Thursday, January 22, 2015


Econ Comments & Analysis                                                                                            
Market Watch | Why the ECB’s QE won’t delay Fed rate increases
Investors are beginning to bet that the Federal Reserve will lose its nerve and postpone the increase in interest rates that the central bank has hinted would come sometime this summer. They’re going to lose that bet because the strong dollar isn’t signaling weakness in the U.S. economy, but strength.
Market Watch | As central banks surprise, Fed may have to throw in the towel
The surprises coming out of the Swiss National Bank, the European Central Bank, the Bank of England and the Bank of Canada spell tectonic shifts occurring in the global economy that inevitably will hit these shores.
Forbes | Lower Inflation: Another Chance For Government Mistakes
World inflation is falling, along with oil prices. This shouldn’t have caught financial markets by surprise, since private-sector credit growth remains very slow.
Wall Street Journal | The World’s Monetary Dead End
Central banks in the U.S., Japan and Europe are trapped in a loop. They are fully invested in the theory that zero rates and bond buying are stimulative and add to inflation, yet growth, inflation and median incomes keep going down.