Central Banks

Japan - It's Finally Happening

"I still shake my head at the stupidity. One of the most overindebted countries in the history of modern finance trading with a 0% thirty year bond... But this week the market decided to test the BoJ’s resolve... The market is finally saying the demand for credit is enough to force the Bank of Japan to buy bonds to keep rates down. And that was the signal I was waiting for. I am shorting JGBs with both fists."

Meanwhile, Over In Zimbabwe...

They’ve threatened to throw anyone in jail who’s caught trading bond notes at anything other than the official 1:1 exchange rate. Naturally these threats have only spurred the creation of a black market where Zimbabwe’s bond notes are bought and sold at their real values. Right now the bond notes are trading at 5% to 10% below the US dollar. But this is just the beginning.

GoldCore's picture

The Trump administration continues to sabre-rattle at global powers and threatens to disrupt the status-quo of international relations. Comments in just 24-hours by Donald Trump and his team have included attacking an Ivy League university, a nuclear power and two of the United States’ key trading partners.

Irreversible Damage - The U.S. Economy Cannot Be Repaired

The mainstream media has been carefully crafting the propaganda meme that the Trump administration is inheriting a global economy in “ascension,” when in fact, the opposite is true. Trump enters office at a time of longstanding decline and will likely witness severe and accelerated decline over the course of the next year. The signs are already present, and this fits exactly with the basis for my prediction of the Trump election win - conservative movements are indeed being set up as scapegoats for a global economic crisis that international financiers actually created.

3 Things: Fed Fubar, Feb Flop, & A Fifty-Percent Drop

"The problem our nation faces is a serious one. We have now paired a massive speculative bubble with an errant pin that has every prospect of creating disruption. A steep financial retreat was already baked in the cake prior to the election - there are few policies that have the capacity to make the consequences substantially better, but many that could make the outcomes substantially worse."

The Central Banks Pull Back: Now It's Up To Fiscal Policy To "Save The World"

The reason central bankers are pulling back from their previous "we can do no wrong, we're saving the world" expansion is those policies have failed to bolster the real economy. Even conventional economists who never met a central bank expansion they didn't love are grudgingly conceding that quantitative easing and all the other monetary expansions did little but make the rich richer and everyone else poorer.

Dollar Slide Accelerates After Fed Fails To Boost Confidence, Pressures US Futures

European shares and S&P futures fell amid mixed earnings from corporate heavyweights, while Asian stocks were fractionally higher. The dollar slump continued against all its major peers after the Federal Reserve gave dollar bulls little to be optimistic about.  The U.S. currency dropped toward the lowest close since November after the Fed reiterated its intention on Wednesday to lift rates only gradually.

A Time For Caution

"We have argued the current monetary regime is in its evanescence, and that the Fed is trying to raise rates to attract global wealth to dollars and dollar-denominated assets as global leverage, demand and output growth declines. If we are right, then we should not expect other economies to sit by idly... which keep us cautious on equities, bullish on Treasuries and gold, and negative on credit:"