Yesterday we looked into how tightening monetary policy is just stimulus in disguise. Even if central banks raise interest rates, as they did in the US recently, they’re still spiking the economic punch bowl. We’re practically a bunch of drunks!The investment opportunities out of this were covered yesterday too. Today we look at what it means for the
The United States still forms around one-fourth of the global gross domestic product (GDP). It remains the largest consumer in the world. And any global recovery isn’t going to happen, without the American economy finding its way back to where it
Janet Yellen gave the nod to increase official US interest rates by a 0.25%, taking the cash rate to a range of 0.75–1.0%. The Fed is using the same tried and failed formula it’s relied on previously to stimulate the economy…and, this time, it’s
Today’s Capital & Conflict is issuing an all-out alert. The inflation spectre is back. In Spain, Belgium and Germany inflation rates have been soaring since mid-2016. In Spain, prices have gone from falling 1% per year to rising 3%. In Belgium,
Europe got the European Central Bank and its one-size-fits-all policy instead, which was supposed to dampen the booms and soften the busts. But if Belgium is stuck with Greece and Portugal’s interest rate it will do the exact opposite.
Any criticism of central bankers is deemed unsavory. They are above the political fray. Independent thinkers entrusted with guiding the economy. Be courteous. Be respectful. Sorry, those days are over. These people must be held accountable.
The Bundesbank's balance sheet total now amounts to more than EUR 1.39 trillion, an increase in 400 billion in 12 months. The bomb bursts when interest rates rise, countries or companies are insolvent, Europe breaks or countries leave the EU.
By Simone Wapler – The Strategy of Simone Wapler (France) – Dear Reader, No this is not a campaign slogan. The candidate of the National Front became the obsession of holders of French sovereign debt, 60% of whom are foreigners outside the euro
But this is a world whose major institutions – banks, pension funds, governments, large corporations, all the major players in the Deep State system – have flourished on extremely low interest rates. Now, like dinosaurs that have adapted to the tropics,
By Iván Carrino – El Diario del Lunes (Argentina) – On Friday of last week, I took my dog to the vet. In the midst of the conversation about vaccines, anti-parasitics etc., the state of the economy came up. The vet was outraged. “Are you an
By Bill Bonner – Bill Bonner’s Diary (USA) – Why should stocks be so expensive? Oh, yes… because the Trump Team is going to light a fire under Wall Street. But they must be wondering about that, too. Raising up stock prices – as we’ve
Simply put, Target 2 is an accounting system that keeps a tally of what bank owes what during transfers happening between European central banks. Does it matter if those electronic euros are stored in Germany or any other country? Not unless one of the
The government will have to keep pumping more capital into public banks in order to keep them going. And that means more taxpayer money going down the drain.
Andrew Haldane, chief Bank of England economist, compared the bank’s 2008 oversight to meteorologist Michael Fish claiming in 1987 that Britain wouldn’t be hit by a hurricane. It was.
For years, an influential group of economists, politicians and lobbyists has been making a strong ban on cash. Behind them are, however, their own interests and nothing else.
If the European Central Bank, the ECB, were to agree to this rescue program, this would be a smooth breach of confidence within the Eurozone. The risks in Italy are not manageable.
Simone Wapler – The Strategy of Simone Wapler (FRA) – It’s the end of the year. A civilized and conscientious biped is supposed to establish a balance and consult his crystal ball to reveal the trends of the following year. This will also be the
Between 2007 and 2012, the bank attempted to move the so-called "Isdafix" to specific levels with certain agreements among dealers. When the Deutsche Bank tried this, they were fined 50 million dollars.
Fortune’s 2000 portfolio lost 65% of its value over the subsequent decade. By December 2012, three of Fortune’s recommended companies had gone bankrupt and another had been taken over.
The thing is, it really shouldn’t be that hard. If only meddling bureaucrats, politicians, and bankers wouldn’t insist on interfering with the processes of the free market.
In Germany interest rates creep slowly and quietly upwards, without being noticed by anyone. All of this has tangible consequences for us savers and consumers and a fatal impact on the global economy.
It is time to update our models of how the modern economy works. And we can’t help but wonder why – given that this is its own research – the Bank of England constantly reaches the opposite conclusion.
The recent rate hike, and subsequent strengthening of the dollar, are only distractions. The bottom line is that the world is deeply in debt and will never return to normal, regardless of the Fed’s choices.
The feds have created a monster. Now, they are desperate to keep it happy… well-fed… and, most importantly, locked up. When this $35 trillion Frankenstein gets loose, there will be hell to pay.