Delos, First Central Bank QUESTION: Dear Martin Wonder if you have any insights as to the history of the bank clearing process. Was the clearing process created mainly so banks could play games and earn interest with peoples’ money with the reasoning that it was to prevent money laundering? With technological advances today, one can accept […]

QUESTION: Marty you recently said that “the entire problem of lowering interest rates to ‘stimulate’ the economy demonstrates that central banks cannot really manage anything.” Is this statement really true? BG ANSWER: Absolutely. There is a basic presumption in all human activity that somehow we possess the power to do anything be it end Global […]

The IMF has recommended that all Central banks should issue their own cryptocurrencies. Indeed, they are looking at using Block Chain to keep track of taxes and to enforce negative interest rates with cryptocurrencies which would allow them to impose negative interest rates whenever necessary. With adopting cryptocurrencies that governments would control, we will come one step closer to losing all […]

QUESTION: Mr. Armstrong; I was at the Treasury Management Association of Canada (TMAC) conference in Vancouver when you appeared as a speaker as well as Peter Detallis of the Bank of Canada if I remember his name correctly. I was there at the cocktail party when the Finance Minister of Nova Scotia said you diminished the […]

      QUESTION: Dear Martin, Re: Non-Farm Payrolls Blowout All Analysts Show USA is Still Holding Up the World I am been following you for a number of years and believe you to be one of the best-informed analysts in the world. However, your latest email concerning the gobbledygook reported by the BLS for May’s […]

QUESTION: Socrates did an amazing job. It called the high in BitCoin right to the day. That makes me wonder. After thinking quietly about the claim that cryptocurrencies will replace everything as a new world monetary system because it will not be centralized and created by a central bank, this seems to be complete BS if […]

QUESTION: Hi Marty, I am curious if you have a take on the BOJ. They own almost all of the JJB market and have stated explicitly they will buy it all. Now they own 77% of the Japanese ETF market. Is it folly to suggest that the US gov’t or FED is not doing the exact […]

Central banks do not play games with the markets but it sure feels like we are being played by someone! Earlier this year the Bank of Japan, Federal Reserve and the European Central Bank all had similar balance sheets at around $4.5 trillion.  As we know, over the past ten years all three have risen from lower levels but have […]

QUESTION: There is a new trend that central banks are investing in the stock markets Is this true? What is the impact of this move? ANSWER: Yes. The reason has been rather straight forward. The only game in town has been US government bonds. Many have seen this as a problem the defeats diversification. Consequently, […]

Kenneth Rogoff,  the Professor of Economics at Harvard University, is stuck in a time warp where he cannot think out of the box even once. He is telling the central banks that the next recession they will have to resort to negative interest rates and they should prepare now. Despite the fact that negative rates have […]