European Central Bank

Negative Interest Rates– Only The Start?

Friday, June 20th, 2014 by posted in Banking, Capitalism, Economics.
eurobanknote teaser

Reprinted from Circle Bastiat As Ryan McMaken noted on June 5,  the European Central Bank has instituted negative interest rates for member banks. This could soon spread to the US and also to consumer accounts. If so, you would find money

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The Impossibility of Negative Interest Rates

Tuesday, June 10th, 2014 by posted in Banking, Capitalism, Economics.
ecb

Central bankers must be getting desperate. After the futile effort to boost the global economy via synchronized money printing en masse, they are doubling down on the same failed policy. Now it’s no longer enough to produce endless supplies of

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Central Banks Extend Their Reach as Bureaucratization of Markets Continues

Tuesday, April 1st, 2014 by posted in Banking, Capitalism, Economics.
fed teaser

Reprinted from DetlevSchlichter.com The twentieth century witnessed the shift from the classical order of free markets and hard, non-political money – epitomized by the gold standard – to fully elastic money and credit markets under the control of state central banks.

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The False Choice in Europe Between Austerity and Growth

Monday, April 22nd, 2013 by posted in Banking, Capitalism, Economics.

The debate in Europe over what policies the debt ridden countries should pursue is being falsely constructed as a choice between austerity and growth.  Not only is there another, more appropriate alternative, but these two alternatives themselves are not properly

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An analytic framework for 2013

Tuesday, January 15th, 2013 by posted in Economics.
Front Jan 15 2013 ii

Republished from “A View from the Trenches“ Click here to read this article in pdf format: January 15 2013 In the same fashion that I proposed an analytic framework for 2012, I want to lay out today what I think will be

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What causes hyperinflations and why we have not seen one yet: A forensic examination of dead currencies

Tuesday, December 18th, 2012 by posted in Economics.
Dec 16 2012 3

Please, click here to read this article in pdf format: December 18 2012 As anticipated in my previous letter, today I want to discuss the topic of high or hyperinflation: What triggers it? Is there a common feature in hyperinflations that

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The Mess the Bank Made… and Denies

Monday, December 17th, 2012 by posted in Banking, Capitalism, Economics, Education, Politics, Regulation.
bank-of-canada

Back in April, I reviewed a document called the “Financial System Review”, published semi-annually by the Bank of Canada.  Due to the dire warnings contained therein, I thought it necessary to produce a more user-friendly summary of the information the

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The year 2012 in perspective

Sunday, December 9th, 2012 by posted in Economics.
Featured image Dec 9 2012

Click here to read this article in pdf format: December 9 2012 Today, I want to summarize what we covered over the year. During 2012, I sought to address both theory and market developments. Under an Austrian approach, I discussed many

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Anatomy of the End Game

Thursday, November 22nd, 2012 by posted in Economics.
Nov 22 2012

(click here to read this article in pdf format: November 22 2012) About a month ago, in the third-quarter report of a Canadian global macro fund, its strategist made the interesting observation that “…Four ideas in particular have caught the fancy

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On currency swaps and why Gartman may be wrong in focusing on the adjusted monetary base

Sunday, October 14th, 2012 by posted in Economics.
Jacques Rueff

(republished from “A View from the Trenches“)   Please, click here to read this article in pdf format: October 14 2012 Today, we were supposed to follow up on our last topic (how to shift to a commodity-based standard, with a

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Did the risk-free rate move to Frankfurt?

Sunday, September 16th, 2012 by posted in Economics.
Sep 16 2012

(republished from “A View from the Trenches“, September 16th, 2012) Click here to read this article in pdf format: September 16 2012 Last week, after the German Bundesverfassungsgericht decided not deactivate the debt monetization program announced by Mr. Draghi a week earlier,

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How Draghi opened the door to hyperinflation and denied the Fed an exit strategy

Monday, September 10th, 2012 by posted in Economics.
front image Sep 10 2012

(republished from “A View from the Trenches“, September 10th, 2012) Click here to read this article in pdf format: September 10 2012   We finally heard the intentions of Mr. Draghi, President of the European Central Bank (“ECB”). We only need to

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Leverage, floating rate notes and high frequency trading

Monday, August 6th, 2012 by posted in Economics.
High-frequency-trading

(republished from “A View from the Trenches” : www.sibileau.com ) Click here to read this article in pdf format:  August 6 2012 Today is a holiday in Canada and our letter is published later than usual. We will make a

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No news on the monetary front

Monday, July 30th, 2012 by posted in Economics.

(republished from “A View from the Trenches” (www.sibileau.com) Click here to read this article in pdf format: July 30 2012 Besides the 2012 Olympics (Go Canada!), last week, we had two main drivers of markets, at a macro level, of course.

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More of the same…

Monday, July 9th, 2012 by posted in Economics, Uncategorized.
July 9 2012

Click here to read this article in pdf format: July 9 2012 Markets had a quiet week, with a holiday in Canada and another in the United States. We will therefore be brief today. In our last letter, we presented how

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General market comments

Monday, June 25th, 2012 by posted in Economics.

We are as deceived as you are with the policy decisions undertaken by the European Union (EU) and the US. As we muddle through their consequences, today we take a moment to offer a few thoughts… -On the EU: Banking

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We’re getting closer…

Monday, April 9th, 2012 by posted in Economics.

As Easter approached, we began to see a timid sell off in US stocks (but not so timid in Europe or Canada), in corporate debt, and in Treasuries. Treasuries later in the week rallied, but if you ask, we would

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The tide turned against the EMU

Sunday, March 11th, 2012 by posted in Economics.

On Friday, out of the office and away from the screens (we are currently visiting the US capital), we were spared the enormous volatility in gold. Gold tried to break through the lows made since a public institution liquidated bullion

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