Monthly Archives: April 2014

At what point does Money Printing go toxic?

The argument that central banks should not shrink their balance-sheets to “normal”, i.e. pre-crisis levels but leave larger amounts of liquidity in the system for stability’s sake is wrong. It would in deed turn what once was a legitimate policy requirement into a very damaging morale hazard. Continue reading

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The Psychology of an Erupting Massive Fear

Professor Kotlikoff’s analysis of the systemic risk which the 207 trillion US$ public debt is posing to the US bond market is correct. We are no sure, however, whether the danger of that bond market flipping is as imminent as Mr. Kotlikoff has us believe. Continue reading

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