Randy Wray: The Value of Redemption (Debt Free Money, Part 3)
Repeat after me: creation comes before redemption. Always!
Read more...Category Archives: Credit markets
Will German Sovereign Debt “Bail In” Scheme Destroy the Eurozone?
Germany is keen on implementing a sovereign bail-in plan that is certain to precipitate a crisis, but more likely a banking crisis than a breakup.
Read more...Money and Banking – Treasury and Central Bank Interactions
The post studies how the Fed is involved in fiscal operations and how the U.S. Treasury is involved in monetary-policy operations. The extensive interaction between these two branches of the U.S. government is necessary for fiscal and monetary policies to work properly.
Read more...Satyajit Das: Age of Stagnation or Something Worse?
In The Age of Stagnation, author Satyajit Das has shifted from his usual wry detachment to a sense of foreboding.
Read more...Wolf Richter: Financial Chaos, Junk Bond Edition
Junk bonds are at 2008 bottom levels by some measures. But are they a bargain, or a falling safe?
Read more...Should Argentina Now Pay the Ransom to Its Hostage-Takers?
Argentina’s vultures keep pressing for higher and higher settlement terms, while giving the impression that at some point they would settle. What is the end game?
Read more...Eurobanks: The Probable Point of Failure as Systemic Stress Rises
Why Eurobanks are the most likely fracture point if current economic stresses continue.
Read more...The Hidden Agenda Behind Saudi Arabia’s Market Share Strategy
Were the Saudis actually not targeting the US shale industry or did their original plans misfire?
Read more...Former Central Banker William White on the Failure of QE, Danger of Negative Interest Rates
Former Bank of International Settlements chief economist William White criticizes central bank policies sharply, particularly negative interest rates.
Read more...Money and Banking – The Fed and Monetary Policy
A very readable, information-rich post on what the Fed does and does not do, with emphasis on the nitty-gritty of monetary policy. If you are time-pressed, read the last item in the FAQ first, which is a terse item-by-item debunking of widely made, inaccurate statements about the Fed.
Read more...Why the Market Freakout About Bank Stocks is Well Warranted
Bad loans are not the only reason to worry about banks. ZIRP and negative interest rates will bleed them to death, and Eurobanks are at real risk of bank runs.
Read more...Capital Requirements: Another Odd Attempt to Declare Victory on Dodd-Frank
I suppose we’re going to have to deal with half-truths and logical stretches about Dodd-Frank right through until November, but Bernie Sanders’ focus on Wall Street has really ramped this up of late. The trajectory appears to be a show of proof of some sort, followed by a blog link from Paul Krugman, at which point the citation hardens into conventional wisdom. The version of this that began a few days ago with Wonkblog’s Matt O’Brien has a level of truth to it, of course, but I don’t think it reveals exactly what its endorsers think.
Read more...Positive Money in Action
Positive Money boosters have failed to consider (or perhaps have failed to publicize) is that it would necessitate draconian controls to prevent the creation of private credit.
Read more...Paul Craig Roberts on Michael Hudson’s Killing the Host
An introduction to Michael Hudson and his latest book.
Read more...Bill Black: How Many Lies Can the WSJ Pack into a Chart on Liar’s Loans?
Bill Black is not happy about the revisionist history on liar’s loans. And separately, this piece is a useful exercise in the critical reading of narratives.
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