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How Is Negative Interest Possible?
HOW IS NEGATIVE INTEREST POSSIBLE? Germany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is now negative. Many would say “congratulations”, in the belief that this proves their credit risk is … well … umm … negative(?) And anyways, it will […]
The Great Unknown
The Great Unknown QUESTION: Martin, if Europe and Japan have destroyed their bond markets, would it be a good idea for them to get the government out of the bond market and have short term rates be floating in the free market? The free market would probably help since they don’t know how to move rates […]
What happens when the Yellow Vests meet European Debt Crisis II?
What happens when the Yellow Vests meet European Debt Crisis II? There is a lot of talk about which economic bubble will burst first and burst the worst (sounds like a gangsta rap song, no?) The stock market, real estate, luxury goods, corporate debt and government bond bubbles, and other lesser bubbles, all jockey for […]
QE Created Dangerous Financial Dependence, Italy Hooked, Withdrawal Next, ECB Warns
QE Created Dangerous Financial Dependence, Italy Hooked, Withdrawal Next, ECB Warns “Who will purchase the €275 billion of government debt Italy is to issue in 2019?” The ECB, through its army of official mouthpieces, has begun warning of the potentially calamitous consequences for Italian bonds when its QE program comes to an end, which is […]
How Are Chinese Stocks Responding to Tariffs With the US and a Slowdown in Asian Growth?
HOW ARE CHINESE STOCKS RESPONDING TO TARIFFS WITH THE US AND A SLOWDOWN IN ASIAN GROWTH? Despite US tariffs, China’s September trade balance with the US reached a record high A number of China’s Asian neighbours have seen a deceleration in growth The Shanghai Composite has fallen more than 50% since 2015, the PE ratio […]
How Politicians Are Creating the Worst Economic Crash in History
How Politicians Are Creating the Worst Economic Crash in History Politicians have totally and completely misunderstood the trends within the global economy and as a result, they are actually creating one of the worst economic debacles in history. I have explained several times that the bulk of investment capital is tied up in two primary […]
We Just Witnessed The Biggest U.S. Bond Crash In Nearly 2 Years – What Does This Mean For The Stock Market?
We Just Witnessed The Biggest U.S. Bond Crash In Nearly 2 Years – What Does This Mean For The Stock Market? U.S. bonds have not fallen like this since Donald Trump’s stunning election victory in November 2016. Could this be a sign that big trouble is on the horizon for the stock market? It seems […]
The Only Existential Threat To Russia Is Neoliberal Economics
The Only Existential Threat To Russia Is Neoliberal Economics This week I was interviewed on Russian TV about the possible new anti-Russian sanctions that Washington is considering that would prohibit anyone in the entirety of the world from holding Russian government bonds. Think about this for a moment. Washington thinks that Washington has the right […]
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 […]
Do Financial Markets Still Exist?
Do Financial Markets Still Exist? For many decades the Federal Reserve has rigged the bond market by its purchases. And for about a century, central banks have set interest rates (mainly to stabilize their currency’s exchange rate) with collateral effects on securities prices. It appears that in May 2010, August 2015, January/February 2016, and currently […]
Chart Of The Day: This Is What Happens When There Is Even A Hint That The ECB Will Stop Buying Bonds
Chart Of The Day: This Is What Happens When There Is Even A Hint That The ECB Will Stop Buying Bonds Portugal’s bond yields continue to rise as the rating agency DBRS prepares to deliver its rating verdict. It’s the last rating agency that still has Portugal’s debt at an investment-grade level. If the downgrade […]
The Peak in Government? A Low in Interest Rates?
The Peak in Government? A Low in Interest Rates? We have warned that capital is in a flight to quality, therefore creating the bubble in government paper. We also warned that the bond market on the long-term peaked in April/May and that we should expect a further rally in the short-end. This significant move has unfolded right […]
How Fascist Capitalism Functions: The Case of Greece
How Fascist Capitalism Functions: The Case of Greece There is democratic capitalism, and there is fascist capitalism. What we have today is fascist capitalism; and the following will explain how it works, using as an example the case of Greece. Mark Whitehouse at Bloomberg headlined on 27 June 2015, “If Greece Defaults, Europe’s Taxpayers Lose,” and presented […]
10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW
10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW If you do not believe that we are heading directly toward another major financial crisis, you need to read this article. So many of the exact same patterns that preceded the great financial collapse of 2008 are happening again right […]
