The takeaway: The role of government is to feed the bond markets … Markets are not the creation of people. … More
Category: government affairs
Interbank Market News Scan: The real free market is the one between commodities owners, merchants, and traders.
You would swear that America has a labor centric economic policy especially when jobs day comes around. The labor centric sentiment is fleeting. The inordinate amount of attention that is given to the Federal Reserve and monetary policy tells me its more about the financial markets and a lot less about the labor markets.
Interbank Market News Scan: What the fed funds futures market is telling me …
The Federal Reserve Discount Window rate is up to 5.25% after the Federal Open Market Committee decided yesterday to increase … More
Should the American State return to mercantilism?
The takeaway: Should the State change its economic policy … The Government (the Executive and his Cabinet), with State approval, … More
The political party that wins the franchise on government should always think about yield.
The takeaway: Underwrite the political management company that understands yield… A very simple model of the needs of the State … More
Counsel on political leadership. The Democrats need a whole new slate.
Voters in general and Black voters in particular have allowed the Democratic leadership to get away with offering low hanging fruit disguised as something rare and valuable. In a political economy based on credit-capitalism where the government issues debt in order to raise capital for financing vote getting programs and wars, Democratic leadership should have as its primary focus strengthening the thread of the nation-state via its capital allocation (banking) system.
Interbank Market News Scan: Betting markets see the effective federal funds rate dropping and that the Fed will not hike rates.
Over the next twelve months, as rates fall any cheerleading about an economic upturn should be tempered by a narrative that a close eye is being kept on the economy and that disciplined expenditures are being made to keep moderate winds blowing into the economy’s sails.
Interbank Market News Scan: No political rhetoric today that impacts the overnight markets in the U.S.
I would think that given the U.S. economy runs on a fractional reserve platform that the Administration and the Congress would politely opine more on monetary policy. The Administration and the Congress appear to prefer the “kick the can across Pennsylvania Avenue and down Constitution Avenue” approach to monetary policy, mentioning it only when it is time to deflect criticisms on his handling of the economy.
Interbank market news scan: The jobs report wraps up the Holy Week.
Mr Biden may have missed an opportunity to craft a narrative that emphasizes the importance of getting ahead of the inflationary impact of blocks of emerging economies threatening to transition from the US dollar to resource-backed currencies. These threats have yet to materialize into something definitive and until then the inflationary impact of dumping the US dollar or at least complementing it with other currencies is a way off.