BloombergBill Bonner
So we can see that while the central bank's balance sheet does expand, the only impact in the private sector is to change the composition of the banks' balance sheets, exchanging bonds for reserves. The total assets of the private sector don't change. Hence no money is being created any...
Currency devaluation may lower productivity, since imports of capital equipment and machinery may become too expensive. Devaluation also significantly reduces the overseaspurchasing powerof a nation’s citizens. Below, we look at the three top reasons why a country would pursue a policy of devaluation...
Why don't we simply print 16 billion $1,000 bills and pay off our debt? Why does the US have low inflation despite "money printing?" Which of the following is not a reason why the Japanese tend to keep large amounts of cash? a. Banks have invested heavil...
In short, if you are looking for an investment with as little risk as possible from an entity with reliable credit and a legal obligation to return your money, government bonds are the way to go. You may not make much profit, depending on the duration of the bond, but you are also un...
I don’t mean to exaggerate its importance. A small but growing contingent of Europeans want a Plan B away from potential large scale war in Europe. Portugal has historically been a safe haven, and its islands of Madeira and the Azores even more so. I believe we’ll increa...
China has tight, state-dominated control over its economy and can manage inflation through other measures likesubsidiesandprice controls. Other countries don’t have such a high level of control and have to give in to the market pressures of a free or partially free economy. ...
If not, you probably fell behind. (Sorry to break the bad news, please don’t shoot the messenger!) We’re only left with one option. We have to start buying assets as fast as possible. It’s the only way to make the jump and get on the right side of the Fed’s money printer...
Why Printing Money Sometimes Works for Central Banksresume near-normal lending.by Paul Kasriel
So we can see that while the central bank's balance sheet does expand, the only impact in the private sector is to change the composition of the banks' balance sheets, exchanging bonds for reserves. The total assets of the private sector don't change. Hence no money is being created any...