For the last twenty-five years, the Fed flow of funds accounts reveal two dominant forces supporting US stock and bond markets. Stocks: Stocks have been driven upwards by corporate executives and mutual fund managers who have backed stock-buybacks/executive option schemes to mutual advantage. As described in the article, “The quarter-century buyback […]

The rest of the world holds $16.9 trillion in dollar financial assets, and China owns a large, although indeterminate, portion of these assets. With Nancy Pelosi, Chris Dodd, Barney Frank, and Harry Reed having taken over monetary policy from a weak, inexperienced President Obama and with the Democrat-controlled Congress freely enacting highly inflationary spending programs — […]

Despite remarks of Chinese officials and offhand comments of the US Treasury Secretary, the Fed flow of funds accounts for Q4 2008 indicate that the US Monetary Authority acted, in fact, like a world central banker, supporting the dollar as the primary international reserve currency. First, public funds used to support AIG were allowed […]