Archive - 2015 - Blog entry

Between 2000 and today, the global bond market has nearly TRIPLED in size. Today, it’s north of $100 trillion in size. And it’s backstopping over $555 trillion in derivatives trades.

Let's do the time warp again...

Fraud grows in good times because rescission is rarely sought (or granted) when asset values rise. Fraud is not a problem, till it is.

What's that? It sounds just like Starbucks, Peet's, or any other coffee place on the planet? Yeah, well, I guess you have a point there. But there's a big difference: you have to pay to sit down.

This is awkward...

“I don’t think there is much space left to fill.”

Does it get any funnier than this? Well, arguably, we’ve already seen an even funnier episode from these financial “Wile E. Coyotes”. But let’s begin with a look at the most recent “botched operation” by the psychopaths of the One Bank.

The inverted relationship between gold and the dollar broke down in November 2011. The dollar soared from July to the present, spiking 21% against the other major currencies. Most of the negative commentary regarding gold in recent months misses the rather bigger point that the gold price has held up remarkably well given the extent of dollar’s move.

Debt, Distraction, Currency Wars, Itchy Fingers

The average American student graduating with a bachelors degree leaves with approximately $28,400 of debt to be repaid over the course of their career. In fact, over 70% of students graduating will be in this position, making it the norm.

History never repeats itself, but it always rhymes...

The Fed and other Central Banks are trying to maintain the illusion that they have everything in control by talking about interest rates, but the reality is that the US Dollar carry trade is ABOVE $9 trillion in size. That is almost as large as ALL of the money printing that occurred between 2009 and 2013.

Many analysts regard this as further evidence that the Fed is caught in a bind. What is yet to be appreciated by most analysts is that it is unlikely that the massively over-leveraged and debt-saturated financial system can weather increases in interest rates.

Monetary policy is putting the hurt on labor.

You have your fear, which might become reality...