As the American Lost Decade(s) unfold, the Federal Reserve’s options to influence economic output dwindle. Today, the Fed confirmed the economic horizon will remain bleak. It also announced it would sell $400 billion of its near dated Treasuries and buy longer maturity ones. In a nut shell, Bernanke is trying to keep today’s free money(…)
It’s only a matter of time before the U.S. loses the dollar as the global reserve currency. Inertia helps us. As do the tatters of the goodwill since Bretton Woods, the Nixon shocks and Reagan deficits notwithstanding. We should prepare for it. So far, we aren’t. To call this weekend’s dollar slide an international conspiracy(…)
The immediate granular reactions to Obama’s budget, such as its ‘honesty’, education, EPA, armed forces personnel expansion, tax cuts, etc. are all important. We agree with the Center Left that the stimulus and budget are unlikely to generate the economic growth underpinning the budget’s out year projections. They are not audacious enough. Geithner’s tepid approach(…)
It’s maybe worth reminding ourselves that events in late 2008 prove there are more things in finance and geopolitics, Keith Olbermann, than are dreamt of in your ‘philosophy’. Paulson flings $600 billion more in fictional Fed money at the already sloppy financial wall this morning on top of Team Boy King’s unsubtle floating of a(…)
The IMF purports to be optimistic after the U.S. and U.K. acted to nationalize banks through direct capital injections. True, Paulson did not intend this even a week ago. But rather than excoriate him for improvising we applaud the flexibility. The question many might ask is why would a direct capitalization overcome fear of lending(…)
So the Fed now must take the unprecedented step and buy up commercial paper directly in an effort to unblock the credit market freeze. Why are people so on edge? Don’t they remember what Richard Perle said from atop Isengard, not that long ago?
Fine, who’s going to pay for it? We’re still skeptical the U.S. can sucker punch them yet again for a cash infusion. Particularly now since the Warlord’s tenure puts an exclamation point on “The Unipolar Power Has No Clothes” across all measures of influence, perceptions of power and status (even Scalia is not entertaining abroad).(…)
New York Crisis reveals real center of American power. Interesting, no – even as juxtaposition. Although, like Shanghai, we too have always felt NYC was far more important to Amerikuh than the city built on a swamp. So when the City faces a full blown crisis, we take it seriously. U.S. strength despite the Military(…)