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Victims of “Financial Repression”

Why buy low-return government bonds? One not-so-surprising answer: Government manipulation. Government rules are so pervasive you could say that government manipulation is everwhere, so why should the financial sector be any different? And you’d be right. For example, just by requiring banks to retain a bigger and safer capital reserves buffer helps

bernanke-headache
Deflation’s Big Headfake

Shame on the Globe and Mail for asking if deflation could be making a comeback. Let’s get real. The Fed has been printing money as if it’s going out of style. You simply cannot do that and NOT have inflation. Look at the modern economic history of the US and you’ll see

Japan’s Next Decade Starting Like Previous 2

Japan has had twenty years of deflation and negligible growth. Shall we make it 21?