Archives for: depression

9

We put out one fire but now Mark Carney wants to start another

by Mitch Feierstein about 1 year 4 weeks ago

Mervyn King’s decade at the Bank of England was a disaster. The Bank was too slack during the long and indisciplined boom, under prepared for the crash and playing catch-up thereafter. The legacy of Lord King’s (and Gordon Brown’s) career has been an economy still limping along far below peak output, real wages caught in [...]

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3

An America divided against itself: US debt is way past the ceiling

by Mitch Feierstein about 1 year 1 month ago

Barack Obama made a speech recently pledging his opposition to (yet another) game of chicken over America’s debt ceiling. “This is the United States of America,” he told his audience. “We’re not some banana republic. This is not a deadbeat nation. We don’t run out on our tab. We’re the world’s bedrock investment – the [...]

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The dual mandate of the Federal Reserve is a good one. It is charged with ensuring stable prices and maximum employment. That’s a good basic recipe, one which served the country well. And notice what isn’t there. The Fed is not charged with distorting natural market pricing mechanisms to the point of perverting risk. It [...]

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0

Cyprus: Rules for Sanctioned Deposit Confiscations

by Mitch Feierstein about 1 year 7 months ago

THE ENFORCEMENT OF RESTRICTIVE MEASURES ON TRANSACTIONS IN A SITUATION OF EMERGENCY DIRECTIVE OF 2013 Order under articles 4 and 5 WHEREAS there is a substantial lack of liquidity and a significant risk in the outflow of deposits which are likely to endanger the survival of the credit institutions with a chain reaction that could [...]

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24

Currency Wars Have Begun: Central Banks in Denial or Worse

by Mitch Feierstein about 1 year 8 months ago

Here’s a piece of recent news that you almost certainly missed: A large consumer products company, Johnson & Johnson, announced a one-off loss owing to a 32 percent currency devaluation in Venezuela. The reason I expect you missed that less-than-seismic piece of news is that, unless you happen to be particularly fascinated in Johnson & [...]

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How nice of you: that gift you just made to charity. No one asked you if you wanted to make the gift. No one asked you which charities you’d want to support. But still. You made it. So thanks. Well done.  If you’re confused – if, by chance, you don’t remember authorising anyone to pick [...]

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Over the coming weeks, we’re going to be hearing a lot about the ‘fiscal cliff’: the threat that some 5% of GDP is going to be ripped out of the economy in a combination of tax hikes and spending cuts. A fiscal slow-down on that scale will almost certainly trigger recession. The CBO thinks so, though their numbers look [...]

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Obama’s an accomplished individual. Smart, cool, in control. But his standout quality is probably his ability to create euphoria. Create it, sustain it, ride it. Watch the people celebrating with him at his victory rally in Chicago and you could easily believe that the USA had just won a war or beaten a recession. Unfortunately for [...]

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WE ARE A NATION OF LIONS LED BY DONKEYS IN THIS ECONOMIC TRENCH WARFARE

by Mitch Feierstein about 2 years 1 month ago

A hundred years ago, a generation of men – many of them volunteers – fought an unprecedently bloody war for almost invisible gains. The men were heroes, but the generals commanding them were too often blunderers, too little conscious of the ever-mounting casualties. David Cameron is right to demand that our schoolchildren are reminded of [...]

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  Last week, the Bank of England declared its intention to print another £50 billion. Hardly anyone noticed. That £50 billion will bring the Bank’s total money printing to around £425 billion, or about one quarter of British GDP. No one cares. This evening, the U.S. Federal Reserve will announce its own plans for another [...]

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