Federal Reserve

It's Not The Brexit Stupid!

Brexit is just a symptom of the disease eating away at the fabric of our global economy. Lehman’s collapse was not the cause of the 2008 worldwide financial crisis. It was just the excuse for something that was going to happen no matter what. Bad debt, bad bankers, bad regulators, bad politicians, media cheer leading, and a willfully ignorant populace were a toxic combination – and it’s worse today.

Welcome To Planet Debt

Both of this year’s presumptive candidates are “low interest rate” people, all right. Their adult lives were marked by the credit cycle and their careers shaped by ballooning debt. And now, almost the entire world economy depends on low rates. We live on Planet Debt.

Just One Word Describes This Fed

A simple word count of the Fed's minutes reveals that the prevailng mood at the Federal Reserve right now can be described with just one word.

"We've Never Had A Shock To The System Like This" - Global Selloff Accelerates On Brexit, Italy, "Unknown" Fears

The flight to safety following last week's quarter-end window dressing is accelerating, with constant news and flashing red headlines of record low yields across DM government bonds once the norm, and as of moments ago Denmark's 10Y bonds joined the exclusive club of sub-zero yields; gold has soared to fresh multi-year highs above $1,370, the risk-off currency, the Yen, soaring and sending the USDJPY just above 100, while sterling crashed overnight once again below 1.27, levels not seen since 1985.

From Monica To Loretta - The Clintons Corrupt Absolutely

Wherever they go, whatever they do, ethics are trashed and suspicions of criminal conduct follow them like night follows day. It’s who they are and it’s self-delusional to believe another stint in the White House would make the Clintons better people. Power exacerbates rather than cures an absence of integrity. Yet there’s another dimension to their chronic crookedness. It is that, in addition to being personally corrupt, the Clintons are corrupters.

"China Is Headed For A 1929-Style Depression"

“The government is allowing speculation by providing cheap financing,” Andy Xie exclaimed, China “is riding a tiger and is terrified of a crash. So it keeps pumping cash into the economy. It is difficult to see how China can avoid a crisis.”

ETF Securities Reports Biggest One-Day Gold Inflow Since Financial Crisis

It never ceases to amaze how vastly different the investment styles of gold paper vs physical traders are: while we have documented previously how the latter tend to buy progressively more the lower the price, "investors" in paper-derivatives such as ETFs and ETPs are quite the opposite, where only momentum matters. Once a reflexive buying spree is unleashed, paper buying begets even more paper buying. Nowhere is this more evident than in today's daily report of ETF Securities, where "inflows into gold ETPs of US$263mn on Friday 1st July were at their highest since inception."

Brexit Proved It's All A Central Bank Funded Mirage

Why can’t the markets proceed any higher than when QE ended in Oct/Nov of 2014? You know, if this is truly: a fundamentally based bull market that is. Or, is it that – its fundamentally full of bull? I believe it’s a big-ole-pile of the latter, and little to none of the former. Put a different way: Explain why does it take more central banker intervention, or the promise thereof, to stop these falls? If it were all “fundamentally” based on market principles, again, why is there a need or call for even more monetary interventionism? (i.e., negative interest rates, “helicopter” styled moves, etc., etc.)