Tag: economic stimulus

Markets Crash as Monetary Laughing Gas Fades

Commentary The main issue in the economy is that there are two generations of market participants who have only witnessed expansionary policies. That’s why the most pressing question for investors is not where earnings are headed or what the rate of change in economic growth is, but when central banks will pivot. The Federal Reserve…


Economic Stimulus Should Have Stopped Earlier to Tame Inflation, Bank of Canada Says

Bank of Canada deputy governor Paul Beaudry said in hindsight, governments and central banks should have withdrawn stimulus measures earlier as economies recovered from the COVID-19 pandemic, which likely would have kept a lid on inflation. In a speech at the University of Waterloo on Sept. 20, Beaudry said a faster global withdrawal of fiscal…


2022, the Year of the Hangover?

Commentary The global recovery has slowed down significantly since the peak of the re-opening effect in June 2021. What many expected would be a multi-year cycle of above-trend growth is proving to be a more modest bounce. Furthermore, according to Bloomberg Economics, the global economy will likely grow in the next 10 years at a…


Unprecedented Spending Leads Australia out of Recession: Treasurer

The Australian Treasurer Josh Frydenberg said an unprecedented level of spending enabled the country to endure a COVID-19 recession. The latest figures from the Australian Bureau of Statistics (ABS) revealed that monthly retail sales rose for the first time in September since the onset of Delta restrictions in May. “We’ve certainly had to spend in…


Disappointing Growth Shows Diminishing Return of Stimulus

Commentary The U.S. economy recovered at a 6.5 percent annualized rate in the second quarter of 2021, and gross domestic product (GDP) is now above the pre-pandemic level. This should be viewed as good news, until we put it in the context of the largest fiscal and monetary stimulus in recent history. With the Federal…


Biden’s ‘Great Leap Forward’ Will Encounter an Impassable Barrier

Commentary Joe Biden assumed a gentle image in his 40-year plus political career. However, within the first three months as U.S. President, he has proposed an expensive and revolutionary plan. He not only issued nearly 60 executive orders to realize the many dreams the Democrats have had for years, such as gender diversity, legalization of…