An Illusion of Value: Zirflation and Nirflation in a Market that is Overfed but Still Malnourished
The Brexit vote (for which we reserve some doubts that it is ever completed) generated some panic selling, sending investors to the refuge of safe havens. Hence, government bonds experienced price gains and yields turned even lower. Now we live in interesting days...Brexit, Delusions, Fiat Money, and Economic Prospects: Historical Reflections
“A greater Quantity [of money] employs more People than a lesser Quantity”, said John Law in 1705 in his pamphlet titled “Money and Trade Considered, with a Proposal for Supplying the Nation with Money.” And so started the story of paper money and credit, which...Negative Rates and their Effects on the Equities and Bond Markets: Bifurcation Meets Bewilderment in Historical Perspective
Last week the European Central Bank (ECB) started buying corporate bonds. Over the course of the last four year the ECB has committed to “do whatever it takes” to save an ill-conceived monetary union and a dysfunctional Euro. Among its programs were the purchase of...The Fizzling Out of Productivity Growth Rate: Examining the Credit Velocity Link
Productivity growth in the US will decline for the first time in over thirty years, raising the obvious question: How about all those magnificent innovations that constantly change our lives and transform our world from the internet of things to the latest smart phone...Sign Up for Our Publications
