Tag Archives: FATCA

The Deflationary Trap and the Central Bank Game of Chess

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Few who lived through the “runaway” inflation of the 1970s would have dreamed that someday inflation would be a desirable public policy? We have come to find out that it surely beats deflation. But how to achieve inflation has proven to be elusive. Continue reading

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America’s Exorbitant Privilege is Skating on Thin Ice

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The willingness of the rest of the world to hold a block of its assets denominated in the U.S. dollar means that U. S. asset prices are enhanced and the U. S. is able to sell a substantial portion of its government debt to foreign holders at cheaper interest rates. This is known to foreigners are U.S. “Exorbitant Privilege.” But that privilege is being squandered by short sighted U. S. policies and plans are underway to switch reserve currencies. Continue reading

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