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Realizing the Full Implications of the Forthcoming Catastrophe
Realizing the Full Implications of the Forthcoming Catastrophe Delivering Tomorrow’s Curses Roman poet Virgil penned these words in his epic, The Aeneid, roughly a generation before the birth of Jesus of Nazareth. They can be loosely translated to, “the descent to hell is easy.” Those who’ve traversed this passage can attest to the veracity of this […]
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle
The Fed’s Dangerous Game: A Fourth Round of Stimulus in a Single Growth Cycle The longer the signals in capital markets go haywire under the influence of “monetary stimulus,” the bigger is the cumulative economic cost. That is one big reason why this fourth Fed stimulus — in the present already-longest (but lowest-growth) of super-long […]
For The First Time In 6 Years, No Central Bank Is Hiking
For The First Time In 6 Years, No Central Bank Is Hiking The global central bank experiment with renormalization is officially over. After roughly half the world’s central banks hiked rates at least once in 2018, the major central banks have returned to easing mode, and as the chart below shows, for the first time […]
World’s Central Banks End Pact That Limited Selling Of Gold
World’s Central Banks End Pact That Limited Selling Of Gold In a surprising announcement on Friday morning, the European Central Bank said the 21 signatories of the 4th Central Bank Gold Agreement (CBGA) “no longer see the need for formal agreement” as the market has developed and matured, and as a result the signatories “decided […]
U.S. Economic Warfare and Likely Foreign Defenses
U.S. Economic Warfare and Likely Foreign Defenses Photograph Source: Trending Topics 2019 – CC BY 2.0 Today’s world is at war on many fronts. The rules of international law and order put in place toward the end of World War II are being broken by U.S. foreign policy escalating its confrontation with countries that refrain from […]
“Yellow Light” – Is The Credit Market Finally Reversing
“Yellow Light” – Is The Credit Market Finally Reversing Keep digging Yesterday, the European Central Bank held a stand-pat meeting, keeping the benchmark deposit rate at negative 40 basis points. However, ECB president Mario Draghi indicated that rate cuts and a resumption of asset purchases are on tap for September. In the accompanying presser, the outgoing […]
Subprime 2.0: Mortgages Now Available For Borrowers Without Credit Scores
Subprime 2.0: Mortgages Now Available For Borrowers Without Credit Scores Waterstone Mortgage Corporation, a national lender, based in Wisconsin with licenses in 48 states, announced Tuesday that it’s now lending to people with aboustely no credit history, reported HousingWire. Waterstone calls it the “Non-Traditional Credit Program” will use other forms of financial history, such as cell […]
The $6 Trillion Pension Bailout Is Coming
The $6 Trillion Pension Bailout Is Coming Fiscal responsibility is dead. This past week, Trump announced he had reached an agreement with Congress to pass a continuing resolution which will suspend the debt ceiling until July 2021. The good news is that it will ONLY increase spending by just $320 billion. What a bargain, right? […]
Chinese Bank With $100 Billion In Assets Is About To Collapse
Chinese Bank With $100 Billion In Assets Is About To Collapse While the western world (and much of the eastern) has been preoccupied with predicting the consequences of Trump’s accelerating global trade/tech war and whether the Fed will launch QE before or after it sends rates back to zero, Beijing has quietly had its hands […]
$1.6 Trillion Fund Spots A New, Ticking Time Bomb In The Market
$1.6 Trillion Fund Spots A New, Ticking Time Bomb In The Market First it was the shocking junk bond fiasco at Third Avenue which led to a premature end for the asset manager, then the three largest UK property funds suddenly froze over $12 billion in assets in the aftermath of the Brexit vote; two years later the Swiss […]
Russia Urges “Independence” From “Imposed World Order” Of US Financial System
Russia Urges “Independence” From “Imposed World Order” Of US Financial System Following Russia signalling last week, its willingness to join the controversial payments channel Instex – designed to circumvent both SWIFT as well as US sanctions banning trade with Iran – new statements from Russian Deputy Foreign Minister Sergei Ryabkov called on the international community to free itself from […]
Are Central Banks Losing Their Big Bet?
Are Central Banks Losing Their Big Bet? Following the 2008 global financial crisis, central banks bet that greater activism on the part of other policymakers would be their salvation, helping them to normalize their operations. But that activism never came, and central bankers are now facing a lose-lose proposition. ZURICH – In recent years, central […]
Entering Period of Perpetual Money Printing – John Williams
Entering Period of Perpetual Money Printing – John Williams Economist John Williams says be careful what you wish for when it comes to Federal Reserve interest rate cuts. Williams explains, “Unless you can get a good healthy consumer, you are not going to get a good healthy economy. It’s that simple. I think the Fed […]
“She Has A Flair For Darkness” – Meet The Woman Tasked With Predicting How The Fed Will Blow Up The World
“She Has A Flair For Darkness” – Meet The Woman Tasked With Predicting How The Fed Will Blow Up The World Central bankers have two key roles: the first, and more trivial one, is to set the price of money by adjusting short-term interest rates, something they have been doing since the advent of central […]
Federal Reserve Headlines – Fact or Fiction?
Federal Reserve Headlines – Fact or Fiction? “When it becomes serious, you have to lie.” – Jean-Claude Juncker, former President of the Eurogroup of Eurozone finance ministers On July 16, 2019, Chicago Federal Reserve President Charles Evans made a series of comments that were blasted across the financial news wires. In the headlines taken from […]
