Archive | March, 2016

Strong Dollar Six

28 Mar

The strong U.S. dollar can be joyous or full of despair, depending on your point of view. For vacationers, the strong dollar is great because it goes further overseas. But what does the strong U.S. dollar mean for businesses? This is where the despair can set in. The dollar, which has appreciated 15 percent against [...]

Is There a War on Cash?

21 Mar

The negative interest rate environment spreading globally is making some want to literally kill cash. Financial experts worldwide have called for eliminating large cash bills by withdrawing them fromĀ circulationĀ over time. For instance, Larry Summers, a former Treasury secretary and advisor to President Obama, wants to stop issuing new $100 bills and remove old ones from [...]

Beware the Potential Stagflation

14 Mar

This month’s policy meeting will mean a difficult decision for the Fed – does it raise the federal funds rate or leave it unchanged? The Fed’s Board of Governors wants to raise rates, and has wanted to for some time. The Governors finally did it last December and said they’ll do it four times in [...]

From ZIRP to NIRP

11 Mar

This post’s title might make you think I’m losing my sanity or living in a fantasy world. I assure you, I’m not. ZIRP and NIRP aren’t imaginary goblins, though they can be scary. They’re monetary policies, and they’re in effect around the world. A ZIRP, or Zero Interest Rate Policy, is an aggressive policy aimed [...]