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Tag Archives: debt
Waiting For The Black Swan
Waiting For The Black Swan War with Iran would be the beginning of the end Two more tankers were attacked near the Strait of Hormuz on Thursday morning (6/13/19) in the Gulf of Oman, and if hostilities advance we could be facing a ‘black swan’ event. One that changes everything, and divides the world into […]
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 […]
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 […]
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 […]
Central banks are buying gold at the fastest pace in six years
Central banks are buying gold at the fastest pace in six years Earlier this month the World Gold Council published its quarterly report– and it shows that central banks and foreign governments from around the world are buying up gold at their fastest pace in six years. This is pretty big news, and it says […]
Peter Schiff: The Uber IPO Fiasco and the Writing On the Wall
Peter Schiff: The Uber IPO Fiasco and the Writing On the Wall Uber launched its IPO on Friday. It was less than ideal. Meanwhile, the Federal Reserve is talking about how it wants to tweak its quantitative easing program when the next recession rolls around. Peter Schiff talked about how these things relate — and […]
Stocks Crater – 3.5 Trillion Dollars In Global Market Cap Wiped Out – China Considers “Dumping U.S. Treasuries”
Stocks Crater – 3.5 Trillion Dollars In Global Market Cap Wiped Out – China Considers “Dumping U.S. Treasuries” Wall Street responded to our escalating trade war with China by throwing a bit of a temper tantrum. On Monday the Dow Jones Industrial Average was down 617 points, and that was the worst day for the […]
Chapter 8: Negotiable Debt, A Bit of History
CHAPTER 8: NEGOTIABLE DEBT, A BIT OF HISTORY This chapter is a quick summary and clarification of what happens when debt becomes negotiable. The focus is on money, but other aspects are referred to, highlighting the general undesirability of making debt negotiable. There will be some repetition of material previously covered, for the sake of […]
“China’s JPMorgan” Seeks Money From Its Employees To Avoid Collapse
“China’s JPMorgan” Seeks Money From Its Employees To Avoid Collapse Ever since Beijing allowed private Chinese companies (even certain state-owned enterprises) to officially fail for the first time in 2015, and file for bankruptcy to restructure their unsustainable debt loads, it’s been a one-way street of corporate bankruptcies, one which we profiled last June in […]
Central Banks Don’t Matter
Central Banks Don’t Matter “There is no money in monetary policy.” Could it be true? Is there no money in monetary policy? Yesterday we argued the Federal Reserve cannot even define money… much less measure it to any reasonable satisfaction. Today we venture upon a heresy deeper still — that central bank “monetary” policy has […]
The Company Store
The Company Store Leaves almost nothing to live on In the song Sixteen Tons by Merle Travis (and made famous by Tennessee Ernie Ford), the idea of the ‘company store’ referred to a system of debt bondage that effectively trapped workers within an unfair system designed to harvest all of their labor at very low cost. You […]
Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay For Interest On Debt
Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay For Interest On Debt While it is common knowledge that the US budget deficit is soaring even though the US economy is allegedly growing at a brisk, mid-2% pace, resulting in recurring bond trader nightmares about funding the growing twin US deficits […]
All That’s Missing Is a Black Swan
All That’s Missing Is a Black Swan “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the […]
“Everyone Is Thinking It’s The Shanghai Accord All Over Again”
“Everyone Is Thinking It’s The Shanghai Accord All Over Again” Back on January 9, when the S&P500 was just inches away from its Christmas Day bear market lows, we asked a simple question: is the Shanghai Accord 2.0 coming? Now, with the S&P back at all time highs, China unleashing a historic torrent of new credit after launching […]
