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For The First Time Ever, Greece Issues Negative Yielding Debt
For The First Time Ever, Greece Issues Negative Yielding Debt As armies of fixed income strategists battle over whether US Treasuries are facing higher or lower yields, Greece has no such qualms and in a historic shift today, the former bond market pariah and Eurozone’s most indebted nation, joined the exclusive club of negative-yielding European […]
Can the EU Survive the Next Financial Crisis?
Can the EU Survive the Next Financial Crisis? Despite the ECB’s subsidy of the Eurozone’s banking system, it remains in a sleepwalking state similar to the non-financial, non-crony-capitalist zombified economy. Gone are the heady days of investment banking. There is now a legacy of derivatives and regulators’ fines. Technology has made the over-extended branch network, […]
Over $10 Trillion In Debt Now Has A Negative Yield
Over $10 Trillion In Debt Now Has A Negative Yield NIRP is back. On Friday, when Germany reported disastrous mfg and service PMI prints, the 10Y German Bund finally threw in the towel, with the yield sliding back under zero for the first time in three years. When that happened, and when the 3M-10Y yield […]
The Super Wealthy Are Already Preparing For NIRP and Worse
The Super Wealthy Are Already Preparing For NIRP and Worse The Global Elite are preparing for Negative Interest Rate Policy (NIRP) and Wealth Grabs. How do I know? They’re moving their money into physical cash. Physical cash represents one of the rare loopholes in our current financial system. When money is in actual physical cash […]
NIRP, Cash Bans and Wealth Taxes Are Coming to the US
NIRP, Cash Bans and Wealth Taxes Are Coming to the US If you’re looking for a template for what’s coming to the US during the next crisis, Europe is the place to start. Europe has already imposed cash grabs via Negative Interest Rate Policy (NIRP). That’s where banks CHARGE you for the right to keep […]
Swedish Central Bank Makes U-Turn on Cash as NIRP is Ending
Swedish Central Bank Makes U-Turn on Cash as NIRP is Ending Cash is less of a threat to central bank policies when interest rates rise above zero. Sweden’s Riksbank has become the first central bank in the 21st century to take concrete measures to ensure that cash does not disappear as a means of payment from […]
NIRP Did It: I’m in Awe of How Central-Bank Policies Blind Investors to Risks
NIRP Did It: I’m in Awe of How Central-Bank Policies Blind Investors to Risks “Reverse-Yankee” Junk Bond Issuance Hits Record. It’s paradise for US companies looking for cheap money. They range from sparkly investment-grade companies, such as Apple with its pristine balance sheet, to “junk” rated companies, such as Netflix with its cash-burn machine. They […]
Hilarity in NIRP Zone: Italian 2-Year Yield Still Near 0%, as New Government Proposes Haircut for Creditors and Alternate Currency, Markets on “Knife Edge”
Hilarity in NIRP Zone: Italian 2-Year Yield Still Near 0%, as New Government Proposes Haircut for Creditors and Alternate Currency, Markets on “Knife Edge” The ECB’s Negative Interest Rate Policy has been the funniest monetary joke ever. The distortions in the European bond markets are actually quite hilarious, when you think about them, and it’s […]
Not Even Goldman Has Any Clue How The BOJ Will “Control” The Yield Curve
Not Even Goldman Has Any Clue How The BOJ Will “Control” The Yield Curve The biggest news overnight, and certainly far bigger than this afternoon’s non-event from Janet Yellen, was the significant change in monetary policy announced by the BOJ which (belatedly) unveiled its re-revised “QQE”… this time “with Yield Curve Control” (or “QQEWYCC“), a […]
Turning Stones Into Bread – The Japanese Miracle
Turning Stones Into Bread – The Japanese Miracle Stuffing the Futon Our friend Ramsey Su just asked what Haruhiko Kuroda and Shinzo Abe are going to do now in light of the strong yen (aside from perhaps doing the honorable thing). Isn’t it time to just “wipe out some debt with the stroke of a pen”? The […]
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years There’s a lot of talk going around these days about “helicopter money.” For those unfamiliar, it’s billed as a kind of last Keynesian resort when ZIRP, NIRP, and QE have all failed to boost aggregate demand and juice inflation. For instance, HSBC […]
Deutsche Bank Discovers Kuroda’s NIRP Paradox
Deutsche Bank Discovers Kuroda’s NIRP Paradox Last October, BofA looked at Europe’s €2.6 trillion in negative-yielding debt and discovered something “stunning”: Savings rates were going up not down. Don’t believe us, just have a look at these three charts: But how could that be? By all accounts – or, should we say, by all conventional Keynesian/ textbook accounts – […]
“The Fed Suspended The Laws Of The Market In Order To Save It” – What Happens Next
“The Fed Suspended The Laws Of The Market In Order To Save It” – What Happens Next That the Fed has been boxed in by unleashing destructive monetary policies to “fix” decades of prior policy mistakes, is something we have been warning about since our first day. And, with every passing day that the Fed […]
“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’
“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’ As extensively discussed yesterday in the aftermath of the BOJ’s stunning decision to cut rates to negative for the first time in history (a decision which it appears was taken due to Davos peer pressure, a desire to prop up stock markets and to […]
