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- Bill Gross and the Rise and Fall of Bond Market Nirvana
- Economic Direction as Seen Below the Radar
- An Ode to George Bailey, Credit in a Banking-less World and How Much QE Is Enough
- The Writing Is on the Wall: There Will Be Wealth Taxes
- The Writing Is On the Wall: Wealth Protection in Today’s Environment
- The Vulnerability of Private Wealth to Government Financial Stress
QEs, Currency Wars, the Trillion Dollar Platinum Coin and the Route to “Modern” Inflation
A government faced with financing its deficits in quantities some multiple of private saving must resort to monetary schemes in order to keep its promises to spend. Monetary schemes are essentially costless ways to pay the government’s bills today while … Continue reading →
About the Spellman ReportLew Spellman is a Professor of Finance at the University of Texas McCombs School of Business. The Spellman Report seeks to interpret current and future trends in the economy and financial markets from the perspective of history, theory, policy and market expectations.
Tag Archives: Quantitative Ease
Though financial regulation has taken the friendly local loan officer (George Bailey) out of the credit equation, the Fed’s Quantitative Ease is creating credit at close to record rates of growth. The credit generation is not in the usual ways, but in amounts sufficient to generate an economic expansion. Read about the creative market response to increases in the monetary base when banks are handcuffed to Dodd-Frank. Continue reading
Federal Reserve metaphors of tapering, exit and de-acceleration are but face saving diversions in the dialogue from the hard fact that this is a requiem not just for QE3 but also a requiem for the idea that the Fed is able to generate further lending and spending. In this new global financing world, stimulus from money had moved to the Shadow Banking System which has reached its upper limit not despite QE3 but because of it. Continue reading
Economies have natural self-correction mechanisms to keep the economic train on the tracks and moving at accustomed speed unless undercut by governments. In their desperation for tax revenues, Euro zone governments have “outed” their foreign depositors to the foreigners’ home taxing authority. Thus, the slow moving train wreck has just picked up speed. Continue reading
A printing press is a handy thing to have. When a government or central bank can fund itself with money or claims on money, it can buy a lot of things and solve a host of problems, all without the need to tax. I wish I had one. Continue reading