Subject: Stormy Weather Ahead

Stormy Weather Ahead

October 15th, 2021 at 1:11 pm +07

Stormy Weather Ahead Credit growth is slowing rapidly in the United States. That is alarming because in the Twenty-first Century, Credit Growth Drives Economy Growth. Total Credit Growth (adjusted for inflation) slowed from 9.3% (year-on-year) in the ...

Interview: Economic Crises

October 8th, 2021 at 11:54 am +07

Interview: Economic CrisesI recently had a very interesting conversation with Kirk Chisholm for The Money Tree Investing Podcast. This interview provides a history of economic crises in the United States from 1914 to the present – their causes, ho ...

The Liquidity Tsunami Is About To End Abruptly

September 25th, 2021 at 2:22 pm +07

The Liquidity Tsunami Is About To End AbruptlyOn March 6th this year, Macro Watch published a video called “Liquidity Tsunami May Drive Asset Prices Much Higher”. It argued that during the months ahead Bank Reserves would surge, and that the rela ...

Slowing Inflation Won't Stop Fed Taper

September 18th, 2021 at 1:33 pm +07

Slowing Inflation Won't Stop Fed TaperingInflation in the United States slowed sharply during August. The Core Consumer Price Index (Core CPI) rose 0.1% month-on-month in August. That was down from 0.9% in April, 0.7% in May, 0.9% in June, and 0.3% i ...

The Fed Has A Big Problem

September 4th, 2021 at 5:14 pm +07

The Fed Has A Big ProblemOn Friday, the jobs report showed that only 235,000 new jobs were created in the United States during August. That was well below expectations of 728,000 new jobs. Up until then, the Fed appeared inclined to begin Tapering Qu ...

Interview: Inflation or Deflation?

August 27th, 2021 at 4:40 pm +07

Interview: Inflation or Deflation?Cris Sheridan recently interviewed me for the Financial Sense Newshour. It was another good conversation. I hope you will listen to it now. We discussed: Fed tapering of Quantitative Easing is on the horizon. Wha ...

The Fed Is More Profitable Than Apple

August 20th, 2021 at 1:25 pm +07

The Fed Is More Profitable Than AppleThe Fed is enormously profitable. In fact, if it were a corporation, the Fed would have been the most profitable corporation in the world last year. Luckily for American taxpayers, the Fed must hand over all its p ...

Liquidity Tsunami Update

August 5th, 2021 at 1:30 pm +07

Liquidity Tsunami UpdateBank Reserves topped $4 trillion for the first time last week. That is important because Bank Reserves are one measure of Liquidity in the Financial Markets. And Liquidity has become the most important factor influencing which ...

The Investor's Podcast Interview: 2021

August 1st, 2021 at 2:31 pm +07

The Investor's Podcast Interview: 2021The Implications of Peak Inflation I was recently interviewed by Trey Lockerbie for The Investor’s Podcast. This was an excellent conversation that covers not only the topics that investors are most concerned ...

Lessons From Comparing The Four Largest Central Banks

July 23rd, 2021 at 11:45 am +07

Lessons From Comparing The Four Largest Central Banks There is a great deal of concern in the United States regarding the large amount of money the Fed is creating through Quantitative Easing, currently $120 billion per month. Some fear this will res ...