The U.S. Federal Deficit Is About to Soar By Tom Dyson March 28, 2020 "...I used to work for the “repo” (short-term loans) desk at Citigroup. So when I started studying the markets again in 2018 after my two-year sabbatical, it was the first thing I noticed. “The plumbing beneath the banking system is blocked,” I wrote . The cause: Enormous amounts of cash the government was soaking up and the inability of the banking system to meet its appetite. As I warned many times last summer, if they didn’t unblock the money markets things would “start blowing up.” Things blew up on September 17, 2019 when the interest rate on short-term loans spiked from 2% to 10% in a matter of minutes. The Fed turned on its printing press and began bailing out the government. It couldn’t let the government collapse financially. That was the moment I was sure we were about to get inflation...." Further reading... Comment: It nice to hear from someone with...
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The Euro Zone’s Timeout is Expiring! (Money & Marketing)
The Euro Zone’s Timeout is Expiring! : by Bryan Rich | Saturday, November 27, 2010 at 7:30 am "Now, the euro-member countries are in trouble for all of the reasons Milton Friedman, one of the most influential economists of the 20th century, cited prior to that currency’s inception a decade ago. He said: A “one size fits all” monetary policy doesn’t give the member countries the flexibility needed to stimulate their economies. A fractured fiscal policy forced to adhere to rigid EU rules doesn’t enable member governments to navigate their country-specific problems, such as deficit spending and public works projects. Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors. A common currency can act as handcuffs in perilous times. Exchange rates can be used as a tool to revalue debt and improve competitiveness of one’s economy. Friedman predicted the euro would succumb to these flaws and fa...