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HomeFinancial Repression Kicks the Can and Our Butt
Posted by Larry Doyle on March 21st, 2012 8:36 AM |
More and more we see central bankers around the world — but especially here at home and within the EU — engaged in financial repression as THE means to solve our economic woes.
What is financial repression?
A term that describes measures by which governments channel funds to themselves as a form of debt reduction. This concept was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon. Financial repression can include such measures as directed lending to the government, caps on interest rates, regulation of capital movement between countries and a tighter association between government and banks.
What are the challenges faced by investors in an era of financial repression? (more…)
Quantitative Easing: To Infinity and Beyond?
Posted by Larry Doyle on January 29th, 2012 12:02 PM |
What does the Federal Reserve know that we don’t?
I mean, why would the Federal Reserve commit to keeping prevailing interest rates at next to zero through the end of 2014 if they were not aware of just how weak our underlying economy truly is?
Bernanke and team know our domestic economy and the global economy at large remain in need of significant and steady oxygen support. (more…)
