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What Happens If Most Businesses & Consumers Tighten Their Belts at the Same Time?
What Happens If Most Businesses & Consumers Tighten Their Belts at the Same Time? Europe may be about to find out. 128 days with my Mother-in-Law. As market players cling to the hope that a V-shaped economic recovery is still possible in Europe, to match the central-bank engineered rebounds of benchmark indexes such as Germany’s DAX […]
Rabobank: “We Live In A Pretty Crazy World Right Now”
Rabobank: “We Live In A Pretty Crazy World Right Now” Crazy World I think we can all agree that we live in a pretty crazy world right now: and that’s an appropriate title for the Daily today too, for reasons that will be explained shortly. It’s a world where we are seeing staggering increases in […]
Oil Price Crash Sparks A Wave Of Banking Mergers In The Middle East
Oil Price Crash Sparks A Wave Of Banking Mergers In The Middle East The historic oil price crash and Covid-19 pandemic have left major producers of the commodity in a deep economic crisis. Dramatic production cuts by OPEC+ has exacerbated the situation by further lowering export inflows for economies that depend heavily on oil dollars. […]
Weekly Commentary: Utmost Crazy
Weekly Commentary: Utmost Crazy The Shanghai Composite surged 7.3% this week, increasing y-t-d gains to 10.9%. The CSI 300 rose 7.6%, with 2020 gains of 16.0%. China’s growth-oriented ChiNext Index’s 12.8% surge boosted year-to-date gains to 54.5%. Copper jumped 7.1% this week. Aluminum rose 4.6%, Nickel 4.0%, Zinc 8.3%, Silver 4.2%, Lead 4.2%, and Palladium […]
The World Is Drowning In Debt
The World Is Drowning In Debt According to the IMF, global fiscal support in response to the crisis will be more than 9 trillion US dollars, approximately 12% of world GDP. This premature, clearly rushed, probably excessive, and often misguided chain of so-called stimulus plans will distort public finances in a way in which we have not […]
Can An Increase In the Demand For Money Neutralize the Effect of a Corresponding Increase in Money Supply?
CAN AN INCREASE IN THE DEMAND FOR MONEY NEUTRALIZE THE EFFECT OF A CORRESPONDING INCREASE IN MONEY SUPPLY? According to popular thinking, not every increase in the supply of money will have an effect on the production of goods. For instance, if an increase in the supply is matched by a corresponding increase in the […]
The Bubble In A Fairy Tale World
The Bubble In A Fairy Tale World Great interview with Michael Novogratz, Galaxy Digital founder, CEO, and chairman. He sounds exactly like the global macro heads at GMM. His money quotes from the July 8th CNBC interview should sound very familiar to our readers. Money Quotes Macro set-up is so perfect for something like gold…central banks around […]
A Surge in Small Business Bankruptcies is Underway
A Surge in Small Business Bankruptcies is Underway The new rules make it easier for small businesses to file for chapter 11. And they are. Small Businesses Walking Away In 2008, homeowners walked away from mortgages. Thanks to the Small Business Reorganization Act of 2019 (SBRA), in effect as of February 19, 2020, small businesses have an […]
The new deal is a bad old deal
The new deal is a bad old deal So far, the current economic situation, together with the response by major governments, compares with the run-in to the depression of the 1930s. Yet to come in the repetitious credit cycle is the collapse in financial asset values and a banking crisis. When the scale of the […]
Mexico State Oil Company Files $22 Billion Debt Swap amid IMF Threats and White House Visit
THE “NEW NAFTA” Mexico State Oil Company Files $22 Billion Debt Swap amid IMF Threats and White House Visit Mexico’s economy is put in the crosshairs by the IMF as the “new NAFTA” takes effect and AMLO is forced to make concessions to avoid an even deeper recession. Mexico’s president, Andres Manuel Lopez Obrador, known […]
Green economic growth is an article of ‘faith’ devoid of scientific evidence
Green economic growth is an article of ‘faith’ devoid of scientific evidence Crack team that advised UN Global Sustainable Development Report settle a longstanding debate with hard empirical data For years, financial institutions and governments have been focused on the idea of ‘decoupling’ GDP growth from resource use. This has been driven by the recognition […]
Drumbeats of the Epocalypse: The Economic Death March Has Come to Town!
Drumbeats of the Epocalypse: The Economic Death March Has Come to Town! The coronavirus pandemic inflicted a “swift and massive shock” that has caused the broadest collapse of the global economy since 1870 despite unprecedented government support, the World Bank said.… “This is a deeply sobering outlook, with the crisis likely to leave long-lasting scars […]
The Sinking Titanic’s Great Pumps Finally Fail
The Sinking Titanic’s Great Pumps Finally Fail The greater fools still partying in the first-class lounge are in denial that even the greatest, most technologically advanced ship can sink. On April 14, 1912, the liner Titanic, considered unsinkable due to its watertight compartments and other features, struck a glancing blow against a massive iceberg on that moonless, weirdly […]
A Serious Message From Chris Martenson
A Serious Message From Chris Martenson Time is running short to brace for impact Like a windstorm toppling a hollowed-out tree, SARS-CoV-2 didn’t cause the current recession so much as it exposed how rotten things already were. Even before SARS-CoV-2, households were struggling. Far too many were limping along without any savings at all, one […]
A Staggering Number of Businesses Are Set to Collapse as COVID-19 Continues to Accelerate
A Staggering Number of Businesses Are Set to Collapse as COVID-19 Continues to Accelerate Despite the chaos of the world around us, despite spiking COVID-19 cases, and despite a record number of businesses shuttering their doors (many never to re-open again), markets remain relatively healthy. (Chart source, google finance) This obviously defies all common sense and […]
