Tag Archives: ECB

May 14 2019

QE & Its Failure


Armstrong Economics Blog/Central Banks

Re-Posted May 14, 2019 by Martin Armstrong

QUESTION: Dear Martin,
During WEC in Rome I came to understand that the issue with QE is that it did not create any inflation in the USA. On the other hand, as you mentioned the inflation is being calculated in a different way that it used to be in the future. How come then the US does not just change the way of calculating the inflation in a way which would show it’s there? Wouldn’t that be an easier way than to do more QEs?
Thank you,

MK

ANSWER: The primary reason QE fails is because the economy is global. Central banks can no longer manage the economy, for the money does not remain in isolation. Additionally, as I pointed out in Rome, they may have negative interest rates, but that does not pass through. You cannot borrow money from a bank at negative rates.

May 13 2019

The Threat of Protectionism


Armstrong Economics Blog/Regulation

Re-Posted May 13, 2019 by Martin Armstrong

QUESTION: Marty:

I read you every day and I am one of the fortunate people to have a financial advisor that attends your Conference every year in the US.

I am wondering how Airbus will be affected in the future as the Euro further declines.

Thanks, RM

ANSWER: This is one of the aspects that caused the protectionism during the 1930s. As the turmoil in Europe unfolded, capital fled to the dollar pushing it higher. This invoked protectionism also propelled by the decline in commodity prices. The protectionism began with the agricultural sector and then spread to other areas.

As the dollar is pushed higher, we will see protectionism rise again probably 2021-2022. European companies that do not have professional hedging departments will suffer greatly.

May 13 2019

Remarkable Success – Nigel Farage Brexit Party Leaps to #1 in Weeks…


Re-Posted from The Conservative Tree House on May 12, 2019 by 

There’s a remarkable political restructuring happening on the other side of the Atlantic. Nigel Farage has led the U.K. Brexit Party into the leading political force in a matter of weeks.

With frustration over the intransigent unwillingness of the political elites who control power in the U.K. to deliver on the Brexit referendum, the grassroots “Brexit Party” was formed.  According to recent polling the movement now leads in advance of upcoming EU Parliament elections.  It’s possible another political earthquake is about to happen:

(Via Breitbart Media) New polling for the upcoming European Parliament elections shows another astonishing surge in support for Nigel Farage’s Brexit Party, while the governing Conservatives have crashed to fourth place on just 11 per cent.

The Opinium poll of 2,004 people, conducted online between the 8th and 10th of May, showed support for Mr Farage’s weeks-old party up 6 points to 34 per cent, more than Jeremy Corbyn’s Labour — down seven points to 21 per cent — and Theresa May’s Conservatives — down three points to just 11 per cent — combined.

The Conservative Party’s stunning collapse puts down in fourth place behind even the Liberal Democrats, who have been only a third force in British politics since the 1920s, and barely even that after arch-europhile Nick Clegg led them to near-obliteration in the 2015 general election. (read more)

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Nigel Farage

✔@Nigel_Farage

Accurate or not, these are great numbers and our movement for democracy is gathering pace.

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Piers Morgan

✔@piersmorgan

Nigel Farage looking & sounding like a leader on . Love him or loathe him, at least he believes in what he says & argues it with passion. His popularity comes from his authenticity & his new surge is happening because democracy is being denied to those who voted for Brexit.

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May 10 2019

Roger Scruton – The Future of European Civilization: Lessons for America


Published on Oct 14, 2015

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~A Russell Kirk Lecture at The Heritage Foundation’s B. Kenneth Simon Center for Principles and Politics~
May 10 2019

Moving from QE to Just Monetizing Government


Armstrong Economics Blog/Central Banks

Re-Posted May 10, 2019 by Martin Armstrong

QUESTION: Mr, Armstrong; Why the push for lower interest rates again in developed markets? You have stated the QE has been a total failure. Are they incapable of doing anything else?

KE

ANSWER: We are switching from QE to a new reality of budget management. If interest rates rise on government bonds, the budget blows out. At this stage, the Fed is toying with the idea of setting benchmark rates for 2 to 10-year instruments. This will be different than QE. It will be the collapse of government bond markets on a global scale.

Categories: Central Banks, Interest Ra