{"id":17597,"date":"2016-02-10T12:19:45","date_gmt":"2016-02-10T17:19:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17597"},"modified":"2016-02-10T12:19:45","modified_gmt":"2016-02-10T17:19:45","slug":"rising-systemic-risk-for-all-markets","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17597","title":{"rendered":"Rising Systemic Risk for all Markets"},"content":{"rendered":"<div class=\"pageTitle blogTitle\">\n<h3><a href=\"https:\/\/www.armstrongeconomics.com\/world-news\/rising-systemic-risk-for-all-markets\/\" target=\"_blank\">Rising Systemic Risk for all Markets\u00a0<\/a><\/h3>\n<\/div>\n<div class=\"mainContent\">\n<div class=\"contentWrap\">\n<div class=\"theContent\">\n<p><a class=\"fancybox image\" href=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/IntRate-Manipulate.jpg\" target=\"_blank\" rel=\"attachment wp-att-44021\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-44021 aligncenter\" src=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/IntRate-Manipulate.jpg\" sizes=\"auto, (max-width: 477px) 100vw, 477px\" srcset=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/IntRate-Manipulate-300x196.jpg 300x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/02\/IntRate-Manipulate-180x117.jpg 180x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/02\/IntRate-Manipulate.jpg 477x\" alt=\"IntRate-Manipulate\" width=\"477\" height=\"311\" \/><\/a><a class=\"fancybox image\" href=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915.png\" target=\"_blank\" rel=\"attachment wp-att-43994\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-43994 alignright\" src=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915-300x169.png\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" srcset=\"https:\/\/armstrongmedia.s3.amazonaws.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915-300x169.png 300x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915-768x432.png 768x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915-600x337.png 600x, https:\/\/www.armstrongeconomics.com\/wp-content\/uploads\/2016\/02\/3d_text_perspective_10915.png 1000x\" alt=\"3d_text_perspective_10915\" width=\"300\" height=\"169\" \/><\/a><\/p>\n<p>We are on the precipice of what can \u00a0only be described as\u00a0rising systemic risk for all markets. The Fed is now hinting that banks should prepare for\u00a0NEGATIVE INTEREST RATES\u00a0and this insanity of following the crowd is undermining the entire world economy. The increasingly unstable footing that we find ourselves standing upon is\u00a0reflected in widening credit spreads demonstrating that\u00a0CONFIDENCE\u00a0is indeed collapsing. The EU Commission will no longer classify government bonds in bank balance sheets as \u201crisk\u201d. Banks would also have government bonds on par with \u201cequity\u201d yet government bonds have proven to be risky and are inferior to what would in some financial institutions result in an increased capital requirement.\u00a0Turning to Goldman Sachs, we see the so called world\u2019s greatest trader closed out its long-USD trade against a\u00a0basket of Euro and Japanese yen with a potential loss of around 5% which is being bantered about on the street showing they too got this all wrong. This early 2016 destabilization is stopping out short gold positions but not replacing them with any buying conviction while the Euro trade of long Italian 5 year against short German 5 year has also turned into a blood-bath as the Euro finally rallied begrudgingly to reach our first resistance target in the mid-113 area.<\/p>\n<p>Global economic growth has been anemic at best in the States but it is clearing turning down since 2015.75. This new world order of\u00a0NEGATIVE INTEREST RATES\u00a0is so insane and focused solely on trying to stimulate borrowing, it is undermining pensions and the elderly creating an economic storm of the century on the horizon, which is far worse that the Great Depression of the 1930s. Even the\u00a0<a href=\"http:\/\/www.theguardian.com\/business\/2016\/feb\/09\/japan-10-year-bond-yield-below-zero\" target=\"_blank\">Japanese 10 Year<\/a>\u00a0bond has gone\u00a0NEGATIVE\u00a0demonstrating the total collapse in\u00a0CONFIDENCE.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Rising Systemic Risk for all Markets\u00a0 We are on the precipice of what can \u00a0only be described as\u00a0rising systemic risk for all markets. The Fed is now hinting that banks should prepare for\u00a0NEGATIVE INTEREST RATES\u00a0and this insanity of following the crowd is undermining the entire world economy. The increasingly unstable footing that we find ourselves [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,63,6237,12311,280,376,12310,506,5479,534,690,8560,839,3492,1478],"class_list":["post-17597","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-banks","tag-confidence","tag-credit-spread","tag-euro","tag-goldman-sachs","tag-interest-rate-manipulation","tag-markets","tag-martin-armstrong","tag-monetary-policy","tag-risk","tag-systemic-risk","tag-us-dollar","tag-usd","tag-yen"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17597"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17597\/revisions"}],"predecessor-version":[{"id":17598,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17597\/revisions\/17598"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}