By EconMatters In this Video, we discuss the fact that Central Banks have basically morphed into Hedge Funds with similar risky investing strategies, except they buy without any regard to the underlying fundamentals of the assets they are buying. When did the Swiss Citizens say it was the proper role for the Swiss National Bank to be buying US Stocks? How is this stimulating the Swiss Economy? Central Banks have really...
Read More »Which Way to a Multipolar World?
Events of the previous year, such as Brexit or the election of Donald Trump, seem to have marked the end of globalization as we know it. The world development is set to change. Will we observe the rise of multiple regional powers? Credit Suisse Research Institute in their latest report takes a look at the shift towards a multipolar world....
Read More »The Dark Side of Digitalization
Globalization and digitization make IT systems vulnerable to attack. Investing in security is therefore essential, and hackers can actually help in this regard. Cybersecurity was not an issue in the 1980s, when the internet was still in its infancy. Since then, however, the number and the...
Read More »Brazil: Continuing Problems
The cruelest part, perhaps, of this economic condition globally is how it plays against type. In all prior cycles, economies of all kinds and orientations all over the globe would go into recession and then bounce right of it once at the bottom. It was often difficult to see the bottom, of course, but once recovery happened there was no arguing against it. Since the Great “Recession”, which was global, no matter what...
Read More »Forget Bitcoin, but Remember Blockchain?
The most obvious potential use for blockchain technology is the one that already exists – payment systems. But there is much more to blockchain than this. Ever since bitcoin came on the scene in 2009, evangelists have proclaimed that the end of fiat currency is nigh. A so-called cryptocurrency,...
Read More »Is Bitcoin Safe?
Bitcoin isn't mainstream, and it may never be. And yet it would be unwise to ignore it. Some $14.9 billion worth of bitcoins were in circulation in January 2017, and blockchain, the technology underpinning bitcoin, has attracted plenty of attention for its disruptive potential in banking, trading, and even media. So how safe is bitcoin?...
Read More »Donald Trump’s Trade Policy Options
So far, there has been little clarity as to which specific trade policies the new president will introduce, but given how high trade ranks on his agenda, this will likely change quickly. But what actual powers does a US president have in the area of trade, and what measures might Mr. Trump implement?...
Read More »Economic Normalization vs. Political Polarization
The global economy appears to be enjoying a solid start to 2017. Business surveys such as the Purchasing Managers' Indices (PMI) indicate that momentum accelerated toward the end of 2016 in nearly all major economies. Still low interest rates, stable commodity prices, as well as a generally...
Read More »80 percent Of Central Banks Plan To Buy More Stocks
Regular readers remember how, when we first reported around the time of our launch eight years ago that central banks buy stocks, intervene and prop up markets, and generally manipulate equities in order to maintain confidence in a collapsing system, and avoid a liquidation panic and bank runs, it was branded “fake news” by the established financial “kommentariat.” What a difference eight years makes, because today none...
Read More »Trade Friction a Key Risk as Trump Takes Power
The incoming US president Donald Trump has often struck a belligerent tone with regard to trade relations. Much of his anti-trade narrative – made public in tweets and remarks made on the campaign trail – has focused on China, raising concerns over trade frictions, if not an outright trade war. Yet what powers does the US president have in the area of...
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