Central Banks

Why Canada's Oil Industry May Never Be The Same

It is increasingly certain that the future will not be like the past. Previous downturns have been equally devastating but the primary causes eventually reversed themselves; low commodity prices recovered and damaging government policies were rescinded. This recovery will be different for a variety of reasons which will combine to cap growth, opportunity and profits, even if oil and gas prices spike. The following major changes appear permanent...

Dow Dumps 400 Points From BoJ Shock As Gold Nears $1300

Gold first closed above $1300 on September 29th 2010, 67 months ago; and as investors' faith in Central Banks falters - with The Dow down over 400 points (and Nikkei 225 down 1700 points!) from the scene of Kuroda's Kamikaze decision, gold has soared up above $1299...

It's The Debt Stupid: Scotiabank Warns "At Some Point 'The Future' Becomes 'Today'"

Low interest rates attempt to buy time. The idea is to bring consumption forward until the economy heals on its own as capital projects are completed. But those projects never began this time. The end result is ever-higher debt that borrows more and more from the future. Unfortunately, it borrows from the future without making the future any brighter through solutions to root causes of economic ailments. At some point, the “future” becomes “today”.

Why Is JPM's "Quant Guru" Suddenly Worried About The "Endgame"

"Increased government spending, financed by central banks could indeed create inflation, but will further elevate the problem of debt viability. If investors lose confidence that the debt can ever be repaid, they will reduce their holdings, increasing the cost to governments or inviting more central bank buying. This can eventually result in the devaluation of all currencies against real assets such as gold, high inflation or even outright defaults (as was the case in Greece). If such a trend develops in one of the large economies, it could have far-reaching consequences."

Key Gold Index Doubles In 2016 (But Nobody Noticed)

Coming months will give us a far better clue as to how far the trend is entrenched. All we know right now is that the general investing public, and mainstream media, remain out of the picture.

Why Real Reform Is Now Impossible

The endless bleating of well-paid pundits in the corporate media about "reform" is just more circus designed to distract us from the much colder truth: the status quo is beyond reform. The choice is either collapse or well, collapse: letting the status quo strip-mine the bottom 95% will eventually lead to collapse and so will structural reforms that deprive the few of their power to create near-infinite sums of money and credit for their cronies.

2.607 Days Later, The "Most Hated Bull Market Ever" Is Now The Second Longest In History

It's official: as of today the bull market that has been mocked as fake, doomed and history’s most-hated just earned a new title: the second-longest ever. And it only took $14 trillion in central bank liquidity, a global, coordinated central bank "put", central banks purchases of Treasuries, MBS, ETFs and corporate bonds,  and nearly 700 rate cuts in the past 7 years to achieve it.

Global Stocks Plunge After Bank Of Japan "Shock"

Less than one week after the BOJ floated a trial balloon using Bloomberg, that it would reduce the rate it charged some banks which set off the biggest USDJPY rally since October 2014, we are back where we started following last night's "completely unexpected" (for everyone else: we wrote "What If The BOJ Disappoints Tonight: How To Trade It" hours before said "shock") shocking announcement out of the BOJ which did absolutely... nothing. "It’s a total shock,” Nader Naeimi, Sydney- based head of dynamic markets at AMP Capital Investors told Bloomberg. "From currencies to equities to everything -- you can see the reaction in the markets. I can’t believe this. It’s very disappointing."

Debt Is Growing Faster Than Cash Flow By The Most On Record

Net debt growth skyrocketing nearly 30% y/y, while EBITDA has been contracting for the past year. In fact, as SocGen shows below, the difference in the growth rate between these two most critical data series is now over 35% - the biggest deficit in over 20 years.