Central Banks

Russell Napier Interviewed: Fiscal Stimulus Comes With Dangerous Baggage – Financial Repression

"Let's say the fiscal policy comes. It succeeds. We get growth. We get inflation. Central bank balance sheets cannot expand in the growth and inflation. So who's going to buy the government debt? The answer is you are. Particularly if you work for a regulated financial institution. Regulated financial institutions are the people who will be expected to do that, and that is financial repression.

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Trump and Gold

Donald Trump's election as next US president has given the gold price a short-term 'uncertainty' trading boost. However, Trump's keen interest in the gold standard is a trend worth watching over the next 4 years.

GMO's Grantham Warns Of "Dismal Consequences" For Investors In A World Where Bubbles Don't Burst

"The market is unlikely to go “bang” in the way those bubbles did. It is far more likely that the mean reversion will be slow and incomplete. The consequences are dismal for investors: we are likely to limp into the setting sun with very low returns. For bubble historians, though, it is heartbreaking for there will be no histrionics, no chance of being a real hero. Not this time."

We're All Hedge Funds Now - Central Banks Become World's Biggest Stock Speculators

There seems to be a growing assumption that the elites have finally figured out how to turn a capitalist system into a perpetual motion machine by having central banks buy up all financial assets. This is classic “peak of the cycle” thinking, and the more widespread it becomes the closer the system is to breaking down.

For Deutsche Bank, This Is The "Brexit Panic" Signal In Today's Election

Deutsche Bank has advised its sales and trading team to immediately report to their trading desks should Trump wins Pennsylvania and Michigan. So if Trump be is reported to be leading and/or winning the two key battleground states at 8pm, expect all volatility hell to break loose.

Chinese Capital Outflows Send FX Reserves To Lowest Since 2011

Overnight, China reported that the PBOC’s FX reserves fell another US$46bn to US$3.121 trillion in October as the central banks struggled to offset the impact of accelerating capital outflows, triple the official September decline of US$19bn (recall that according to Goldman, the true FX outflow in recent months has been far greater), and the biggest drop since January. The October decline brought China's total reserves the lowest amount since 2011.