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The Next Pearl Harbour? China’s Gold-Backed Crypto Currency Will Blindside US Dollar
The Next Pearl Harbour? China’s Gold-Backed Crypto Currency Will Blindside US Dollar “A date which will live in infamy.” Indeed, this weekend marks the 78th anniversary of the attack on Pearl Harbor in Hawaii, which opened the door for the United States to enter World War II. Turn on your TV and you will see military mavens rambling […]
Fed’s Third “Year-End” Repo Oversubscribed Again Amid Liquiduity Scramble As Dec 16 Tax Day Looms
Fed’s Third “Year-End” Repo Oversubscribed Again Amid Liquiduity Scramble As Dec 16 Tax Day Looms One week after the Fed’s second 42-day term repo which allowed dealers to lock in funding into the new year and which was again oversubscribed, confirming a growing scramble for year-end funding, traders were looking ahead to the result from […]
“The Fed Was Suddenly Facing Multiple LTCMs”: BIS Offers A Stunning Explanation Of What Really Happened On Repocalypse Day
“The Fed Was Suddenly Facing Multiple LTCMs”: BIS Offers A Stunning Explanation Of What Really Happened On Repocalypse Day About a month ago, we first laid out how the sequence of liquidity-shrinking events that started about a year ago, and which starred the largest US commercial bank, JPMorgan, ultimately culminated with the mid-September repo explosion. Specifically […]
Is A Global Crash Just Around The Corner? Central Banks Are Cutting At The Fastest Rate Since The Financial Crisis
Is A Global Crash Just Around The Corner? Central Banks Are Cutting At The Fastest Rate Since The Financial Crisis There is something very fishy about the world’s economic situation. On one hand, US president Trump keeps repeating that the US economy is the strongest it has ever been, with global strategists, economists and officials […]
Trapped
Trapped What? You thought a 850+ point drop in the $DJIA would result in a down week? No Sir. The unholy alliance has struck again. Massive jawboning by multiple administration officials about how well the China trade deal was going, a favorable jobs report and above all, the US Federal Reserve, all contributed to a furious rally to […]
Living On Borrowed Time
Living On Borrowed Time How soon until the consequences of our excesses catch up with us? The laws of physics are governed by cause and effect. But there can exist a time lag between the two. For instance: Note how the speed of both the bullet and the retracting latex far exceed that of the […]
Japan Is Again Forced To Stimulate Its Troubled Economy
Japan Is Again Forced To Stimulate Its Troubled Economy Japan faces a wall of debt that can only be addressed by printing more money and debasing its currency. This means they will be paying off their debt with worthless yen where possible and in many cases defaulting on the promises they have made. Japan currently has […]
Trade Wars Just Getting Started
Trade Wars Just Getting Started Markets are eagerly awaiting the conclusion of the so-called “phase one” trade deal between the U.S. and China. Both parties are trying to reach a mini-deal involving simple tariff reductions and a truce on new tariffs along with Chinese purchases of pork and soybeans from the U.S. The likely success […]
Every Bubble Eventually Finds its Pin
Every Bubble Eventually Finds its Pin The transfer of wealth from workers and savers to governments and big banks continued this week with Swiss-like precision. The process is both mechanical and subtle. Here in the USA the automated elegance of this ongoing operation receives little attention. NFL football. EBT card acceptance at Del Taco. Adam […]
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis”
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis” The Fed’s balance sheet is expanding at a faster rate than during QE1, QE2 or QE3. * * * Submitted by Howard Wang of Convoy Investments Has QE4 begun? The $1.2 trillion per month hole in the repo market. In the […]
Is Inflation Really Under Control
Is Inflation Really Under Control Recently, analysts have been discussing the pros and cons of using negative interest rates to keep the U.S. economy growing. Despite this, Fed Chairman Jerome Powell has said that he does not anticipate the Federal Reserve will implement a policy of negative interest rates as it may be detrimental to […]
Costs Are Spiraling Out of Control
Costs Are Spiraling Out of Control And how do we pay for these spiraling out of control costs? By borrowing more, of course. If we had to choose one “big picture” reason why the vast majority of households are losing ground, it would be: the costs of essentials are spiraling out of control. I’ve often […]
Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse
Inflation Is Coming: All the Trends That Were Deflationary Are Slowly Going in Reverse But of all potential economic outcomes, the one least anticipated and least priced in, is an uptick in inflation. Investing is all about probabilities. If the perceived odds of an event are high, certain securities will be priced based on those […]
Shale’s Debt-Fueled Drilling Boom Is Coming To An End
Shale’s Debt-Fueled Drilling Boom Is Coming To An End The financial struggles of the U.S. shale industry are becoming increasingly hard to ignore, but drillers in Appalachia are in particularly bad shape. The Permian has recently seen job losses, and for the first time since 2016, the hottest shale basin in the world has seen job […]
