Switzerland is No Longer Neutral
“Neutral like Switzerland” can no longer be a saying as the Swiss government has announced it is joining the European Sky Shield Initiative (ESSI) to develop a shared missile defense [...]
The Great Unknown
QUESTION: Martin, if Europe and Japan have destroyed their bond markets, would it be a good idea for them to get the government out of the bond market and have short term rates be floating in the free market? The free market would probably help since they don’t know how to move rates correctly.
RG
ANSWER: What will happen is that there is already unfolding a bifurcation in interest rates with a widening spread between real rates (Private Sector) and government. If they allow government rates to float, that means they must abandon QE.
Neither the BoJ nor the ECB is ready to admit total failure. This means that the entire Keynesian-Monetarist tools have failed and they have no economic theory upon which to manage the economy. That means the government cannot control the economy and therein lies the denial of power.
Welcome to the Great Unknown
Latest Posts
Are Illegal Migrants Entitled to Medicaid?
Kamala Harris and Joe Biden have declared that illegal migrants may have access to Medicaid in a move that will cost billions. Individual state rights are coming into play once [...]
US Budget Deficit Third-Highest on Record
The United States Treasury reported a $1.833 trillion budget deficit for the fiscal year ending September 30. This marks the third-highest deficit on record, but it is solely due to [...]
Market Talk – October 22, 2024
ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 542.64 points or -1.39% to 38,411.96 • Shanghai increased 17.76 points or 0.54% to [...]
