Economy is a Monopoly board

BILL GROSS: The economy is a Monopoly board, and everybody is losing Bill Gross thinks the world economy is playing a losing game. In his latest investment outlook on Wednesday, Gross said credit creation had reached its limits and there was nothing central banks could do about it. This means the global economy, which Gross said is based on credit creation, in turn is slowly grinding to a halt. To illustrate his point, Gross compared the world economy to the board game Monopoly. Here’s how it’s supposed to work, according to…

Federal Reserve to raise interest rates

The Federal Reserve is going to raise interest rates again soon – and this will drive some people crazy Probably sooner than you — or at least the market — think. In a speech in Philadelphia on Monday, Fed Chair Janet Yellen, speaking for the final time before the Fed’s June 15 meeting, said that another interest rate hike from the Fed does not require the central bank meet both parts of its dual mandate first. Here’s the key bit from Yellen’s speech (emphasis added): I continue to believe that it will be appropriate…

Governments doing more and Central Banks less

G-20 wants Governments doing more and Central Banks less Finance chiefs from the world’s top economies committed their governments to doing more to boost global growth amid mounting concerns over the potency of monetary policy. In a pledge that will prove easier to write than deliver and may disappoint investors looking for a coordinated stimulus plan, the Group of 20 said “we will use fiscal policy flexibly to strengthen growth, job creation and confidence.” After a two-day meeting in Shanghai, finance ministers and central bank governors also doubled down on a line…