listed by Date of Publication)