Einstein's defintion of insanity was "doing the same thing over and over again and expecting a different outcome." It appears, judging by the world's central bankers' utter failure to ignite anything but speculative bubbles in risk assets they are all insane and, while the phenomenon of negative rates is relatively new in Europe and Japan (in other words they can decalre it too soon to judge), it has been four years since Denmark went full NIRP-tard, and inflation has done nothing but collapse. Simply put, as Charles Hugh-Smith detailed previously, what NIRP communicates is: this sucker's going down, so sell everything and hoard your cash and precious metals.
Goldman Warns Central Banks May Unleash "Financial Turbulence, Rate Shock" As It Cuts Yield ForecastsSubmitted by Tyler Durden on 05/10/2016 15:10 -0400
"On the policy front, all three major central banks can create financial turbulence if not careful in managing investors expectations. The Fed is tightening with very few hikes priced - a historical anomaly - increasing the odds of a 'rate shock'. The ECB and the BoJ are distorting the price of duration (and in Europe, sovereign credit) through their asset purchase programs. Any unanticipated shift in their behaviour could have magnified effects on asset prices."
While precious metals investors are concerned about the short-term price movements in silver, the real focus should be on this interesting silver market trend.
China is the latest in a growing line of “command and control” economies that have risen to prominence, captured the imagination of people who find free markets too messy for comfort, and then blown up when it turns out that dictators have no idea how to allocate capital.
"...why businesses often fail, why so many of our children are angry and rebellious, the real cause of racial prejudice in the world..."
The Dark Side of Politics--identity politics--is powerful indeed, and an irresistible draw for politicos and interest groups bent on preserving or extending their own private power and wealth.
The London property bubble shows renewed signs that it is beginning to burst. Property sellers in the UK have reduced their asking prices and London property prices have fallen by 7.8 per cent on average and as much as 30% in some areas according to City AM today.
Things are getting ‘weird’ out there if you’re trying to be polite, and downright 'chaotic' if you're being blunt. Everywhere we look, we see signs that the systems that support us are breaking down.
It’s showdown time. The IMF has threatened it will pull out of the Greek bailout program unless Greece gets debt relief. German Chancellor Angela Merkel, Austria, Finland, and the other Eurozone creditors will not like today’s development one bit.
Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke.
The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”
Rising wages and employment costs (benefits, healthcare, etc.) are a direct input into the profitability equation. Therefore, as the economy slows and other cost-cutting measures, accounting gimmicks and share buybacks lose their ability to increase bottom line profitability, it is only a function of time before the focus returns to the cost of labor. With corporate profitability currently under pressure, overall economic activity weak and global conditions deteriorating, just how long can companies sustain employment and wage growth? The answer is not long.
The brutal gang rape of a woman by three Afghan asylum seekers in central Vienna on April 22 has shocked the Austrian public and drawn attention to a spike in migrant-related rapes, sexual assaults and other crimes across the country. However, those who dare to link spiraling crime to Muslim mass migration are being silenced by the guardians of Austrian multiculturalism.
Despite the recent comparisons, Donald Trump and Ronald Reagan are very different when it comes to experience and views on fiscal policy.
"Freedom isn't free," you'll be told, but this isn't in reference to the enormous tax bill you're paying every year. No, this slogan is actually a veiled threat against you and a claim that however much you're paying now in terms of dollars or personal freedom, you should be ready and willing to give even more.