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Tag Archives: interest rates
Draghi Admits He Cannot Stop Buying Gov’t Debt
Draghi Admits He Cannot Stop Buying Gov’t Debt Draghi has realized that he has singlehandedly destroyed the European bond market. Besides the fact that it is illegal to short government bonds, he has come face to face with the stark reality that IF the ECB stops buying government bonds, there will be NO BIDat these price […]
Deutsche Bank: This Does Not Make Sense
Deutsche Bank: This Does Not Make Sense Amid the growing debate whether rates will keep rising once they hit 3.00%, or they will fall as asset managers find the new level attractive enough to dip their toes and buy duration, one analyst laughs at everyone calling for lower rates from here onward. In a note […]
Turkey – Default or War?
Turkey – Default or War? QUESTION: Mr. Armstrong, My father was ______ the banker who commissioned you to do the Turkish lira hedging project in 1983. He passed away as you know. I found this material in his files on Turkey that you apparently published back in 1985. Some articles are saying that Turkey is […]
“GDP Growth Driving Rates Higher!” – Is That True?
“GDP Growth Driving Rates Higher!” – Is That True? “Peter Cook is the author of the‘Is That True?’ series of articles, which help explain the many statements and theories circulating in the mainstream financial media often presented as “truths.” The motives and psychology of market participants, which drives the difference between truth and partial-truth, are […]
Haunted by Ghosts of the Old Eastern Bloc
Haunted by Ghosts of the Old Eastern Bloc Ridiculous Minutia Jerome Powell, the new Chairman of the Federal Reserve, just completed his third week on the job. He’s hardly had enough time to learn how to operate the office coffee maker, let alone the all-in-one printer. He still doesn’t know what roach coach menu items […]
The End of (Artificial) Stability
The End of (Artificial) Stability The central banks’/states’ power to maintain a permanent bull market in stocks and bonds is eroding. There is nothing natural about the stability of the past 9 years. The bullish trends in risk assets are artificial constructs of central bank/state policies. As these policies are reduced or lose their effectiveness, the […]
Money Manager: ‘The Chaos Coming To The Markets Is Here’
Money Manager: ‘The Chaos Coming To The Markets Is Here’ Money manager Michael Pento says that profound chaos surrounding the economy is coming. The insolvency is becoming clear, and soon, we will no longer be able to sweep the problem under the rug. Sitting down with USA Watchdog’s Greg Hunter, Pento discussed the chaos people […]
“Strong Dollar,” “Weak Dollar,” What About a Gold-Backed Dollar?
“Strong Dollar,” “Weak Dollar,” What About a Gold-Backed Dollar? The recent hullabaloo among President Trump’s top monetary officials about the Administration’s “dollar policy” is just the start of what will likely be the first of many contradictory pronoucements and reversals which will take place in the coming months/years as the world’s reserve currency continues to be […]
Calm Before The Inflationary Storm
Calm Before The Inflationary Storm The economy has been showing great gains, and that positive trend is fueling fears of a surge in inflation. The Consumer Price Index, the key predictor of inflationary trends, rose .05 percent in January, which greatly exceeded the anticipated rise of 0.2 percent. The market reacted as expected as stocks […]
Fed President Sounds Panic Over Level Of US Debt
Fed President Sounds Panic Over Level Of US Debt Nearly a decade after the US unleashed its biggest debt-issuance binge in history, made possible only thanks to the Fed’s monetization of nearly $4 trillion in deficits (and debt issuance), the Fed is starting to get nervous about the (un)sustainability of the US debt. The Federal […]
Raising Interest Rates Is Like Starting a Fission Chain Reaction
Raising Interest Rates Is Like Starting a Fission Chain Reaction Central bankers seem to think that adjusting interest rates is a nice little tool that they can easily handle. The problem is that higher interest rates affect the economy in many ways simultaneously. The lessons that seem to have been learned from past rate hikes may […]
Rising Interest Rates: New Era with Tough Outcomes
Rising Interest Rates: New Era with Tough Outcomes What will the bond market do? The conniptions in the Treasury market are causing pain in existing portfolios but offer opportunities down the road. What’s the impact of these rising interest rates on the housing bubbles in the US and Canada? Where is the pain threshold? […]
Central Banks Will Let The Next Crash Happen
Central Banks Will Let The Next Crash Happen If you have been following the public commentary from central banks around the world the past few months, you know that there has been a considerable change in tone compared to the last several years. For example, officials at the European Central Bank are hinting at a […]
Four Rate Hikes in 2018 as US National Debt Will Spike
Four Rate Hikes in 2018 as US National Debt Will Spike Chorus gets louder. But no one will be ready for those mortgage rates. It didn’t take long for rate-hike expectations to be jostled further by last week’s “monster” two-year budget bill that Congress passed with its usual gyrations, including a government mini-shutdown, and that […]
