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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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6 Reasons Inflation is Higher than You Think

Tom Spencer

Some market commentators saw this coming, and those same players predict that higher inflation will persist. The definition of inflation has changed. The generally accepted definition of inflation has changed over time. Inflation in America is currently running hot, with the official rate hitting 6.2% The bottom line.

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Would a Bund by any other name smell as sweet?

Tom Spencer

Definitions. Thirdly, European banks are currently focused on building their balance sheets not on lending. While Bunds may still smell sweet, weak financial markets in Europe are a cause for concern. Weak financial markets increase the risk that one or more European banks will fail. Helpful Links. in Economics.

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Another Definition of Deflation: Antal Fekete Defines Deflation as a "Pathological Slowing in the Velocity of Money"

MishTalk

The simple definition V = GDP/M where V is velocity, M is money supply, and GDP is Gross Domestic Product. I prefer the definition of deflation as a pathological slowing in the velocity of money. However, I disagree with his definition of deflation based on velocity. It''s simply a truism based on Fekete''s definition.

Banking 28
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China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

MishTalk

China''s Move to Market-Set Rates Let''s step back to December 8 and look at China Relaxes Grip on Interest Rates China is relaxing its grip on interest rates with the launch of a financial instrument that allows banks to trade deposits with each other at market-determined prices. China’s credit boom is still in full swing.

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War Between Spain and Germany Erupts Over Next Round of Watered Down Stress Tests; Germany Complains About the "Carry Trade"

MishTalk

Draghiz e: "The test is credible because the ultimate purpose of it is to restore or strengthen private sector confidence in the soundness of the banks, in the quality of their balance sheets" Mish : The test is credible because we say it is. Spanish officials claim it makes no sense to penalize these asset as if they were bad loans.

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ECB Waters Down 2014 Stress Tests Second Time; Yet Another Sham Stress Test

MishTalk

But now ECB president Mario Draghi, says debt that banks hold to maturity will not have to be set at market value or penalized. The ECB will not force European banks to adjust to market value of sovereign debt portfolios that are classified as held to maturity.