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BofA: Central Banks Are Creating Bubbles Instead Of Helping The Economy; The Result Will Be A Disaster
BofA: Central Banks Are Creating Bubbles Instead Of Helping The Economy; The Result Will Be A Disaster In recent weeks we have seen a surprising spike in criticism of central banks by establishment figures, in some cases central bankers themselves, most notably Mark Carney who last Friday remarkably admitted that very low interest rates tend “to coincide […]
Here’s a dirty secret few people know about gold
Here’s a dirty secret few people know about gold In 1962 in a picturesque setting in Santa Barbara, California, two local entrepreneurs opened a low-cost, roadside inn where the nightly room rate was just $6. They called it Motel 6. And today the chain has grown to over 1,400 locations. If you want the most […]
Inflationary Financing and GDP
INFLATIONARY FINANCING AND GDP This article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP does not represent economic progress, nor does it include the expansion of activity in the non-financial private sector, because that marries up with larger trade deficits, which […]
Preparing For A Financial Apocalypse: Insiders Are Selling “$600 Million Of Stock Per Day In August”
Preparing For A Financial Apocalypse: Insiders Are Selling “$600 Million Of Stock Per Day In August” In the U.S., corporate insiders have been selling stocks at an average rate of 600 million dollars per day during the month of August. This kind of wild selling indicates that there is a tremendous amount of fear among […]
Lacalle: A Day Of Reckoning Looms For The Global Economy
Lacalle: A Day Of Reckoning Looms For The Global Economy European and Asian economic data is deteriorating, says economist and author Daniel Lacalle. “I’d call right now the day of reckoning,” Lacalle says, in this video excerpt of our soon-to-be released podcast In The Arena. “The entire message from mainstream consensus is ‘Yes there was a […]
The Great Switch: The Geo-Politics of Looming Recession
The Great Switch: The Geo-Politics of Looming Recession Is the prospect of looming global recession merely an economic matter, to be discussed within the framework of the Great Financial Crisis of 2008 – which is to say, whether or not, the Central Bankers have wasted their available tools to manage it? Or, is there a […]
Globalization Just Peaked
Globalization Just Peaked In Jackson Hole on Friday, Bank of England’s outgoing governor Mark Carney talked about a Synthetic Hegemonic Currency (SHC) that the world ‘must’ create, and I thought: that sounds as creepy as anything Halloween. Now, Carney is a central banker as well as a former Giant Squid partner, hence a certified cultist, […]
Keep it Simple
Keep it Simple Markets blow up on Friday on a series of tweets, markets jam higher on the pronouncement of dubious phone calls on Monday. The rapid back and forth has many heads spinning and makes for dramatic headlines as people are searching for explanations. To which I say: Keep it simple, especially in the age […]
“Things Will Never Be The Same Again”: Here Are 20 Questions As Central Banks Admit Defeat
“Things Will Never Be The Same Again”: Here Are 20 Questions As Central Banks Admit Defeat Unlike prior years, there was a distinct sense of dread and powerless foreboding in this year’s Jackson Hole meeting, starting with Jerome Powell’s “boring” speech in which he blamed Trump’s trade war for the Fed’s inability to stimulate the […]
The Anatomy of the Coming Recession
The Anatomy of the Coming Recession Unlike the 2008 global financial crisis, which was mostly a large negative aggregate demand shock, the next recession is likely to be caused by permanent negative supply shocks from the Sino-American trade and technology war. And trying to undo the damage through never-ending monetary and fiscal stimulus will not […]
The G-7 Blues
The G-7 Blues What’s at stake in all these international confabs like the G-7 are the tenuous supply lines that keep the global game going. The critical ones deliver oil around the world. China imports about 10 million barrels a day to keep its operations going. It produces less than 4 million barrels a day. […]
The Biggest Bubble in Modern Financial History
The Biggest Bubble in Modern Financial History QUESTION: You said before you were advising corporates to issue long-term bonds and lock in the low rates. Even the US Treasury seems to be following your advice and are looking at issuing 50 and 100-year bonds. Do you give governments the same advice? DK ANSWER: If asked, of course, […]
America’s Debt Burden Will Fuel The Next Crisis
America’s Debt Burden Will Fuel The Next Crisis Just recently, Rex Nutting penned an opinion piece for MarketWatch entitled “Consumer Debt Is Not A Ticking Time Bomb.” His primary point is that low per-capita debt ratios and debt-to-dpi ratios show the consumer is quite healthy and won’t be the primary subject of the next crisis. To wit: […]
Truth is the Ultimate Black Swan
Truth is the Ultimate Black Swan Truth is the ultimate black swan. All other black swans are a myth. Financial websites are littered with articles written by people trying to predict the next black swan event that will usher in the implosion of the global Bubble of Everything, even though, by definition, a black swan […]
