What will the Fed’s interest rate decision be? All markets are holding their breath waiting for this decision. Expectations are in two different ways, as predicted. Some, especially the economy newspapers, are united in the opinion that the Fed will not increase interest rates. Another segment, namely, a group led by Wall Street, citing the critical increase in inflation and thinks that the Fed will take…
Margin Debt, Is it useful to predict the stock market crash? One of the most important indicators of the global crisis is the “margin debt” developed by US investor Mike Maloney.
There has always been an inverse relationship between gold price and the dollar. One of the measurement scales of the demand for the dollar is the DXY index, which is the average index of the dollar equivalent of 5 countries’ currencies. If the DXY index is increasing, it means that the demand for dollars in the world is increasing. As…
Money is created in two basic ways today. The first is cash (fiat / fiat currency) in paper and metal form issued by Central Banks, and the other is loans (debt) created by commercial banks depending on the partial reserve system. Here, we’ll talk about partial reserve banking. It would be descriptive and useful to talk about full reserve banking…
The Federal Reserve, the Fed, started overnight reverse repo transactions in 2013. The aim of reverse repo transactions is to control the short-term interest rates. Reverse repo (RRP), reverse repurchase agreements, is a transaction that central banks implement when they want to reduce excess cash in the market. In this way, it is aimed to suppress the downward interest rate.…
Money can essentially be studied in two forms, these are the limited (solid) form and the unlimited form. Limited money is the metals with intrinsic value such as gold, silver, platinum, which cannot be produced in the desired amount by the states, whose amount is limited in the world. Recently, digital currencies have been tried to be added to these.…
GREAT TRANSFORMATION FROM MONETARY ECONOMY TO INFORMATION ECONOMY The economic system we have been in for nearly 300 years since the Industrial Revolution is a monetary system. Firstly, European countries, USA; The money economy, which developed with the industrial revolution in developed countries such as Japan, turned towards digitalization with the production of microchips in the 1950s. Today, the common…
The ratio of the total household debt to production, which includes the debt of the private sector and households on a country basis as well as the debt of the states in the world, is another important indicator that can give an idea about the magnitude of the destruction to be experienced in the crisis.