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Turkey’s 2nd Financial & Currency Crisis in 2 Years Blossoms. Heavily Invested European Banks Look for Exit. But Not the Most Exposed Bank
Turkey’s 2nd Financial & Currency Crisis in 2 Years Blossoms. Heavily Invested European Banks Look for Exit. But Not the Most Exposed Bank Big Gamble that was hot for years has gone sour after Turkish lira’s plunge and surge of defaults on bank debts denominated in foreign currency. As the Turkish lira logged fresh record lows […]
The Lesson Of Argentina: You Can’t Stabilize A Bankrupt Economy
The Lesson Of Argentina: You Can’t Stabilize A Bankrupt Economy So the U.S. puts Republicans (the party of small government) in charge, and gets… trillion dollar deficits as far as the eye can see AND a revival of socialism among Democrats. Scary as this may seem, the real (and even scarier) lesson is that it’s […]
China & Buying Gold – Why?
China & Buying Gold – Why? QUESTION: Mr. Armstrong; I believe you said at the WEC in 2017 that central banks will diversify and increase their gold reserves going into the currency crisis coming in 2021. China has continued to increase its gold reserves. You would please update on that development. Thank you PK ANSWER: Central banks […]
Is U.S Dollar on the verge of a major currency crisis?
Is U.S Dollar on the verge of a major currency crisis? According to the founder of the world’s largest hedge fund, Ray Dalio the US dollar could soon fall as much as 30% which could leave it looking like the Turkish Lira. The chairman of Bridgewater Associates, Ray Dalio has warned that the US economy […]
The Global Distortions of Doom Part 1: Hyper-Indebted Zombie Corporations
The Global Distortions of Doom Part 1: Hyper-Indebted Zombie Corporations The defaults and currency crises in the periphery will then move into the core. It’s funny how unintended consequences so rarely turn out to be good. The intended consequences of central banks’ unprecedented tsunami of stimulus (quantitative easing, super-low interest rates and easy credit / […]
Turkish Banks Liquidate Gold In Currency Crisis Panic
Turkish Banks Liquidate Gold In Currency Crisis Panic At the peak of the Turkish currency crisis in mid-August, in addition to general concerns about the state of the local economy, one sector got hit especially hard: Turkish banks, which saw their bonds plunge amid growing concerns that the currency slump would makes it impossible for […]
Turkey’s Crisis and the Dollar’s Future
Turkey’s Crisis and the Dollar’s Future Last week’s collapse of the Turkish lira has dominated the headlines, and it is widely reported that this and other emerging market currencies are in trouble because of the withdrawal of dollar liquidity. There are huge quantities of footloose dollars betting against these weak currencies, as well as commodities […]
Turkey Rules Out Capital Controls As Germany Says IMF Bailout “Would Be Helpful”
Turkey Rules Out Capital Controls As Germany Says IMF Bailout “Would Be Helpful” During this morning’s conference call organized by Citi, HSBC and other banks with “thousands” of investors, Turkey’s Treasury and Finance Minister Berat Albayrak – the Jared Kushner of Turkey – eased nerves when in an attempt to bolster confidence, said that capital controls […]
Boiling A Turkey
Boiling A Turkey There is an age old fable describing a frog being slowly boiled alive. The premise is that if a frog is put suddenly into boiling water, it will try and save itself. However, if the frog is put in tepid water which is then brought to a boil slowly, it will not perceive […]
16 Billion Reasons Why Turkey’s Currency Crisis Will Become A Debt Crisis
16 Billion Reasons Why Turkey’s Currency Crisis Will Become A Debt Crisis Earlier this week, when the Turkish lira imploded over the weekend, plunging by the most on record in two consecutive days, bonds of Turkish banks tumbled amid concerns that lira’s slump this year would makes it extremely difficult for lenders to repay dollar-denominated […]
Spotlight Turkey: Hyperinflation and Mass-Migration Crisis Inevitable
Spotlight Turkey: Hyperinflation and Mass-Migration Crisis Inevitable Turkey isn’t close to hyperinflation yet. But the path it’s on is a guaranteed way to get there. As Erdogan tightens his grip on finance and the central bank, Investors Fear Turkish Currency Crisis. The Turkish lira fell around 4% against the dollar late Monday after Mr. Erdogan […]
Argentina’s Peso Crisis, Capital Flows and Financial Fragility in Emerging Markets
Argentina’s Peso Crisis, Capital Flows and Financial Fragility in Emerging Markets On May 4, the Banco Central de la Republica Argentina, the country’s central bank, raised policy interest rates to a whopping 40 percent to stem the rapid depreciation of the national currency, the peso. The surprise rate increase was the third in a week […]
How High Is The Risk of a Currency Crisis?
How High Is The Risk of a Currency Crisis? “The reports of my death are greatly exaggerated”, quipped Mark Twain in response to a newspaper report that said he was on his deathbed. The same could be said about many fiat currencies. Whether we are looking at the US dollar, the euro, the Japanese yen […]
This Is What Gold Does In A Currency Crisis, Canadian Edition
This Is What Gold Does In A Currency Crisis, Canadian Edition Along with the currencies of most other commodity-exporting countries, the Canadian dollar has been in near-freefall lately. Gold, meanwhile, has been sucked down with the rest of the commodities complex, falling hard since 2013. But only in US dollars. For Canadians, with their weak domestic currency, […]
