All posts in " Central Banks "
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Lagarde – ECB – Euro

By admin / November 19, 2019

The central banks are keenly aware that they cannot stimulate economic growth, although they will not state that publicly. The wheel of fortune has completed its revolution. The central bankers are quietly lobbying the political side of the aisle to swing back to Keynesian fiscal policy and reverse austerity. The 63-year-old Christine Lagarde was supported […]

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Central Banks Pre & Post-1971

By admin / October 22, 2019

QUESTION: You commented that the central banks had a difficult position when they were on the gold standard compared to post-1971. Could you explain that difference? Thank you for the education. Its better than any classroom. EJ ANSWER: The United States created the Federal Reserve in 1913. Prior to World War I, central banks were […]

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Who Earns the Money from Government Debt?

By admin / October 21, 2019

QUESTION: Would you please explain exactly what government debt is and who receives the interest payment that governments make on borrowings? I thought that Governments borrowed from their respective central banks and paid the central bank interest on the debt. I never understood why a government would have to pay any interest. My brother tells […]

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Central Banks Trapped by Their Theories

By admin / October 14, 2019

QUESTION: Hi Martin, I can understand how JP and EU backed themselves into a corner with negative rates. Happy to give them the benefit of the doubt when this all started 3-4 years ago even though it was obvious this was not going to end well. However, what I don’t understand is the thought process […]

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RISK – Banks – Bailouts – Conflicts in Laws

By admin / October 7, 2019

QUESTION: Dear Martin Armstrong, In your  blog post “Liquidity Crisis & the Pending European Banking Crisis”  Posted Oct 2, 2019 ” you write ‘Those in Europe who have a position in cash, it may be better to have shares or a private sector bond or US Treasury. Given the policy in Europe of no bailouts, […]

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ECB Will Lend to Banks Long-Term in Hopes They Will in Turn Lend Again

By admin / August 20, 2019

Come September, Draghi at the ECB will make loans to Eurozone banks on a long-term basis at rates less than the short-term lending window. The objective is to encourage banks to lend money to businesses. Nobody thinks about letting businesses bypass the banks mainly because the banks are in such a vulnerable state because Europe […]

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World of Central Banks

By admin / August 14, 2019

QUESTION: Hello, you said central bankers attend your conference and it means they know what’s coming. I guess they talk to governments and I wonder if governments will tell people what’s coming or they will pretend everything is fine until everyone ‘lose shirt’? MM ANSWER: No. Just about every intelligence agency also tunes in. That […]

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Can the US Government Really Force the Dollar Lower?

By admin / August 12, 2019

QUESTION: Hi Martin, What tools do the US have to TRY and manipulate their dollar lower (other than cutting interest rates) and in your opinion would they be successful? How much do they have in the Exchange Stabilization Fund? Do they have a defense plan to limit and control capital flows coming in? Thanks, RM […]

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Can the Fed really Control the Economy?

By admin / August 7, 2019

https://www.armstrongeconomics.com/wp-content/uploads/2016/02/Summers-Economy-Not-Predictable.mp4 QUESTION: This whirligig talk of whether the Fed cuts rates by 25 or 50 basis points is carnival-level absurdity. Does the Fed have the “pretense of knowledge,” as F.A. Hayek, said, that they can regulate the economy like turning up or down the thermostat? I know you don’t agree with this, Martin, but then, […]

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