{"id":43862,"date":"2019-02-18T07:03:58","date_gmt":"2019-02-18T12:03:58","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43862"},"modified":"2019-02-18T07:05:04","modified_gmt":"2019-02-18T12:05:04","slug":"doug-noland-central-banks-are-hostages-of-market-bubbles","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43862","title":{"rendered":"Doug Noland: Central Banks Are \u201cHostages Of Market Bubbles\u201d"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.dollarcollapse.com\/noland-central-banks-hostages-market-bubbles\/\">Doug Noland: Central Banks Are \u201cHostages Of Market Bubbles\u201d<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Doug Noland\u2019s weekly&nbsp;<a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/02\/weekly-commentary-no-holds-barred.html\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Bubble Bulletin<\/a>&nbsp;is always required reading.&nbsp;<a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/02\/weekly-commentary-no-holds-barred.html\" target=\"_blank\" rel=\"noreferrer noopener\">The latest<\/a>&nbsp;\u2013 befitting the amazing things that have happened lately \u2013 is more necessary than usual. But at 10,000 words it\u2019s also a lot longer than usual. So while everyone should definitely read the whole thing, here are some excerpts to get you started:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>I wonder if the Fed is comfortable seeing the markets dash skyward \u2013 the small caps up 16.4% y-t-d, the Banks 15.9%, the Transports 15.2%, Biotechs 18.5% and Semiconductors 17.0%. Or, perhaps, they\u2019re quickly coming to recognize that they are now fully held hostage by market Bubbles.<\/p><p>Similarly, I ponder how Beijing feels about January\u2019s booming Credit data \u2013 Aggregate Financing up $685 billion in the month of January. Do officials appreciate that they are completely held captive by history\u2019s greatest Credit Bubble?\u00a0<\/p><p>Bubbles have become a fundamental geopolitical device \u2013 a stratagem. Things have regressed to a veritable global Financial Arms Race. As China\/U.S. trade negotiations seemingly head down the homestretch, each side must believe that rallying domestic markets beget negotiating power. Meanwhile, emboldened global markets behave as if they have attained power surpassing mighty militaries and even nuclear arsenals.<\/p><p>China\u2019s banks made the most new loans on record in January \u2013 totaling 3.23 trillion yuan ($477bn) \u2013 as policymakers try to jumpstart sluggish investment and prevent a sharper slowdown in the world\u2019s second-largest economy.<\/p><p>January\u2019s record China new bank loans were 11.4% higher than the previous record from January 2018 \u2013 and 15% above estimates. Total Bank Loans expanded 13.4% over the past year; 28% in two years; 45% in three years; 91% in five years; and an incredible 323% over the past decade.<\/p><p>\u201cThe San Francisco Fed put out a white paper about the benefits of negative interest rates. I hope that\u2019s not where we\u2019re going, but we can only cut rates about 225\/250 bps to be at zero\u201d \u2014 Kyle Bass, Hayman Capital Management.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Doug Noland: Central Banks Are \u201cHostages Of Market Bubbles\u201d Doug Noland\u2019s weekly&nbsp;Credit Bubble Bulletin&nbsp;is always required reading.&nbsp;The latest&nbsp;\u2013 befitting the amazing things that have happened lately \u2013 is more necessary than usual. But at 10,000 words it\u2019s also a lot longer than usual. So while everyone should definitely read the whole thing, here are some [&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":[124,16861,303,7544,534,3650],"class_list":["post-43862","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-doug-noland","tag-fed","tag-john-rubino","tag-monetary-policy","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43862","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=43862"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43862\/revisions"}],"predecessor-version":[{"id":43864,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43862\/revisions\/43864"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}