Archives for: The Fed
Numbers Never Lie — Central Bankers, Politicians and Lawyers Do — Is the Fed Conspiring Against Us?
by Mitch Feierstein about 10 years 5 months ago
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 […]
Currency Wars Have Begun: Central Banks in Denial or Worse
by Mitch Feierstein about 10 years 6 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 & […]
The Fed’s Nuclear Balance Sheet. Stand Back: This Baby’s Going to Explode
by Mitch Feierstein about 10 years 10 months ago
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 […]
This Time It’s Different: Why It’s Time to Fire Bernanke
by Mitch Feierstein about 11 years 3 months ago
Two bits of news in the last couple days. One, Ben Bernanke, Chairman of the Federal Reserve, has decided to extend Operation Twist, a policy whereby the Fed sells short-dated government paper in order to buy the longer-dated sort. It sounds boring but it involves $267 billion, so it’s kind of consequential all the same. […]