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Weekly Commentary: Summer of 2020
Weekly Commentary: Summer of 2020 QE fundamentally changed finance. What commenced at the Federal Reserve with a post-mortgage finance Bubble, $1 TN Treasury buying operation morphed into open-ended purchases of Treasuries, MBS, corporate bonds and even corporate ETFs holding high-yield “junk” bonds. Markets assume it’s only a matter of time before the Federal Reserve adds […]
An Unlikely Sector Leads the Way in Surge of Corporate Leveraged Loan Defaults
An Unlikely Sector Leads the Way in Surge of Corporate Leveraged Loan Defaults From Birch Gold Group The economic effects of the COVID-19 pandemic and recent Fed monetary policy continue to reveal themselves. The latest “reveal” that’s taking center stage is risky corporate leveraged loans, with defaults soaring to their highest levels since 2010 by issuer count, and since 2015 by rate. […]
The Economy Continues To Unravel Despite All Stimulus Measures
The Economy Continues To Unravel Despite All Stimulus Measures Since the pandemic lockdowns were first implemented in the US I have been more concerned with the government and central bank response than the virus itself. As I have noted in past articles, the pandemic restrictions and subsequent economic and social crisis events they help to create […]
Market Update: The Fed’s Big Lie
Market Update: The Fed’s Big Lie Ignore Powell’s happy talk. The Fed is desperate and merely playing for time. Insanity is doing the same thing over and over again, but expecting different results. Federal Reserve Chairman Jerome Powell announced on Thursday that the Fed will now shift its focus from hitting inflation targets and instead […]
The U.S. Dollar Collapse Is Greatly Exaggerated
The U.S. Dollar Collapse Is Greatly Exaggerated The US Dollar Index has lost 10% from its March highs and many press comments have started to speculate about the likely collapse of the US Dollar as world reserve currency due to this weakness. These wild speculations need to be debunked. The US Dollar year-to-date (August 2020) has strengthened […]
In The Long Run We Are All Alive
In The Long Run We Are All Alive In 1976, economist Herbert Stein, father of Ben Stein, the economics professor in Ferris Bueller’s Day Off, observed that U.S. government debt was on an unsustainable trajectory. He, thus, established Stein’s Law: “If something cannot go on forever, it will stop.” Stein may have been right in […]
What Are You Going To Do As Our Money Dies?
What Are You Going To Do As Our Money Dies? Central banks are killing our currency to protect the already-rich In our recent article It’s Time To Position For The Endgame, Chris Martenson explained how the US Federal Reserve and its sister central banks around the world have been engaged in the largest and most egregious […]
Is High Inflation Now A Bigger Danger Than A Deflationary Crash?
Is High Inflation Now A Bigger Danger Than A Deflationary Crash? What’s the more likely event at this point: a deflationary crash or runaway inflation? For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly […]
The Zombie Companies Are Coming
The Zombie Companies Are Coming Easy money is a curse for capitalism. Through the first half of August – which is normally a quiet period for the bond market in the US – a total of $56 billion in junk bonds and leveraged loans were issued by junk-rated companies, according to S&P Global. That was […]
Weekly Commentary: Moral Hazard Quagmire
Weekly Commentary: Moral Hazard Quagmire The Nasdaq100 jumped another 3.5% this week, increasing 2020 gains to 32.3%. Amazon gained 4.3% during the week, boosting y-t-d gains to 77.8% – and market capitalization to $1.626 TN. Apple surged 8.2% this week, increasing 2020 gains to 69.4%. Apple’s market capitalization ended the week at a world-beating $2.127 […]
They’ve Done It Again
They’ve Done It Again The stars are back in their courses. The angels are back in the heavens. And the Perfections are back within sight… For merely 148 trading days after bottoming… the S&P returned to record heights today. The index closed the day at 3,389 — eclipsing its February 19 height of 3,386. Thus […]
Gold and Free Banking Versus Central Banks
GOLD AND FREE BANKING VERSUS CENTRAL BANKING In spite of the officially declared “independence” of the Federal Reserve from the immediate political control of either Congress or the White House, America’s central bank is, nonetheless, a branch of the U.S. government that is responsible for setting monetary policy, overseeing a variety of banking regulations, and […]
An unexpected systemic crisis is for sure
An unexpected systemic crisis is for sure Downturns in bank credit expansion always lead to systemic problems. We are on the edge of such a downturn, which thanks to everyone’s focus on the coronavirus, is unexpected. We can now identify 23 March as the date when markets stopped worrying about deflation and realised that monetary […]
False Bizarre Economy Renders GDP Useless (Part 1)
False Bizarre Economy Renders GDP Useless (Part 1) GDP Growth Is Akin To “Magic Illusion 101” We may be getting to the place where more people are beginning to realize the illusion created from printing and pouring trillions of dollar haphazardly into the economy can’t last. Today, consumer confidence hinges on what Washington decides to […]
The Wonders of Free Money in Two Pictures
The Wonders of Free Money in Two Pictures Lesson of the Day If you give away enough free money, spending recovers. Census Report on Advance Retail Sales The Census report on Advance Retail Sales provides half of our “Lesson of the Day“. Adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, July sales […]
