Fed

The IMF is Dead Wrong on Low Interest Rates

Thursday, April 24th, 2014 by posted in Economics, Regulation.
Hot Orange Interest Rate Border

In its just-published World Economic Outlook the IMF trumpets the view that the real level of equilibrium interest rates worldwide has declined substantially since the 1980s and is now in slightly negative territory. There is a good Irish word to

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Deflation & Liberty (Pt. 5)

Tuesday, April 15th, 2014 by posted in Economics.
deflation-and-liberty

Inflation in the form of fractional-reserve banking and fiat money is ultimately a self-defeating practice. It bears in itself the germs of its own destruction and, as we shall see, deflation is the essential vehicle of this destruction. We can

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Deflation & Liberty (Pt. 4)

Monday, April 14th, 2014 by posted in Economics.
deflation-and-liberty

How would money be produced in a free society? Let us first observe that the fact that the quantity of money is irrelevant for the wealth of a nation must not be confused with the ideal of stabilizing the quantity

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Deflation & Liberty (Pt. 3)

Friday, April 11th, 2014 by posted in Economics.
deflation-and-liberty

[This article is excerpted from Deflation & Liberty] From the standpoint of the commonly shared interests of all members of society, the quantity of money is irrelevant. Any quantity of money provides all the services that indirect exchange can possibly

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Deflation & Liberty (Pt. 2)

Thursday, April 10th, 2014 by posted in Economics.
deflation-and-liberty

[This article is excerpted from Deflation & Liberty] When it comes to matters of money and banking, all practical political issues ultimately hinge on one central question: Can one improve or deteriorate the state of an economy by increasing or

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Deflation & Liberty (Pt. 1)

Wednesday, April 9th, 2014 by posted in Economics.
deflation-and-liberty

[This article is excerpted from Deflation & Liberty] The twentieth century has been the century of omnipotent government. In some countries, totalitarian governments have established themselves in one stroke through revolutions—apparently a bad strategy, for none of these governments exists

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The Fed’s “Taper” Caper

Thursday, December 19th, 2013 by posted in Banking, Economics.

The Fed “surprised” Wall Street by announcing that in the New Year it will begin tapering its asset purchases. (I worry about the Globe and Mail’s editorial staff when an event that has been discussed ad nausea for several years

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BoC Deputy Governor: US Fed Tapering is Eh-Okay

Thursday, September 12th, 2013 by posted in Capitalism, Economics.
bank-of-canada

Bank of Canada Deputy Governor John Murray is confident that Fed tapering won’t have any negative consequences for Canada. “The improving underlying strength of the U.S. economy should more than compensate for the drag from higher interest rates. Stronger external

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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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Why a gold standard, alone, is not enough

Tuesday, October 9th, 2012 by posted in Economics.
Beurs_van_Hendrick_de_Keyser_002

(Republished from “A View from the Trenches”, October 9th, 2012) Please, click here to read this article in pdf format: October 8 2012 As we pointed in our last letter, we have lately noticed that there is an ongoing debate on

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On risk convergence, overdertermined systems and hyperinflation

Sunday, September 30th, 2012 by posted in Uncategorized.
Sep 30 2012 featured

(republished from “A View from the Trenches“, September 30th, 2012) Click here to read this article in pdf format: September 30 2012 This week, we want to follow up on some thoughts from our last two letters, where we deduce the impact of

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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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Human action under ultra-low interest rates

Sunday, September 2nd, 2012 by posted in Economics.
yellow_andblue

(republished from “A View from the Trenches“, September 2nd, 2012) Click here to read this article in pdf format: September 2 2012 Over the past months (and particularly in the last weeks), we have increasingly read negative comments on the ongoing

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The US money markets and the price of gold

Sunday, August 19th, 2012 by posted in Economics, Uncategorized.
August 19 2012

(republished from “A View from the Trenches“, August 19, 2012) Click here to read this article in pdf format: August 19 2012 What do USD money markets have to do with gold? Money market funds invest in short-term highly rated securities, like

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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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