Is Stimulus Responsible for the Recent Improved Trends in the U.S. and Japan?

Maybe. Since central banks began their B.S. back in 2001, when the Bank of Japan first began Quantitative Easing efforts, I’ve warned that it wouldn’t be enough… that none of them would be able to commit to the vast sums of money they’d ultimately need to prevent the Economic Winter Season – and its accompanying deflation – from rolling over us. Demographics and numerous other cycles, in my studied opinion, would ultimately overwhelm central bank efforts. Well, $ 12 trillion later – after the U.S. and Europe jumped on the QE bandwagon in early 2009 – I have to admit […]

Read More

Negative Interest Rates Are the Next Stage in Global Stimulus

Since late 2008, central banks around the world have used unprecedented QE to try and stoke the global economy. Then in June 2014, the ECB took it a step further. They went negative. Zero short-term interest rates apparently weren’t enough. The ECB realized that if they couldn’t get banks to loan or consumers to spend, why not really light a fire under their ass and tell them: “if you’re not going to spend, you have to pay to keep your money in the bank!” The Swiss thought this was a great idea and did the same in December 2014. Later […]

Read More