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The Fed’s “Insurance” Rate Cuts Didn’t Work. Now For The Emergency Cuts
The Fed’s “Insurance” Rate Cuts Didn’t Work. Now For The Emergency Cuts Pity the guys now running the Fed. They’ve inherited an economy that requires ever-bigger infusions of new credit and ever-lower interest rates to avoid financial cardiac arrest. But with interest rates already perilously close to zero the usual leeway is no longer there. […]
Peter Schiff: The Party Is Over
Peter Schiff: The Party Is Over As Peter Schiff put it in his podcast, if the first trading day of the fourth quarter was a sign of things to come, bulls on Wall Street are in for a rough end to the year. In fact, Peter said the party is over and you don’t want […]
Central Bankers Go Green… Why?
Central Bankers Go Green… Why? I was told many depressing things as a child. Watching World Vision infomercials educating the west to the want and misery suffered by millions of children in the third world, I wasn’t alone in asking adults “why”? When I enjoyed all the comforts of food security, electricity and running water, […]
We Finally Understand How Destructive Negative Interest Rates Actually Are
We Finally Understand How Destructive Negative Interest Rates Actually Are We are in the midst of a strange economic experiment. Vast quantities of negative-yielding debt are currently sloshing around the global economy. While the amount of negative-yielding bonds has dropped recently from a mind-boggling number in excess of $17 trillion, reinvigorated central bank easing across […]
A U.S. Economic Slowdown Has Been Confirmed, And We Are Being Warned That “More Damage” Is Ahead
A U.S. Economic Slowdown Has Been Confirmed, And We Are Being Warned That “More Damage” Is Ahead We just witnessed the worst month for U.S. manufacturers in more than 10 years, and nobody seems optimistic that things are going to get much better any time soon. In fact, one expert is warning that “more damage” […]
US Gross National Debt Jumps by $1.2 Trillion in Fiscal 2019, to $22.7 Trillion, Hits 106.5% of GDP
US Gross National Debt Jumps by $1.2 Trillion in Fiscal 2019, to $22.7 Trillion, Hits 106.5% of GDP But what happens if there’s actually a recession? The US gross national debt jumped by $110 billion on the last two business days of Fiscal Year 2019, and by a breath-taking $1.2 trillion during the entire fiscal […]
Here Is The Megabank Behind September’s Repo Shock
Here Is The Megabank Behind September’s Repo Shock Over the weekend, when trying to isolate the bank(s) behind the recent repocalypse, we looked at the aggregate cash levels of commercial banks in the US (which include foreign banks operating in the US) as published each week by the Fed, and found that cash at foreign […]
Do Banks Require Savings to Accommodate Demand for Lending?
DO BANKS REQUIRE SAVINGS TO ACCOMMODATE DEMAND FOR LENDING? There is an emerging view held by many commentators that it is banks and not the central bank that are key for the expansion of money. This way of thinking is promoted these days by the followers of the post Keynesian school of economics (PK).[1] In a […]
Getting Ready For The Stock Market Crash…
Getting Ready For The Stock Market Crash… It is something of a tradition amongst market commentators to make bold stock market calls because they gain you notoriety if you get it right. Over here at AiC, I don’t particularly care what people think. I’m here to make money—that’s it. Therefore, I’ve refrained from big market […]
The Disaster of Negative Interest Rates
The Disaster of Negative Interest Rates The dollar strengthened against the euro in August, merely in anticipation of the European Central Bank slashing its key interest rate further into negative territory. Investors were fleeing into the dollar, prompting President Trump to tweet on Aug. 30: The Euro is dropping against the Dollar “like crazy,” giving […]
Liquidity Crisis & the Pending European Banking Crisis
Liquidity Crisis & the Pending European Banking Crisis A lot of people have been writing in about the liquidity crisis and the banks with exposure to Deutsche Bank. This is clearly the European Banking Crisis we have been warning about. Most European (and Swiss) banks are having to overpay 30-40bps over libor. Even A+ rated banks […]
Poland: Zero Emissions Is A Trillion-Dollar Fantasy
Poland: Zero Emissions Is A Trillion-Dollar Fantasy Reducing emissions in Poland to zero will cost the country between $760 and $980 billion (700-900 billion euro), said Energy Minister Krzysztof Tchorzewski, as quoted by Reuters. “Of course, these costs would obviously be spread over years. But I treat it as a fantasy when someone says that Poland is […]
Japan’s Monetary System is a Warning to Modern Society
Japan’s Monetary System is a Warning to Modern Society QUESTION: Mr. Armstrong; My friend who retired from the Bank of Japan told me you had recreated the monetary system of Japan and that was how you could predict the yen would go below par back in 1995 and again in 2011. Could you please publish the […]
Japanese Bond Crash, Margin Call Sends Shockwaves Around The Globe
Japanese Bond Crash, Margin Call Sends Shockwaves Around The Globe For a dramatic preview of what will happen in a flash to all those record low interest rates without the backstop of central banks and ravenous pension fund, look no further than what happened in Japan overnight, where bond futures suffered the biggest one-day crash […]
China’s Renewable Boom Hits The Wall
China’s Renewable Boom Hits The Wall When earlier this year China announced subsidies for 22.79 GW of new solar power capacity, those following the country’s renewable energy story must have started to worry. The capacity subsidized is half the amount approved in 2017, at 53 GW. And chances are that solar and wind additions will continue to […]
