• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Meltdown

Tyler Durden's picture

The Federal Reserve - The Deep State's Central Bank





The only possible reaction for the Fed is to reverse course. Besides, its main mission is to protect the Deep State’s finances – the flow of real wealth from you to it. And now we find the world’s elite – the Deep State financiers and economists – planning, explaining, and preparing the world for a U-turn.

 
Tyler Durden's picture

The Chart Of Doom: When Private Credit Stops Expanding...





Three out of the five major economies are already experiencing stagnant or negative private credit growth. Three down, two to go. Helicopter money--government issued "free money" to households--is no replacement for private credit expansion.

 
Tyler Durden's picture

Mass Layoffs To Return With A Vengeance





Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival. Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. The nightmare of 2008 soon became a golden era of 'recovery'. Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.

 
Tyler Durden's picture

More "P"onzi-2-"P"onzi Blowups "Just A Matter Of Time" In China, Experts Warn





With some 1,000 of the 3,600 P2P sites operating in China deemed "problematic", it's not a matter of if we see another Ezubo, but rather a matter of when

"The harm is obvious. It's going to damage financial reforms, cause social unrest and destabilize the regime to some extent."

 
Reggie Middleton's picture

When Mother Market Force Takes Over Central Banking! Watch Rates Rise Even Though the Fed Doesn't





Do you remember when Greenspan was befuddled when natural market rates wouldn't obey his commands in the previous decade? Well, I sure hope Yellen does. Even if she doesn't the high yield financed US energy probably won't be around long enough to find out.

 
Tyler Durden's picture

Why We Won't Have A "Lehman Moment" In The 2016 Crash





Issuing more credit will only make the 2016 crash worse. Trying to stop the current crash with more credit and lower interest rates is like sending the cavalry on suicide charges against entrenched machine guns, artillery and tanks. The coming financial slaughter will be as senseless, wasteful and ineffective as any suicide attack in the Great War.

 
Tyler Durden's picture

Wall Street Drops The 'C' Word: Proclaims Junk Bond Risks Are Contained





To an economist, the economy can bear no recession. In times of heavy central bank activity, an economy can never be in recession. Those appear to be the only dynamic factors that drive economic interpretation in the mainstream. And they become circular in the trap of just these kinds of circumstances – the economy looks like it might fall into recession, therefore a central bank acts, meaning the economy will avoid recession; thus there will never be recession. The risks are all still there, and economists are still determined to downplay if not miss them entirely.

 
Tyler Durden's picture

Did A Central Banker Just Margin Call All Other Central Banks' Credibility?





Did the BOJ’s out-of-the-blue reversal on its monetary stance which was refuted just weeks prior by Mr. Kuroda himself take place because after listening to the arguments, suggestions, as well as concerns, from the participants at Davos he concluded much like what the movie “Margin Call” depicted: It was all about to unravel? And if so: is this him deciding to be “first” and considered it his only choice?

 
Tyler Durden's picture

Forget About "Stocks For The Long Run"





On our scales, the balance between risk and reward in U.S. stocks falls heavily toward the risk. We see a reasonable likelihood of a ruinous loss against a remote possibility of a big gain. So go ahead and panic. You may be glad you did.

 
Tyler Durden's picture

9 Billion Barrels Of Crude At Risk In Massive Nigerian Oil Shakeup





Supermajors Shell and Italian Eni could be facing the loss of one of the biggest offshore oil exploration blocks in Nigeria, putting an estimated 9 billion barrels of crude oil at risk.

 
Tyler Durden's picture

"Nobody Really Knows Anything Right Now"





"We learned one thing yesterday: the U.S. Federal Reserve is in the same position as the rest of us when it comes to forecasting the future path of economic growth.  Nobody really “Knows” anything right now. Now, there’s enough doubt for everyone: markets, central banks, consumers, governments. Everyone. The best thing we can say about that: if markets accept that the Fed is no better informed than they are, maybe investors will devote more time to stock fundamentals and intrinsic value analysis."

 
Tyler Durden's picture

The Resurrection Of The Dying Art Of Economic Analysis (Or When The Fed Fails)





Detailed analysis of economic data is a dying art. The past seven year bull-market has largely justified the logic of such an approach, but the frenzied panic of the last month raises the question of whether investors will know how to adapt if the framework changes again. Recent market ructions offer the first evidence that central banks may be near the limit of their ability, or their willingness, to keep pumping up asset prices.

 
Tyler Durden's picture

Peter Schiff On The End Of The Illusion Of Recovery





The financial engineering that has been made possible by zero percent interest rates is no longer available to paper over weak corporate results in the U.S. Our economy is addicted to QE and zero rates, and without those supports, we will spiral back into recession. This is the reality that the mainstream tried mightily to ignore the past several years. But the chickens are coming home to roost, and they have a great many eggs to lay. In the end, stimulus does not create actual growth, but merely the illusion of it.

 
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