Stratfor: Limits of Turkey’s Interest Rate Hike

by STRATFOR With a dramatic hike in Turkey’s overnight lending rate from 7.75 to 12.5 percent announced on Jan. 28, Turkish Central Bank Gov. Erdem Basci followed through on his earlier promise to use interest rates as a weapon to defend Turkey’s currency, the lira. While the hike is a bolder-than-expected move designed to jolt …

Terminal Velocity (26) “My Friend, I’ll Say It Clear”

Written by Adam Whitehead, KeySignals.com Terminal Velocity “And Now the End Is Near” used the allegory of Federal Reserve Governors singing the from the same page (like the Rat Pack) but in the wrong order. The dissonance created ripples in capital markets; which became waves of much larger amplitude in the real economy. Terminal Velocity …

Not Believing the Economy Will Collapse As QE Is Eased

Written by Steven Hansen Will the higher interest rates already being felt (supposedly caused by the Fed’s more definitive yet indefinite quantitative easing tapering announcement) kill the economy? This time Nobel Laureate Professor Paul Krugman stated:

Cliffs, Nightmares, and Hidden Consumer Taxes

Written by Steven Hansen While watching Chairman Bernanke weave and bob in front of Congress this past week, I started to ponder what he said: The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 …