Thursday, October 3, 2019

Learn Economics Topic Twenty Four

24. Economic Alchemy (Turning Lead Into Gold):

Keep in mind that scarcity of bonds happens when there simply aren't enough of them. Big deficits like Trump deficits create a different problem, a surplus of bonds, and/or a lack of cash, either due to systemic errors or due to banker shenanigans. However, to be clear, as we approach the zero lower bound, the problems for banks will increase, and they are fighting to stop the relentless flow toward negative interest rates. 

The Derivatives Monster Creates a Bull From Capital, Not Labor

As we approach zero lower bound toward negative interest rates, there is a dangerous combination of bank weakness and extra slow growth that will result. Siphoning off capital takes place as interest rates generally decline, and it is a dangerous game.

Will the Fed and Central Bankers Give Up Alchemy to Save the World?

The Fed and central banks engage in alchemy. You can see that it really works but it hurts the real society, and central banks need to give up this magical power. But will they?

The False Economy; R-Star Estimates Bleak

[President Donald Trump changed his mind from what was originally written in this article. He has gone for lower and lower interest rates, which are really a slow growth trap as we approach zero and negative rates. They only keep stocks going. But the original description was]: The discussion about the Fed policy is significant if only to illustrate that raising rates at the low end has had little effect on the long bond due to Greenspan's "conundrum."

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.

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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)

Thursday, September 5, 2019

Learn Economics Topic Twenty Three

23. Modern Monetary Theory (MMT):

Modern Monetary Theory and Its Bad Assumptions

Modern Monetary Theory, or MMT, makes assumptions that are simply not valid. Modification is in order.

Is the Fusion of MMT and the Green New Deal Creating a Cult?

The fusion of MMT with the Green New Deal compels followers of both to seek changes that will trample the rights of many.

Fed Will Crush Trumponomics and MMT--Bond Yields Capped

The Fed deals with Trump spending mania on the right (Trumponomics), and will do so if necessary, with Modern Monetary Theory (MMT) wanting to spend to oblivion on the far left.


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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)

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.

______________________________



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?

____________________________________


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:

The Derivatives Monster Creates a Bull From Capital, Not Labor

Siphoning off capital takes place as interest rates generally decline, and it is a dangerous game.

Why Did the Fed Turn Dovish? Not Just Trump
One could almost say that keeping business cycles going is a sign of economic weakness! The Fed fears the pain of a downturn on the banks and counterparties. Barely over 40 percent of all derivatives trade through clearinghouses.

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)

Sunday, June 16, 2019

Learn Economics Topic Fifteen

15. Sovereignty and Cashlessness: 

Banks Close in Rural Areas as World Cashlessness Advances

A look at world experience with cashlessness so far, and prospects for future economic and moral problems.

Larry Summers 100 Dollar Bill Ban and Westfalia Lost

Westphalia as a concept is superior to empire. Our freedoms are more likely to be honored in a system of national sovereignty. Larry Summers is attacking that sovereignty as a representative of a global financial system.

Miles Kimball's Sneaky Way of Destroying Cash

Zero is more important than most Americans understand. It is time that we do understand why it is important and why those who want to destroy it are so sneaky in their advocacy against zero.

Riksbank: Cash Must Be a Protected Legal Right for Good Reason

There is an economic reason that cash must be a protected legal right. The health of your nation's GDP could depend on it.


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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)

Monday, June 10, 2019

Learn Economics Topic Fourteen

14. Trump and Rural America:

Trump Cannot Easily Fix Rural America: Here's Why

Donald Trump campaigned on being able to give hope to rural America. But his task is monumental.

Donald Trump Was Elected by Farmers and They Are Worried

Farmers believe they put Donald Trump in office, yet Trump is favoring industry ahead of agriculture.

Suicide Watch: Farmers Are Hurting Mr. Trump

Donald Trump is putting farmers on the front line with trade. There is a mental health danger discussed below as well as farmers being subject to demand shocks that come with trade uncertainty.


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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)