Yesterday, the US Federal Reserve decided not to reduce its money creation programme of $85 billion a month. The Cobden Centre publishes a response, No tapering, no surprise: It was not too surprising that there is going to be no tapering for some very good reasons. The commencement of tapering would have led deliberately to bond yields rising, triggered by an increase in sales of government bonds to the public and at the same time escalating sales by foreign governments as […]
Tag Archives: Cobden Centre
An article for The Cobden Centre following my World at One appearance: The essence of what the Bank has announced is well known: they have begun using forward guidance to anchor both inflation and interest rate expectations as a cover for more active monetary policy. This will usher in a new age of monetary Kremlinology. Read more via Mark Carney’s grand experiment began today » The Cobden Centre.
The latest strategy note from Tullet Prebon asks, “What’s the big idea?” with the subtitle “the imperative need for a new ideology”, writing: Effective government is not simply a matter of management. Even in good times, competence is barely enough. In bad times, ideological clarity is imperative, and the lack of a clear, ideas-based strategy is the black hole at the heart of the coalition administration. This chart is particularly informative: They comment, “The centre-right is in desperate need of a […]
Via Is there no escape from the euro? Intellectual honesty requires us to admit that there are important costs to exiting the euro, such as legal problems or the disentangling of the ECB. However, these costs can be mitigated by reforms or clever handling. Some of the alleged costs are actually benefits from the point of liberty, such as political costs or liberating capital flows. Indeed, other costs may be seen as an opportunity, such as a banking crisis that […]
Via the TaxPayers’ Alliance, this video explains vividly that the Government is spending £22,218 every second. In this week’s MoneyWeek, Merryn Somerset Webb’s editorial is titled “Slash spending and taxes”. She refers to Dr Tim Morgan’s work which explains that the economy has for too long been dependent on private borrowing and public spending and that, now these are “dead in the water”, 70% of the economy is incapable of growth. I have previously explained that this Government will be […]