September 2012 archive

Sep 24

The $16 Trillion Question: How much debt can the Federal Government sustain?

And an even more worrying question – what happens if the Federal Government cannot meet its debt servicing obligations? Federal debt has now risen well above 90% of American GDP – the tipping point at which Professors Reinhart and Rogoff found that sovereign governments starts struggling to service their debts in their book, This Time …

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Sep 15

Central Bankruptcy. Why Quantitative Easing could threaten the solvency of the central banks

The news this week that the US Federal Reserve is recommencing its quantitative easing programme on an open-ended basis, and that the European Central Bank is going to start buying the bonds of the peripheral Eurozone States to fulfil Mario Draghi’s commitment “to do whatever it takes” to save the Euro, call to mind an incident in my own investment career …

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Permanent link to this article: http://www.goldenguinea.com/central-bankruptcy-why-quantitative-easing-could-threaten-solvency-of-the-central-banks/

Sep 11

“Winding and unwinding extraordinary monetary policy”. A comment on the Scottish Economic Society’s annual lecture, September 11th 2012

Honestly, it wasn’t just the prospect of free wine and canapés that attracted me to the annual lecture of the Scottish Economic Society, hosted by RBS at the Royal Museum of Edinburgh tonight. I was genuinely interested in the subject, “Winding and Unwinding Extraordinary Monetary Policy”, particularly as it was given by a distinguished member …

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Permanent link to this article: http://www.goldenguinea.com/winding-and-unwinding-extraordinary-monetary-policy-a-comment-on-the-scottish-economic-societys-annual-lecture-septtember-11th-2012/