Home » Posts tagged 'interest rates' (Page 8)
Tag Archives: interest rates
Peter Schiff: Central Banks Have Created the Mother of All Bubbles
Peter Schiff: Central Banks Have Created the Mother of All Bubbles The Federal Reserve and other central banks around the world have pumped trillions of dollars into the global economy and depressed interest rates to artificially low levels to blow up the mother of all bubbles. In his podcast, Peter Schiff explained how the recent […]
When Inflation is really Deflation
When Inflation is really Deflation QUESTION: Why is the Fed doing so much Reverse Repo? Do you think it will hit $2 trillion? JE ANSWER: I understand that people seem to be talking up the reverse repo activity as doom and gloom. The Federal Reserve has been raising interest rates and boosted the return to fight inflation. […]
While Fed Is in Denial, Hawkish Bank of Russia Sees Inflation as “Not Transitory,” Warns of Possible Shock-and-Awe Rate Hike
While Fed Is in Denial, Hawkish Bank of Russia Sees Inflation as “Not Transitory,” Warns of Possible Shock-and-Awe Rate Hike US Inflation is almost as hot as in Russia, but the Fed is still blowing it off. Consumer price inflation in Russia is red-hot, having jumped 6.0% in May compared to a year ago, 2 […]
When Expedient “Saves” Become Permanent, Ruin Is Assured
When Expedient “Saves” Become Permanent, Ruin Is Assured The Fed’s “choice” is as illusory as the “wealth” the Fed has created with its perfection of moral hazard. The belief that the Federal Reserve possesses god-like powers and wisdom would be comical if it wasn’t so deeply tragic, for the Fed doesn’t even have a plan, […]
Suffering a sea-change
Suffering a sea-change There is an established theoretical relationship between bonds and equities which provides a framework for the future performance of financial assets. It would be a mistake to ignore it, ahead of the forthcoming rise in global interest rates.Price inflation is roaring, and so far, central banks are in denial. But it is […]
Spiking Inflation, Rate Hikes, and Debt Defaults in Latin America
Spiking Inflation, Rate Hikes, and Debt Defaults in Latin America Mexico and Brazil, having seen the economic destruction that high inflation can wreak, don’t want to see it again. Latin America will soon be hit by a wave of business bankruptcies and defaults, according to Jesús Urdangaray López, the CEO of CESCE, Spain’s biggest provider of export […]
Weekly Commentary: Generational Turning Point
Weekly Commentary: Generational Turning Point There is an overarching issue I haven’t been able to get off my mind: Are we at the beginning of something new or in the waning days of the previous multi-decade cycle? May 5 – Wall Street Journal (James Mackintosh): “We could be at a generational turning point for finance. […]
Three reasons why inflation is rising. Two of them aren’t going away
Three reasons why inflation is rising. Two of them aren’t going away A remarkable thing happened yesterday that tells you everything you need to know about inflation. In the morning, US Treasury Secretary Janet Yellen stated bluntly that “interest rates will have to rise somewhat to make sure that our economy doesn’t overheat. . .” […]
Fed and Treasury Steer Their Unsinkable Ship toward Iceberg
Fed and Treasury Steer Their Unsinkable Ship toward Iceberg This past week we got to observe Fed Chair Jerome Powell and the US stock market andthe US bond market do everything I said they would do in their complicated shuffle of ships-and-icebergs: “I’m sure many helium-headed stock investors believe the lilly-livered Fed will turn tail […]
QE During the “Everything Mania”: Fed’s Assets at $7.7 Trillion, up $3.5 Trillion in 13 months
QE During the “Everything Mania”: Fed’s Assets at $7.7 Trillion, up $3.5 Trillion in 13 months But long-term Treasury yields have surged, to the great consternation of our Wall Street Crybabies. The Fed has shut down or put on ice nearly the entire alphabet soup of bailout programs designed to prop up the markets during […]
Ponzis Go Boom!!!
Ponzis Go Boom!!! For the past few years, I have been critical of the Ponzi Sector. To me, these are businesses that sell a dollar for 80 cents and hope to make it up in volume. Just because Amazon (AMZN – USA) ran at a loss early on, doesn’t mean that all businesses will inflect […]
Yield Curve Control: Bubbles And Stagnation
Yield Curve Control: Bubbles And Stagnation Central banks do not manage risk, they disguise it. You know you live in a bubble when a small bounce in sovereign bond yields generates an immediate panic reaction from central banks trying to prevent those yields from rising further. It is particularly more evident when the alleged soar […]
Bank of Canada Announces Balance Sheet Reduction, Suddenly Worried about “Moral Hazard”
Bank of Canada Announces Balance Sheet Reduction, Suddenly Worried about “Moral Hazard” “Once crisis tools have served their purpose, central banks should scale them back.” The Bank of Canada will unwind its crisis liquidity facilities, will further reduce its purchases of Government of Canada bonds, which it already started tapering in October, will let short-term […]
Gold vs. the stock market
Gold vs. the stock market More than 3,000 years ago in the early 12th century BC, Greco-Roman legend tells us of a mythical pair of monsters located in the Strait of Messina in southern Italy. The monsters were named Scylla and Charybdis. And both Homer’s Odyssey and Virgil’s Aeneid describe the terror of sailors who […]
