The Bank of Japan is set to release its monetary policy statement sometime tonight. The Federal Open Market Committee’s decision to cut the range for the interbank overnight lending fee (fed funds rate) and the interest rate it pays on reserves left on deposit with the Fed by 25 basis points. The cut was expected … Continue reading The markets are waiting on Japan
So, Elon Musk wants to cut the U.S. federal budget by $2 trillion or approximately 29.85%. If we transferred that percentage cut to annualized 2024 3Q federal government consumption expenditures and gross investment of $1893.4 billion, accounting for 6.5% of gross domestic product, government consumption expenditures and gross investment would fall to approximately $1,328.2 billion. … Continue reading DOGE, the Impoundment Control Act, and Trump’s opportunity for a little political warfare.
NADEX, a binary options exchange platform, has an events contract posted with a buy price of $.98 on the EUR/USD exceeding 1.0275 by the end of this coming week. Assuming the Federal Open Market Committee does not make any changes to the federal funds rate, discount window, and interest on reserve balances, I estimate that … Continue reading I see EUR/USD exceeding 1.0275 by this Friday
The State extracts, expends, and expands. I do not believe that either Elon Musk or Vivek Ramasawmy gets this concept. The wealth they created in this country is based on this concept; that as the State increases its borrowing costs to fund its expansion, that some of the raised revenues go to contracting with or … Continue reading DOGE: Will it support the currency?
I practice a different type of constitutional law. The question I ask is, “Are the State powers coordinating to maintain the value and the strength of the currency? My policy (strategic) position is the Fleming Maxim (named for my friend and economist, James Fleming): strong dollar plus tariffs hurt poor people. Hurting poor people creates … Continue reading A different take on constitutional law
The expansion of the BRICS alliance has been happening without any noticeable concern by the outgoing Biden-Harris administration. I heard no mention of BRICS by former Democratic presidential candidate Kamala Harris during her 2024 campaign. As potential de jure head of state, one would think that both her and the presumptive president-elect, Donald Trump, would … Continue reading Trump to the BRICS: “Don’t muscle in on my currency turf.”
Former U.S. president Donald Trump made the crypto industry a promise; that he would consider creating a fund that holds bitcoin as a reserve asset [1]. A number of states including Pennsylvania are reportedly considering similar proposals for incorporating state bitcoin ownership as a part of their state fiscal policies [2]. U.S. Senator Cynthia Lummis, … Continue reading Does making bitcoin a reserve asset increase transactional activity in the U.S.?
Liquidity Foreign exchange, algorithmic trading, volatility. Financial markets have become more susceptible to liquidity shortages with the rise of algorithmic trading and increased market fragmentation, according to the Bank for International Settlements. Foreign-exchange trading, meanwhile, proved more resilient potentially due to measures taken to curb unwanted behavior from high-frequency traders. Yahoo!Finance. Excess liquidity. Thailand’s banking … Continue reading The Interbank Market: The Ghanaian cedi continues its appreciation against the dollar.
Liquidity Bitcoin. Bitcoin’s nascent DeFi scene is getting a lot of excitement, with proponents saying that it will ultimately unlock more than $1 trillion in idle capital that currently does nothing more than act as a store of value. Analytics Insight. Bitcoin. Bitcoin’s price trajectory has reached new heights, nearly hitting the $100,000 mark post-election, … Continue reading The Interbank Market: Decreasing amount of bitcoin meets liquidity crunch.
Lawyers Write the Bets. Bankers Sell the Bets. 