• Sprout Money
    02/28/2015 - 15:53
    American investors might be extremely disappointed with the recent performance of the gold price as the yellow metal is once again trading below $1200/oz. This causes a lot of people to frown, but...

Central Banks

Tyler Durden's picture

David Stockman: The Global Economy Has Entered The Crack-Up Phase





Few people understand the global economy and its (mis)management better than David Stockman -- former director of the OMB under President Reagan - and he is now loudly warning that events have entered the crack-up phase, which he predicts will be defined by four key developments. As the crack-up phase gains momentum, he predicts an increasing number of "financial breaks" that will add to the unpredictability and instability of the environment for investors. Even 'dancing close to the door' sounds excessively risky at this point.

 
lemetropole's picture

GATA And Martin Armstrong Have Gone At It For Nearly 17 Years!





 

 

 

A couple of days ago a Café member sent me some of the latest commentary by Martin Armstrong of Armstrong Economics, formally of Princeton Economics International. As you will read, he continues his rant against "the gold promoters," a rant that seemed more than vaguely familiar.

What an understatement!

 
Tyler Durden's picture

The Only Question About The So-Called "Recovery"





We were almost eager to swallow the blue pill and admit that the "recovery" is an actual recovery this time (non-GAAP that is, one where all the economic data is first excluded)... and then we happened to glance at this chart, courtesy of Citigroup's Matt King.

 
Tyler Durden's picture

We Live In An Era Of Dangerous Imbalances





History is very clear what happens with dangerous imbalances like this. They correct painfully. Through class warfare. Through currency crises. Through wealth destruction.

 
Tyler Durden's picture

Derivatives: No Longer Used For Hedging But Exclusively For "Alpha Generation"





"...there seems to have been a shift from using derivatives as a hedging tool, to using them more for alpha generation [as] most products are now used more for adding risk and directional views."

 
Tyler Durden's picture

Dismantling Krugman's "Debt Doesn't Matter" Mantra





With the global economy sinking, and worries about it beginning to resound beyond just inconvenient bears, Paul Krugman has been leading the critique against what he sees is a disastrous and ignorant deformation against debt. Krugman is trying to argue that because government debt did not hinder private wealth creation we should use government debt to create private wealth. The cart is not even before the horse using this “logic”, as the cart and horse aren’t even on the same road. Paper wealth isn’t wealth, and government debt isn’t “free money.” There are consequences to both which their proponents never include in the “prospectus.”

 
Tyler Durden's picture

"Gaussian Demolition": Observations On Key Global Events





Bell Curves have become fatter and flatter. They may even be inverted. The term “bell curve” comes from the shape of the curve that depicts all occurrences distributed around the most-probable event. Data points in the ‘tails’ are now more frequent. Hyper-active central banks might be ensuring both a melt-up bubble and a market crash: larger ‘right-tail’ and ‘left-tail’ outcomes.

 
Tyler Durden's picture

Fed Links To Paper Extremely Critical Of Monetary Intervention... Then Pulls Link





The Federal Reserve Bank of Cleveland earlier this week tweeted out a notice of a working paper titled: U.S. Intervention during the Bretton Woods Era:1962-1973... a detailed report on the massive interventions in currency markets that the Treasury and the Federal Reserve conducted and is exceptionally critical of the market manipulations that took place during that period. It is probably no surprise then that the paper is no longer featured at the Cleveland Fed, and the tweet was quickly deleted.

 
Phoenix Capital Research's picture

QE and ZIRP Are Deflationary...





ZIRP forces retirees and the baby boomers to become more frugal based on lower interest income... this is DEFLATIONARY and has crippled consumer spending.

 
GoldCore's picture

Central Bank Gold Purchases Increased In 2014 Says WGC As Sweden Enters Currency Wars





Central bank gold buying surged another 17% last year as countries outside of the Western hemisphere continue to stockpile the only currency with no counterparty risk.

 
Tyler Durden's picture

Global Deflation Exports To US Send Import Prices Tumbling Most Since Lehman





Import prices dropped 8.0% YoY (modestly beating expectations of an 8.9% plunge) and 2.8% MoM. The last time import prices started to fall at this pace was a month after Lehman Brothers BK'd. Of course the crash of oil prices is largely responsible as imported fuel costs slumped 16.9% YoY - the most since Dec 2008 (petroleum -17.7%). However, even away from that the price of imported capital goods collapsed the most since March 2009 with the biggest rise in Japanese (foreign central banks) exported deflation since April 2013 (when QE really accelerated).

 
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