Today, the US Federal Reserve did as the market expected. It raised interest rates. Yet there’s an obvious reason that this won’t be the last rate hike. Our eyes are on March.
The Fed can raise short-term rates. But it will have to follow, not lead. It will have to hide in the shadow of rising consumer prices, staying “behind the curve” of inflation expectations.
New banking regulations appear to be purely cosmetic. The real problem is in the foundation, where bankers ensure that everyone has access to “easy money” and debt is swept under the generational rug.
If struggling bank Monte dei Paschi di Siena doesn’t resolve its financial issues by then, either through a restructuring or a capital injection, it could lead to a nightmare January for all of Europe.
In the 1980s, the United States was able to overcome a long period of “stagflation” under President Ronald Reagan. Argentina is currently facing a very similar situation under Mauricio Macri.
From Dec. 14th onward, expect things to get more expensive here in Germany and across Europe. As the European Central Bank simply watches the decision in the US, I call this "cold expropriation."
By John Stepek – MoneyWeek Magazine (Great Britain) – I was in the pub with a financial adviser friend earlier this year, not long after the Brexit vote. Being based in Scotland, he’d already seen his business disrupted by the independence
You may have asked yourself frequently in the past few months why the financial markets react differently to important events than predicted by experts. The answer is simple.
By Kris Sayce – Port Phillips Insider (Australia) – Another crisis comes and goes almost before you can understand it. Yesterday, markets in Asia took a beating as the Italian constitutional referendum result became clear. Then, European markets
By Nick O’Connor – Capital & Conflict (Great Britain) – After an initial bump, markets took the news of the Italian referendum vote in their stride. Does that mean Italy and Europe are out of the woods? That’s what I asked Tim Price.
By Julien Backhaus – Wealth Protection Up-To-Date (Germany) – A Briton has said a few hours ago that the euro stands before the end. This statement will probably not surprise you. Crash prophets are finally more than enough. Still, the statement
By Julien Backhaus – Wealth-Protection-Up-T0-Date (Germany) – You have already heard of a referendum in Italy on Sunday. It is about a total of 46 constitutional changes that the people should wave through. The vote is necessary from the point of
It’s been eight years since the global financial crisis and some banks are still suffering. But yesterday we got a warning that not all UK banks are 100% out of the woods yet.
I wrote in this week’s MoneyWeek editor’s letter that Philip Hammond’s abolition of letting fees for tenants should be seen as the start of this government’s intention to intervene wherever it sees “market failure.”
In German, it’s Projekt Angst. In French, it’s Projet de Peur. In Italian, Progetto di Paura. They all mean the same thing. Project Fear.
Negative rates are a sign something is wrong in the system. That scares people. That fear leads them to becoming more conservative and actually saving more than they would otherwise.
Based on the futures markets, there is now a 100% probability of the Fed raising rates. But after the US election, we’ve come to doubt polls and probability… maybe we shouldn’t buy this rumor either.
If the Fed really has been gagging to raise rates, it’s never had a better time to do so. Given the near certainty, we should be able to assume that the market has fully priced a rate rise into all asset prices.
Should predictions of a US recession in 2017 come true, Yellen will be the perfect scapegoat. If the economy doesn’t tank, then Donald takes credit for a strong economy. Either way he spins it, he wins.
By Federico Tessore – Investor Passport (Argentina) – What if I told you that there is a country whose citizens LOVE to pay taxes? No, I’m not talking about Argentina. I’m talking about a country where taxpayers not only don’t try to
At a meeting in London back in 2015, central bankers discussed the best ways to punish cash holders. You’ve already seen a few of their ideas in action: NIRP and the abolition of the €500 note.
Bill Bonner – Bill Bonner’s Diary (USA) – Here’s the latest from the Fed. It just completed a two-day policy meeting and wrote in a press release: The Committee judges that the case for an increase in the federal funds rate has continued to strengthen
Nick O’Connor – Capital & Conflict (GBR) – In this issue of Capital & Conflict… the irony of sovereignty… asking the European Court for permission to leave… inflation returns… how to admit you’re wrong like a central banker… and why
At the weekend, reports surfaced that Mark Carney, governor of the Bank of England, may be close to stepping down. He could even use this Thursday’s inflation report to make the announcement.