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The Terrifying Truth About Negative Interest Rates
The Terrifying Truth About Negative Interest Rates Pushing interest rates below zero is both an act of desperation and something that in theory should have a huge, immediate impact of the behavior of borrowers and savers. The fact that negative rates have become the new normal in big parts of the world but haven’t caused […]
Why it (sort of) makes sense for the US to impose tariffs
Why it (sort of) makes sense for the US to impose tariffs Nearly everyone wonders, “Why is Donald Trump crazy enough to impose tariffs on imports from other countries? How could this possibly make sense?” As long as the world economy is growing rapidly, it makes sense for countries to cooperate with each other. With the […]
Debt is the Hidden Issue in The European Elections
Debt is the Hidden Issue in The European Elections The citizens of the European Union are called to vote this week for the European Parliament. It is not a real parliament, and it lacks prospects for becoming one, since all important decisions are taken by the unelected heads of the European Commission and the European […]
Could China dump its US Treasuries to fight the trade war? A contrarian view is emerging in Beijing
Could China dump its US Treasuries to fight the trade war? A contrarian view is emerging in Beijing As trade war escalates, market talk is emerging that Beijing will use monetary weapons to retaliate as ‘last resort’ China’s US Treasury holdings in March dropped by US$10.4 billion while foreign exchange reserves rose to highest level […]
The Boycott Begins: Chinese Company Orders Employees To “Stop Using American Products, Eating At KFC”
The Boycott Begins: Chinese Company Orders Employees To “Stop Using American Products, Eating At KFC” In a harbinger of what’s to come as the US-China trade war gets worse by the day, a Chinese company has told all of its employees to boycott American products and halt international travels to the U.S., reported The Epoch Times. […]
99 Lead Balloons… Are About To Come Crashing Down
99 Lead Balloons… Are About To Come Crashing Down ‘Lead balloon.’ That graphic description of public failure apparently dates from the US in 1924, and ironically was itself such a poorly-received idiom that it didn’t appear in the American press again until 1947. A few decades later, and the phrase was so well known that a […]
Blain’s Morning Porridge – May 22 2019 – Tesla and Yoorp worries
Blain’s Morning Porridge – May 22 2019 – Tesla and Yoorp worries “When the bough breaks…” Have you ever watched a house of cards collapse? Sometimes a corner or a side comes down, and it can be sort of fixed… Sometimes the whole thing just gets blown away. My Spidey Senses are all a-tingle this […]
Lira Tumbles, Turkish Stocks Enter Bear Market After US Issues Ultimatum; Russia Furious
Lira Tumbles, Turkish Stocks Enter Bear Market After US Issues Ultimatum; Russia Furious The Turkish Lira tumbled as much as 1% against the dollar, leading a decline across emerging markets… … while Turkish stock market losses accelerated as the Borsa Istanbul 100 Index falls 1.5%, declining for a 6th day and 13 of the past […]
If Deutsche Bank Breaks $6.40 World in Trouble – Charles Nenner
If Deutsche Bank Breaks $6.40 World in Trouble – Charles Nenner Renowned geopolitical and financial cycle expert Charles Nenner says if there was ever a global canary in the coal mine warning for the financial system, it is Germany’s Deutsche Bank (DB). Late last year, Nenner predicted if DB stock went below $8 a share, […]
UK’s Second-Biggest Steel Company Collapses Into Bankruptcy As Iron Prices Climb
UK’s Second-Biggest Steel Company Collapses Into Bankruptcy As Iron Prices Climb Talks to secure a government bailout have collapsed, and British Steel, the UK’s second-largest steel producer, has officially started insolvency proceedings, putting some 25,000 jobs – 5,000 workers at its Scunthorpe plant and another 20,000 along the supply chain – at risk, the FT reports. The […]
Why economic growth is not compatible with environmental sustainability
Why economic growth is not compatible with environmental sustainability Academic FEDERICO DEMARIA will be addressing staff at the European Commission today in a keynote speech about the crucial issues of economic growth and environmental degradation. He asks, is the well-being of the individual, societies and nations possible beyond economic growth? ‘Growth for the sake of […]
Blain’s Morning Porridge – May 21st 2019
Blain’s Morning Porridge – May 21st 2019 “He knew everything about literature, except how to enjoy it…” Waves of negative news headlines battering markets. Might have to wear a hat.. Huawei – Trade War Threat Level Rises The Huawei embargo raises the trade war threat from undeclared to imminent shooting match. While it’s not quite […]
China’s Nuclear Option to Sell US Treasurys, Report 19 May
China’s Nuclear Option to Sell US Treasurys, Report 19 May There is a drumbeat pounding on a monetary issue, which is now rising into a crescendo. The issue is: China might sell its holdings of Treasury bonds—well over $1 trillion—and crash the Treasury bond market. Since the interest rate is inverse to the bond price, […]
How Central-Bank Interest-Rate Policy Is Destabilizing Banks
How Central-Bank Interest-Rate Policy Is Destabilizing Banks Broadly speaking, banks operate under the concept of maturity transformation. Banks take short-term – less than one year – financing vehicles, such as customer deposits, and use that to finance long-term – more than one year – returns. These returns range from the most commonly understood loans, such […]
