Home » Posts tagged 'debt' (Page 22)
Tag Archives: debt
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 […]
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 […]
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 […]
‘Vaguely Troubling’: BIS Warns Of Financial Disaster Amid $17 Trillion In Negative-Yield Debt
‘Vaguely Troubling’: BIS Warns Of Financial Disaster Amid $17 Trillion In Negative-Yield Debt When the central bank for central banks publishes its quarterly review, the world should take note. Claudio Borio, Head of the Monetary and Economic Department at the BIS, published the BIS Quarterly Review, September 2019on Sunday, revealing how the increasing acceptance of negative interest […]
Use of “Hidden Debt Loophole” Spreads Among Australian Corporations
Use of “Hidden Debt Loophole” Spreads Among Australian Corporations Situation already so bad that hiding debt becomes a priority? Australian engineering group UGL, which is working on large infrastructure projects such as Brisbane’s Cross River Rail and Melbourne’s Metro Trains, recently sent a letter to suppliers and sub-contractors informing them that as of October 15, they will […]
Former Head Of Plunge Protection Team Says Fed Has To Buy More Debt
Former Head Of Plunge Protection Team Says Fed Has To Buy More Debt We have lift off. Last Wednesday, as stocks hit session lows amid fears that the Fed was so polarized on further easing and with the Fed’s dot plot suggesting no more cuts this year that odds of further rate cuts in 2019 […]
Our Energy and Debt Predicament in 2019
Our Energy and Debt Predicament in 2019 Many people are concerned that we have an oil problem. Or they are concerned about recession and the need to lower interest rates. As I see the situation, we have a problem of a networked economy that is not functioning well. A big part of this problem is energy-related. […]
The Silver Series: The Start of A New Gold-Silver Cycle (Part 1 of 3)
The Silver Series: The Start of A New Gold-Silver Cycle (Part 1 of 3) The world has experienced a decade of growth fueled by record-low interest rates, a burgeoning money supply, and historic debt levels – but the good times only last so long. As the global economy slows and eventually begins to retract, can […]
Can Government Prevent a Major Debt Crisis?
Can Government Prevent a Major Debt Crisis? QUESTION: Hi MartinI recently stumped upon a documentary on Netflix about you and your model.I then went on and watched some YouTube videos.To me it makes totally sense that taxation does not work, but how can we change it. Do we need to become politicians?We have a very high […]
The Shale Boom Has Turned To Bust: Producers Slashing Budgets, Staff, & Production Goals
The Shale Boom Has Turned To Bust: Producers Slashing Budgets, Staff, & Production Goals The collapse in the shale industry is continuing with no signs of stopping or even slowing down. No sooner did we highlight how shale is doomed no matter what the industry does and how recent price movements have triggered chaos across the industry, than we find […]
Modern Monetary Theory (MMT) Has An Argentina Problem
Modern Monetary Theory (MMT) Has An Argentina Problem Proponents of Modern Monetary Theory emphasize that a country that controls its own currency and borrows in its own currency, like the United States, cannot default on its debt. This is because the central bank can, if necessary, “print” the money needed to pay the government’s creditors… — Econofact The MMT […]
View from the Lake: Deflation & Debt
View from the Lake: Deflation & Debt Grand Lake Stream | The conversations over the Labor Day weekend at Leen’s Lodge ranged from negative interest rates to the efficacy of a bubble gum colored wacky worm vs live bait in late season bass fishing. We’ve mostly decided that a large mouth bass raised in Maine […]
“Money For Nothing And Growth For Free”: Dutch Considering €50BN Growth Fund Financed With Negative Rate Debt
“Money For Nothing And Growth For Free”: Dutch Considering €50BN Growth Fund Financed With Negative Rate Debt The Dutch coalition government is reportedly considering a EUR 50 bn investment fund to support economic growth, to be financed by borrowing at negative rates Many details are yet to be determined, but the Netherlands should have sufficient […]
Dead Meat in Jackson Hole
Dead Meat in Jackson Hole The Pointlessness of Negative Yields If there are any virtues of debt instruments with negative yields we have yet to realize them. Certainly, we understand that as bond yields fall, bond prices rise, and bond investors are rewarded with capital appreciation. But when capital is appreciating as a consequence of negative yields, […]
Bangladesh’s Central Bank Offers Amnesty To Delinquent Borrowers, Prompting Mass Default
Bangladesh’s Central Bank Offers Amnesty To Delinquent Borrowers, Prompting Mass Default Bangladesh’s Central Bank in May introduced an amnesty program that allowed delinquent borrowers to make a small upfront payment and then pay off the rest of their debt over 10 years at favorable interest rates, according to Bloomberg. However, the plan also triggered a rush by healthy […]
