money

At Bank of England, Carney to put growth at top of list

"The new Governor of the Bank of England has signalled that he will put growth at the heart of his approach to the job and is willing to see higher inflation for longer in order to support the economy. Using the US as an example, Mr Carney said economies needed to be allowed to reach an 'escape velocity' in which they were out of danger of slipping back into recession. That would suggest keeping interest rates lower for longer while considering further quantitative easing, indirect provision of monetary stimulus via the financial system." Continue reading →

Continue ReadingAt Bank of England, Carney to put growth at top of list

Mark Carney Leaves Canada With ‘Stealth QE’ Rising At Fastest Pace Since 2009

"As Mark Carney steps aside from his role at the Bank of Canada to undertake all manner of easy money in the UK, we thought a reflection on the 'stealth' QE that he has been engaged with, very much under the radar, in the US' neighbor-to-the-north was worthwhile. It seems quietly and with little aplomb, Carney's BoC has grown its balance sheet by over 21% YoY - the most since 2009. If that was not enough to make someone nervous, the quantity of Canadian government bonds on the BoC's balance sheet has grown at a remarkable 46% YoY! With Canada's CAD267bn debt due in 2013, we suspect this 'stealth' QE will continue to rise." Continue reading →

Continue ReadingMark Carney Leaves Canada With ‘Stealth QE’ Rising At Fastest Pace Since 2009

Detlev Schlichter: ‘Positive Money’ and the fallacy of the need for a state money producer

"Every injection of new money into the economy, regardless by whom, has to occur at a specific point from where the new money will disperse through a number of transactions. This process must always – from the point of view of a smoothly functioning, uninhibited market economy – lead to disruptions. It can never be neutral and it can certainly never enhance the functioning of the economy, or lead to a better plan-coordination between economic actors. Money injections always lead to arbitrary changes in relative prices, reallocations of resources and redistribution of wealth and income, without ever enhancing the wealth-generating properties of the economy overall." Continue reading →

Continue ReadingDetlev Schlichter: ‘Positive Money’ and the fallacy of the need for a state money producer

Timothy Geithner Accused Of Alerting Banks To 2007 Interest Rate Cut For 2nd Time

"In the summer of 2007, as storm clouds gathered over the world's financial system, then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America and other banks about the possibility the U.S. central bank would lower one of its critical interest rates, according to a senior Fed official. Jeffrey Lacker, the head of the Richmond Fed, originally raised the allegation during a Fed conference call in August 2007, and he stuck to his 5-year-old claim against the current U.S. treasury secretary in a statement provided to Reuters on Friday." Continue reading →

Continue ReadingTimothy Geithner Accused Of Alerting Banks To 2007 Interest Rate Cut For 2nd Time

‘Checkout Fees’ Take Effect, Allowing Retailers To Add 4-Percent Surcharge

"Retailers in 40 U.S. states can now charge up to 4 percent extra when consumers pay for goods and services with a credit card. These so-called 'checkout fees' went into effect Jan. 27, and do not apply to debit card payments. The fees are illegal in California, New York, Texas and seven other states. In 2005, a group of merchants claimed that MasterCard, Visa, and nine other companies including JP Morgan Chase & Co conspired to fix the fees that stores pay to accept credit card purchases. As part of the settlement, the merchants are allowed to charge customers a fee equal to the cost of accepting cards, typically 1.5 percent to 3 percent of the purchase price." Continue reading →

Continue Reading‘Checkout Fees’ Take Effect, Allowing Retailers To Add 4-Percent Surcharge

Peter Schiff on Politics, Precious Metals and President Obama’s Second Term

"Daily Bell: Talk about your father, who is now in jail as a tax protestor. How is he doing? Peter Schiff: He's hanging in there. He's 84. He turns 85 next month. I think he's a political prisoner. He's in jail not because he really violated the law but because he represented a threat to the government's illegal collection of income taxes. So I think it's very unfortunate that my father is in jail and I think it says a lot about the character of our country when we can have a political prisoner." Continue reading →

Continue ReadingPeter Schiff on Politics, Precious Metals and President Obama’s Second Term

The Road to Debt-Serfdom

"The road to debt-serfdom is paved by the banks and enforced by the Central State. If there is any point that is lost on ideologues, Progressive and Conservative alike, it is this: the first-order servitude and second-order tyranny of debt-serfdom can only occur if the banks' power is extended and protected by an expansive Central State." Continue reading →

Continue ReadingThe Road to Debt-Serfdom

Fed Balance Sheet Hits Record $3 Trillion

"The size of the U.S. Federal Reserve's balance sheet reached a record, Fed data released on Thursday showed, due to the central bank's purchases of Treasurys and mortgage-backed securities that are part of its unconventional policy aimed at supporting economic growth. The Fed's ownership of mortgage bonds guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (Ginnie Mae) totaled $983.2 billion, up from $947.61 billion the previous week. The Fed's holdings of Treasurys totaled $1.697 trillion as of Wednesday, higher than $1.689 trillion the previous week." Continue reading →

Continue ReadingFed Balance Sheet Hits Record $3 Trillion