MONETARY REGIMES - CounterStrikeMedia

THE STATE OF CHINA'S BOND MARKET & ASIAN MODELS OF NATIONAL SUCCESS

2/28/2018

ASIAN MODELS OF NATIONAL SUCCESS

China’s bond market looks forward to joining global sphere
BY ASIA TIMES STAFF
But foreign capital still has concerns about China's tax system, bond rating and liquidity, says Fidelity analyst

The key to strengthening China’s currency
TOM VELK AND JADE XIAO
China’s money is becoming stronger on the currency market. Is this news or was it predictable? Think about investment opportunities inside China, and China’s worldwide export, import and overseas investment activity. The situation is like that of America in the 20th, and England in the 19th century: The rest of the world looks to the cutting edge of technical progress and innovation. China is becoming just such a leader: If it isn’t there right...

STOP PAYING INTERESTS ON RESERVES: US FED & WHY U.S. FED IS BULLISH

2/23/2018

Fed Should Stop Paying Interest on Reserves
Peter Ireland, E21
Since October 2008 the Federal Reserve has paid interest on bank reserves. It first introduced interest on reserves in the depths of the financial crisis, to prevent its emergency lending programs from creating excessive money growth and inflation. It continues to pay interest on reserves today, as it gradually reduces the size of its balance sheet even as it more rapidly raises its target for the federal funds rate. As soon as its asset holdings return to more normal levels, however, the Fed should cease paying interest on reserves. Read more here....

Fed Chair Powell Is Bullish on Economic Momentum
Mickey Levy, E21

Fed Chairman Jerome Powell, in his first semi-annual testimony to Congress, struck a balanced tone, emphasizing continuity in the conduct of monetary policy as the Fed pursues its congressional dual mandate of 2 percent inflation and maximum employment.

Powell’s emphasis on the Fed’s pursuit of the dual mandate reflects the Fed’s tricky position of satisfying the Congress and its two key committees that supervise the Fed — the House Financial Services and Senate Banking Committees. His testimony drew heavily on the “Semiannual Monetary Policy Report to the Congress” that the Fed had already submitted. Read more here...

RAJAN: THE KEY IS PRODUCTIVITY

2/23/2018

Surveillance: The Key Is Productivity, Raghuram Rajan Says (20:34)
interview with Raghuram Rajan via Bloomberg
Hoover Institution fellow Raghuram Rajan says it would be ideal for the new Fed Vice Chair to be someone who straddles both academic and policy worlds.

Growing Cash In Economy May Be Due To Polls: SBI
quoting Raghuram Rajan via The Times of India
State Bank of India (SBI) has said that the spike in currency in circulation to near pre-demonetisation levels is possibly driven by political parties hoarding cash ahead of polls. Historically, cash usage picks up ahead of elections across governments. The surge in currency is slowing down deposit growth and pushing up interest rates in money markets.

SOCIALISM IN INDIA & BANK FRAUDS

2/17/2018

Let Bankers Run India’s Banks
Mihir Sharma, Bloomberg View

THE BIG ONE IS COMING, AGAIN

2/15/2018

A crisis is coming
Desmond Lachman | US News & World Report
Desmond Lachman writes that by this time next year, we will have had another global economic and financial crisis like the one in 2008–09. And this will happen despite Janet Yellen’s recent reassurances that we would not have another such crisis in her lifetime.

EGYPT'S CURRENCY FLOATS & IRAN FALLS

2/12/2018

Egyptian Remittances Rose by Around 20% Since Currency Float

Six factors driving Iran’s sudden currency devaluation
A confluence of political, economic and psychological factors appears to be behind the recent plunge in the Iranian currency’s value on the free market.

FIXING CHINA'S CREDIT SYSTEM

2/7/2018

Fixing China’s Financial Credit System

FED'S INFLATION TARGETING SCHEME CONTINUES & THE FALL, THE BLAME GAME ON US EQUITIES

2/6/2018

’Tis the Season for Inflation Scares
Douglas Carr, E21
Going back the last fifteen years, 12-month inflation statistics such as the Personal Consumption Expenditures Price Index and the Consumer Price Index have exhibited a pattern of unusually high figures in January and February of each year, followed by lower statistics for the balance of the year, even after seasonal adjustment by the U.S. government statistical agencies. The seasonal patterns are most evident in the core inflation figures that exclude food and energy prices, as commodity-oriented prices do not exhibit such seasonal tendencies. Read more here...

E21

The Next Bubble to Burst
Desmond Lachman, AEI

The market collapse blame game
Desmond Lachman | The New York Times
It’s unlikely anyone will take credit for the current global market free fall, which is clearly not just a correction but an overdue unwinding of years of excess. Whether the damage remains limited to markets or spills over into the general economy remains to be seen, but we could well be on the verge of another global financial crisis. It’s no surprise that, sooner or later, the global financial markets would unwind as violently as they now seem to be doing, considering how far they were allowed to get out of line with their underlying values.

Don’t Mistake the Stock Market for the Economy
Robert Burgess, Bloomberg View

Dow falls more than 600 points as US stocks take another beating
BY DAVID P. GOLDMAN
Market fears of rising bond yields don’t tell the whole story

The Coming Bear Market?
Robert Shiller presents evidence that US stock markets may not maintain their high valuations for much longer.

Is the Stock Market Loaded for Bear?
Dambisa Moyo thinks the recent fall in equity prices is a harbinger of a broader economic reckoning to come.

Three Lessons For Investors In Turbulent Markets
quoting Michael Spence via Bloomberg
The global stocks roller-coaster of recent days reminded me of three lessons I learned many years ago as an investor in emerging markets. If well understood and applied, these precepts can turn unsettling volatility surges into longer-term opportunities.

CAN THE RENMINBI CHALLENGE THE DOLLAR

2/4/2018

PROJECT SYNDICATE

TURKISH CENTRAL BANK GOES ABROAD

2/2/2018

Turkey’s trade deficit balloons 64% in December
BY DAVID P. GOLDMAN
Lira’s resilience suggests politically motivated financing from abroad