Subject: What Are Bank Reserves?
What Are Bank Reserves?
May 30th, 2019 at 5:15 pm +07What Are Bank Reserves?When the crisis of 2008 began, the Reserves that commercial banks hold in their accounts at the Fed soared from $21 billion in 2007 to $2.4 trillion in 2014. Many commentators concluded that the Fed’s policies and Quantitativ ...
Seigniorage: Simple, Short and $1.7 Trillion Sweet
May 16th, 2019 at 1:34 pm +07Seigniorage: Simple, Short and $1.7 Trillion SweetThe new Macro Watch video describes the enormous windfall profits the US Government and, therefore, US taxpayers earn as the result of Seigniorage every year. Seigniorage is the profit a government ma ...
Looser Monetary Policy Will Be Required
May 2nd, 2019 at 4:43 pm +07Looser Monetary Policy Will Be RequiredAs recently as 1969, US savings were sufficient to fund all US debt. How things have changed. Last year, the US had only enough savings to finance 22% of all its debt. During the years between 1969 and 2018, the ...
Expect Fed Rate Cuts This Year
April 18th, 2019 at 11:00 am +07Expect Fed Rate Cuts This YearCredit Growth drives Economic Growth. But the United States doesn’t save enough to finance all that it borrows. It hasn’t for a very long time. To finance the credit growth that drives the economy, the US must rely o ...
Credit Growth, Asset Prices and The Fed
April 4th, 2019 at 11:37 am +07Credit Growth, Asset Prices and The FedBetween 1980 and 2008, Credit Growth drove Economic Growth. The ratio of Total Credit to GDP soared from 170% in 1980 to 370% in 2008. Since 2008, however, Credit Growth has been too weak to make the economy exp ...
Alphabet’s World Changing “Other Bets”
March 21st, 2019 at 5:25 pm +07Alphabet’s World Changing “Other Bets”In a recent video, we looked at Alphabet, the parent company of Google, along with the five other US tech giants. There we saw that Alphabet’s most famous products and platforms, including Android, Chrome ...
The Tech Giants: Part Two
March 7th, 2019 at 6:23 pm +07The Tech Giants: Part TwoThis video is the second in a series looking at the largest US tech giants ranked by R D Investment. Part One covered Amazon, Alphabet and Intel. Part Two covers Microsoft, Apple and Facebook. Combined, these six companies i ...
The Tech Giants: Part One
February 26th, 2019 at 5:05 pm +07The Tech Giants:Part OneThe new Macro Watch video is the first in a two-part series examining the six largest US tech giants, ranked according to the amount they invest in Research and Development (R D). They are: Amazon Alphabet Intel Microsoft Appl ...
Announcing A Course On Global Monetary Policy
February 15th, 2019 at 12:53 pm +07Announcing A Course On Global Monetary Policy Monetary Policy is now arguably the most powerful force driving the global economy and the world’s financial markets. Central banks prevented a new global Great Depression following the Crisis of 2008 ...
The Fed's Historic Policy Shift
February 6th, 2019 at 12:54 pm +07The Fed's Historic Policy ShiftThe Fed’s January 30th FOMC meeting produced one of the most consequential shifts in Monetary Policy that I can recall. Rate hikes were put on hold. Quantitative Tightening is to be ended much sooner than was expected ...