Either we continually prime the pump, keep interest rates at extraordinarily low levels and do all sorts of other central bank magic, or we fall into depression? This is basically what the Minneapolis Federal Reserve president said recently.
Every politburo has got at least one trouble maker. The Federal Open Markets Committee is no different, Jeff Lacker serves this roll to a limited extent.
In the attached interview Mr. Lacker says a number of interesting things, among them that economic expansion after 2007 is in his opinion a break with an historical trend line (which will continue).
Yesterday we talked about inflationary pressures in stocks and in housing. But the core of the world economy continues to struggle. We are printing like crazy here and in Japan, and equity markets, and to a very limited extent some housing markets, have trended up. But retail sales are trending down. Gold is trending down. Silver is trending down. Europe continues to trend down. China? Well it depends on the day. Things are pretty weird right now. And North Korea is throwing a nuclear tipped fit.
Stocks keep going up no matter what. Every day practically we hit new highs. The Fed keeps dumping money into the financial system. The Bank of Japan is printing on a massive scale too. Housing prices and rents are up significantly in New York and in Washington DC, the 2 cities closest to the printing of new money.
Just one more hit. That will make everything better. Just…one…more…hit……….
Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.
ZH reports on Bank of America’s admission that “today’s stock market has lost some of its ability to reflect underlying economic trends.”
Well, no kidding. Even Bloomberg.com is saying officially that the markets are rigged and we investors had better just get used to it.
That money has to go somewhere.
The ultimate crony capitalist state is looking at a sharp rise in prices.
The end of the payroll tax cut is hitting those struggling to get by the most. As the world teeters on another leg down in the economy many probably feel that they are already on the down slope.
Why did Rome fall? There are many reasons. Some think a big contributor was poisoning from lead pipes.
While there was too much of one metal in the lives of Romans, it was a lack of other metals, the precious kind, which may have done as much as bad plumbing to bring down the Empire.