Articles by Jonathan Wellum
December 2, 2013
Without artificially low interest rates and accommodative central banks willing to "monetize" large swaths of government debt by printing money, governments would be more constrained and there would be greater financial discipline imposed on governments through higher interest rates But what happens when central banks are forced to taper their money printing and interest rates increase, even by a little? Anyone can service massive levels of debt when rates are ultra-low
April 2, 2013
Financial repression (manipulation of interest rates below the inflation rate) is entering its fifth year and has only provided governments and their citizens around the world with the increased capacity to continue gorging on savers and investors So while we are looking across the pond at the disas...
August 7, 2012
Ontario is in a dire financial position, but try telling that to teachers or the public service in general Last year Ontario taxpayers contributed $1.4 billion to the Teachers' Fund in regular contributions, plus an additional $525 million in top-up payments to be allocated towards the massive multi...
May 7, 2012
If we are serious about minimizing wealth inequalities we must start by slashing the size of the state, collateralizing our money, and rewarding the productive class by allowing them to build up the necessary capital to underpin our economy. How can wealth inequalities not increase when the state bu...
April 23, 2012
A zero interest rate policy represents a wealth transfer from savers to banks, debtors, and leveraged investors Zero interest rate policies are designed to keep nominal interest rates below inflation, a condition called "negative real rates" ...
March 12, 2012
How can more debt, more money printing, more government, more manipulation of the markets and interest rates do anything but strangle private initiative and drive real capital and savings out of the economy? At the very moment when we need more capital and savings to de-leverage us from this debt ni...