Home / Federal Reserve

Peak Debt and the Looming Crash

Written by Gary North on May 2, 2015

FRED-Debt-to-Growth

The phrase, “more bang for the buck,” is usually associated with the Vietnam War. It is associated with Defense Secretary Robert McNamara’s focus on statistics: military expenditures vs. enemy deaths. In fact, the phrase came from Eisenhower’s Secretary of Defense, Charles Wilson. He used it in 1954 to justify the Defense Department’s reliance on nuclear […]

Continue reading →

Muni Bonds as AAA Bank Capital

Written by Gary North on April 25, 2015

bonds

The Federal Reserve System is planning to issue new rules that will allow banks to buy municipal bonds as credit reserves for banks. Follow the logic: banks will supply capital to cities, which will serve as credit for banks. This is modern banking 101. This new arrangement will help provide a floor for cities’ debt. […]

Continue reading →

Why the Bubble Will Pop

Written by Gary North on March 19, 2015

bubble-popping

by David Stockman Janet’s Yellen’s pettifogging about her patient lack of impatience was downright pathetic. Her verbal hair-splitting is starting to make medieval ritual incantations sound coherent by comparison. But unlike the financial media’s dopey dithering about “dot plots”, Yellen at least has something to hide behind all the gibberish. Namely, she and her merry […]

Continue reading →

A Letter to David Stockman

Written by Gary North on March 14, 2015

david-stockman

Dear David: I want to let you know just how glad I am I’m not in your shoes. Responsibility goes with the territory. You oversee a lot of territory. You obviously have a lot of spare time on your hands, and so you have started a website. It gets a lot of traffic. The site […]

Continue reading →

Dollar: The Cleanest Dirty Shirt

Posted on March 14, 2015

dollar-over-others

by David Stockman I am constantly braced with questions about the US dollar and its impending demise. The reasoning seems to be that if America is a debt addicted dystopia—-and it surely is—- won’t the US dollar sooner or later go down in flames as the day of reckoning materializes? Won’t you make money shorting […]

Continue reading →

FED: “Recessions R Us”

Posted on March 12, 2015

fed-recession

By David Stockman So now the third immense financial bubble of this century has been fully inflated. And there are abundant signs that what we really have is a Great Immoderation—–a baleful, not beneficent, development that can be laid exactly at the door step of the central bank. Specifically, yesterday’s abysmal data on the soaring wholesale sales/inventory ratio (I/S ratio) is not […]

Continue reading →

A Large Order of Carnage. Hold the Mao.

Posted on March 3, 2015

euro-breakup

By David Stockman It is almost certain now that we are at the threshold of crossing the Rubicon which will result in a crackup of the EU and the euro.  There are just too many centrifugal forces blowing apart this experiment, which was misbegotten from the very beginning. That will then catalyze a thundering global […]

Continue reading →

The FED’s Recovery: Tepid, at Best

Posted on February 28, 2015

federal-reserve

By David Stockman The most important number in today’s Q4 GDP update was 2.3%. That’s the year/year change in real final sales from Q4 2013. As an analytical matter it means that the Great Slog continues with no sign of acceleration whatsoever. Indeed, the statistical truth of the matter is that this year’s result amounted to a slight deceleration—since […]

Continue reading →

Yellen Says No Rate Hikes, As I Knew She Would

Written by Gary North on February 25, 2015

janet-yellen

The Federal Reserve System cannot raise rates. It only pretends that it can. It cannot raise short-term T-bill rates. It has no power over T-bill rates. It can raise the Federal Funds rate: the rate at which commercial banks lend overnight money to other commercial banks. Problem: banks no longer lend overnight money to other […]

Continue reading →
Page 1 of 28123456»1020...Last »