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Descent of the Global Monetary System

Tom Spencer

In this context, it is worth noting that rising prices also tend to show up in asset price bubbles, such as the Japanese Asset Price Bubble of 1986 to 1991 , the Dotcom Bubble of the 1990s , and the US Housing Bubble of 2002 to 2006. While focusing intently on consumer prices, central banks tend to ignore rising asset prices.

System 88
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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

A possible explanation for the SEP’s prediction of a rapid catch-up to potential GDP after 2009 is that participants overestimated the efficacy of monetary policy in the aftermath of a so-called balance-sheet recession. Month/Year Current Conditions Expected Conditions 2/1/2002 13.80 -11.92 7/2015 -14.92 8/2015 -14.67

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Bulls and Bears Debate China: Property Bubble Expands Again; GDP Growth Picks Up; Economic Recovery Underway? No Says Michael Pettis

MishTalk

This means that the foreign currency reserves are simply the asset side of a balance sheet against which there are liabilities. billion yuan in August, a record in data going back to 2002, after 192.7 Yesterday’s figures showed entrusted loans of 293.8 billion yuan in July. Bankers’ acceptance bills were 304.5

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Chicago Tribune estimated it at approximately $400 million : In 2002, for example, the city used tax-exempt bonds to pay an arbitration award involving the Fraternal Order of Police. It is not a balance sheet test, but a cash flow test. This is one of several eligibility criteria.

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Swiss Bank Hits Customers With Negative Interest Rates; Crazy? What About Velocity?

MishTalk

With its balance sheet totalling nearly 1.6 Inquiring minds may also be interested in the Frank Shostak's 2002 article Is Velocity Like Magic? The big Swiss banks passed on some of the pain from the Swiss central bank’s -0.75 Much of my understanding of velocity comes from that article.

Banking 28