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What Happens When More QE Fails to Reverse the Recession?
What Happens When More QE Fails to Reverse the Recession? The smart money is liquidating assets, paying off debt and moving capital into collateral that isn’t impaired by debt or speculative valuations. The Federal Reserve’s sudden return to “accommodative” dovishness in response to the stock market’s swoon telegraphs its intent to fire up QE once […]
IMF Discreetly Preps Massive Aid Package For “Day After” Maduro’s Fall
IMF Discreetly Preps Massive Aid Package For “Day After” Maduro’s Fall The International Monetary Fund is reportedly making plans for the “day after” embattled President Nicolas Maduro’s fall, according to Bloomberg. Though there’s been little momentum in military defections following US-backed opposition leader Juan Guaido’s offer of amnesty to any army officer that switches loyalties, Washington sanctions have […]
Russians Told To “Prepare For Worst Outcome” As US Prepares New Sanctions
Russians Told To “Prepare For Worst Outcome” As US Prepares New Sanctions A bipartisan team of US senators is preparing to hit Russia with additional sanctions over its 2016 US election interference and military operations in Syria and Ukraine. Sens. Bob Menendez (D-N.J.) and Lindsey Graham (R-S.C.) are spearheading the measure, called the Defending American Security from Kremlin Aggression Act, which includes a wide range of financial […]
Get Used to the “Powell Put”
Get Used to the “Powell Put” In the land of the Federal Reserve and its market-manipulating mechanisms, there’s now an unofficial market term called the “Powell Put” or the “Powell Pivot.” It is in direct reference to Fed chairman Jerome Powell. Before he became chairman, Wall Street referred to prior heads’ policies with terms like […]
Currencies threatened by a credit crisis
Currencies threatened by a credit crisis In this article I draw attention to the similarities between the current economic situation and that of 1929, and the threat to today’s unbacked currencies. There is the coincidence of trade protectionism with the top of the credit cycle, and there are the inflationary events that preceded it. The […]
The US Corporate Debt Bomb, Europe’s Recession, and Systemic Risk in China
The US Corporate Debt Bomb, Europe’s Recession, and Systemic Risk in China Yesterday’s note caught a lot of attention. In it, we argued that investing in stocks today based on the Fed getting dovish is like buying stocks after the Bear Stearns deal: you’re buying based on a development that reveals the financial system is in […]
How Digital Banking Makes You More Vulnerable
A man takes part in a hacking contest during the Def Con hacker convention in Las Vegas, Nevada, U.S. on July 29, 2017. (Reuters/Steve Marcus) How Digital Banking Makes You More Vulnerable Banking – and bank robbery – have entered the digital age and all is not well. Safes and vaults used to be how […]
Here Comes The Shanghai Accord 2.0: China Unleashes Gargantuan Credit Injection To Start 2019
Here Comes The Shanghai Accord 2.0: China Unleashes Gargantuan Credit Injection To Start 2019 One month ago, we pointed out a curious shift in the official language out of China’s central bank: in late December, when traders were generally away on vacation, the PBOC indicated a critical shift in the official monetary policy description at the December […]
Chapter 3: How Money Works Today: A Summary.
CHAPTER 3: HOW MONEY WORKS TODAY: A SUMMARY. This chapter summarises how money works today. For convenience’s sake, there will be some repetition of material covered elsewhere. Founded on debt rented out at interest, the money system is difficult for most human minds (mine, for instance) to grasp. It is counter-intuitive, so much so that […]
Central Banks Buy Gold Bullion Hand Over Fist, Most Purchased Since 1967
Central Banks Buy Gold Bullion Hand Over Fist, Most Purchased Since 1967 Cryptocurrencies have been crushed, the stock market looks poised for a slowdown and the world stands on the edge of a cliff, as geopolitical tensions flare across the globe, waiting for a spark to ignite the flames. The smart money knows it, and […]
Peter Schiff: ‘This Is The Beginning Of The End’ For The Economy
Peter Schiff: ‘This Is The Beginning Of The End’ For The Economy Peter Schiff, the President and CEO of Euro Pacific Capital, and one of the few who predicted the 2008 Great Recession before it happened has said that what we are experiencing now is “the beginning of the end.” Schiff made his comments during his […]
Get Ready To Pay More For Toilet Paper, Cat Litter And Garbage Bags
Get Ready To Pay More For Toilet Paper, Cat Litter And Garbage Bags After finding they could largely get away with raising prices last year, makers of household staples are planning another round of inflationary price hikes in order to offset higher commodity costs and boost profits, according to the Wall Street Journal. Unsurprisingly, the price […]
Sustainable Government Debt–An Old Idea Refreshed
SUSTAINABLE GOVERNMENT DEBT – AN OLD IDEA REFRESHED New research from the Peterson Institute suggests bond yields may fall once more Demographic forces and unfunded state liabilities point to an inevitable reckoning The next financial crisis may be assuaged with a mix of fiscal expansion plus QQE Pension fund return expectations for bonds and […]
What Caused the Recession of 2019-2021?
What Caused the Recession of 2019-2021? The banquet of consequences is now being served, but the good seats have all been taken.As I discussed in We’re Overdue for a Sell-Everything/No-Fed-Rescue Recession, recessions have a proximate cause and a structural cause. The proximate cause is often a spike in energy costs (1973, 1990) or a financial crisis triggered […]
Italy’s Gold enters the Political Fray. But who really owns it?
Italy’s Gold enters the Political Fray. But who really owns it? Italy’s unpredictable political situation continues to throw up surprises with a controversial claim in national newspaper La Stampa this week that the country’s coalition government wants to sell part of Italy’s gold reserves to cover spending plans and to prevent the need to increase VAT in […]
