Archive for the ‘Cryptocurrency’ Category

Notes From Underground: Central Bank Poker

January 21, 2021

This week, three G-7 central banks had meetings and all decided to CHECK and leave policy unchanged. This was widely expected as there was little reason to UPSET the incoming Biden administration with any idea of currency manipulation. However, the Bank of Canada, Bank of Japan and European Central Bank all discussed the fear of a further slowdown from an increased spread of covid-19.

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Notes From Underground: Hell Has Frozen Over. Greenspan and Harris Agree

December 7, 2017

Over the last 30 years I have not had much regard for Alan Greenspan. He has been wrong on many of the issues on which he has opined, not least his speech on home bias and his pleadings for U.S. homeowners to refinance their mortgages and use home equity as a piggy bank. But like Holden, I digress. In his CNBC interview Wednesday he was adamant that fiscal stimulus was ill-advised, but tax reform was necessary. He said Congress should use the reform to close tax loopholes and run budget surpluses while we are at some modicum of full employment. I agree with this and as Greenspan maintained, the beginning of this tax reform OUGHT to be the reconsideration of Bowles/Simpson. Greenspan also stressed “… the folks in Washington do not understand that reducing the size of the system portfolio is a necessary condition for normalizing the price of credit.” I also agree with this viewpoint. And, in regards to BITCOIN, Sir Alan explained you can’t create VALUE out of nothing.

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