A dispute is brewing in the financial press between two financial heavyweights: Paul Sheard, Executive Vice President and Chief Economist of S&P Global, and Urjit Patel, Governor of the Reserve Bank of India.
In this very informative and timely white paper, veteran financial advisor Tim Hayes walks through the process of where new money comes from and the role it plays in fueling bubbles and wealth inequality.
Seven months into a plan where $36 billion should have been shrunk only $14 billion has been reduced. (The Federal Reserves owned $1.68 trillion of mortgage-backed securities when they started)
One big flaw in the discussion about the congressional tax bill is the lack of understanding of the additional revenue from the sale of new government bonds that will be required to fund the government.
If your bank account dropped from $100,000 to $80,000, would you be inclined to spend more, or less? Would it matter if the drop happened all at once, or over 16 months? This is the predicament in which Federal Reserve Chairman front-runner candidate Jerome Powell finds himself: keeping the economy growing when less money is in it.
Retirement plan contribution limits in 2019 were adjusted up by the U.S. Congress to reflect the higher inflation rates in the economy.