Monetary Policy
With One Week Left Until The Fed's Rate Hike, Nobody Knows If The Fed Can Actually Do It
Submitted by Tyler Durden on 12/10/2015 15:56 -0500We are less than one week away from a historic monetary experiment in two parts: first, attempt the Sisyphean task of pushing up the rate of interest on over $2.5 trillion in excess liquidity, and second, to assure the market that it has correctly priced in the overnight evaporation of up to $800 billion (or more) in liquidity from asset prices. If one or both of these fail to deliver, than the embarrassing disappointment that marked the ECB's December announcement and its dramatic impact on asset prices and FX levels, will be a walk in the park compared to "disappointment" that the Fed will unleash once the market realizes that while in theory the Fed can and is ready to hike, it simply can't do so in practice.
How America's Middle Class Lost The War In One Simple Animation
Submitted by Tyler Durden on 12/10/2015 14:08 -0500"The middle class is disappearing,” says Alison Fuller, a 25-year-old university graduate working for a medical start-up in Smyrna, Georgia, who sees herself voting for Mr Trump."
Higher Interest Rates and Debt Reduction in 2016? Maybe...
Submitted by rcwhalen on 12/10/2015 07:18 -0500The Fed & ECB are spawning the next crisis....
America Crosses The Tipping Point: The Middle Class Is Now A Minority
Submitted by Tyler Durden on 12/09/2015 21:15 -0500Americans have long lived in a nation made up primarily of middle-class families, neither rich nor poor, but comfortable enough, notes NPR's Marilyn Geewax, but this year - for the first time in US history, that changed. A new analysis of government data shows that as of 2015, middle-income households have become the minority, extending a multi-decade decline that confirms the hollowing out of society as 49% of all Americans now live in a home that receives money from the government each month. Sadly, the trends that are destroying the middle class in America just continue to accelerate.
The Screaming Fundamentals For Owning Gold
Submitted by Tyler Durden on 12/09/2015 17:40 -0500- Bank of England
- Bear Market
- BOE
- Bond
- Central Banks
- China
- Chris Martenson
- Creditors
- default
- ETC
- European Central Bank
- Fail
- Federal Reserve
- Foreign Central Banks
- Gambling
- Gross Domestic Product
- Hong Kong
- India
- Janet Yellen
- Japan
- March FOMC
- Market Conditions
- Monetary Base
- Monetary Policy
- Money Supply
- MZM
- None
- Precious Metals
- Purchasing Power
- Real Interest Rates
- Reuters
- Sovereign Debt
- Standard Chartered
- Switzerland
- World Gold Council
Gold is one of the few investments that every investor should have in their portfolio. We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world's fiat (unbacked) currencies. If this experiment fails -- and we observe it's in the process of failing -- gold will provide one of the best forms of wealth insurance. But like all insurance products, it only works if you buy it before you need to rely on it.
Draghi's Currency War Ceasefire Faces Test As Sweden, Switzerland, Norway Take Aim
Submitted by Tyler Durden on 12/09/2015 12:23 -0500“I don’t think we’ve seen the last of this trend. When I trained as an economist, negative rates weren’t in the textbooks. But that’s the world we live in now, and it hasn’t stopped turning."
Ever Greater Distortions Hint At Rising Crash Probabilities
Submitted by Tyler Durden on 12/09/2015 08:41 -0500- Bank of America
- Bank of America
- Bank of New York
- Barclays
- Bear Market
- BIS
- Bond
- CDS
- Central Banks
- China
- Counterparties
- default
- Global Economy
- goldman sachs
- Goldman Sachs
- High Yield
- Investment Grade
- Japan
- Market Breadth
- Merrill
- Merrill Lynch
- Monetary Policy
- Money Supply
- Price Action
- Reality
- Repo Market
- Volatility
Government interference by both central banks and regulators (the latter are desperately fighting the “last crisis”, bolting the barn door long after the horse has escaped, thereby putting into place the preconditions for the next crisis) has created an ever more fragile situation in both the global economy and the financial markets. As the below charts and data show, price distortions and dislocations have been moving from one market segment to the next and they keep growing, which indicates to us that there is considerable danger that a really big dislocation will eventually happen.
Canada Just Warned That Negative Interest Rates Are Coming
Submitted by Tyler Durden on 12/08/2015 21:33 -0500Moments ago, the Bank of Canada's chief finally said what we had been patiently waiting for over the past several months: admission that Europe's experiment with negative rates is about to cross the Atlantic.
Jeff Gundlach's Most Bearish Presentation Yet: The Complete Slide Pack
Submitted by Tyler Durden on 12/08/2015 19:40 -0500
The American Forex Delusion
Submitted by globalintelhub on 12/08/2015 15:06 -0500Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe. This is no where more true than Forex.
RANsquawk Preview: Focus will be on the BoE's vote split alongside any comments on the UK inflation
Submitted by RANSquawk Video on 12/08/2015 10:18 -0500
PREVIEW: BoE December Rate Decision & Minutes Release 1200GMT/0600CST
• All surveyed analysts expect the Bank of England to keep monetary policy unchanged, with the bank rate at 0.5% and the Asset Purchase Facility at GBP 375bln
• Headline UK CPI printed at -0.1% for October, still well below the BoE’s mandated 2% target
Beware The "Massive Stop Loss" - JPM's Head Quant Warns This Unexpected Downside Catalyst Looms Next Week
Submitted by Tyler Durden on 12/07/2015 18:39 -0500"There are $1.1 trillion of S&P 500 options expiring on Friday morning. $670Bn of these are puts, of which $215Bn are struck relatively close below the market level, between 1900 and 2050. At the time of the Fed announcement, these put options will essentially look like a massive stop loss order under the market. This important event falls at a peculiar time—less than 48 hours before the largest option expiry in many years. "
The Era Of The Rock-Star Central Banker Is Far From Over
Submitted by Tyler Durden on 12/07/2015 12:53 -0500Paul Volcker and Alan Greenspan were the Elvis and Beatles of this movement – the first to see widespread fame for their efforts. Then came Ben Bernanke, perhaps the Jimi Hendrix or Led Zeppelin of his day, taking existing tools and pushing them in new, previously unconsidered, directions. Now, we have Janet Yellen and Mario Draghi, whose legacies are as yet undefined. They may end up like the next generation of rock stars from the 1970s – something like Bruce Springsteen, with a deep focus on common people in his music. Or, they could be the Bee Gees, who focused simply on commercial success. Only time will tell.
BIS Warns of ‘Uneasy Calm’ in Markets Before Possible Debt Storm
Submitted by GoldCore on 12/07/2015 11:38 -0500Less favourable financial market conditions, combined with a weaker macroeconomic outlook and increased sensitivity to US interest rates, heighten the risk of negative spillovers to EMEs once US rates do start to rise in the United States”
Is the Fed About to Light the Fuse on a $9 Trillion Debt Bomb?
Submitted by Phoenix Capital Research on 12/07/2015 08:13 -0500The US Federal Reserve (Fed) and European Central Bank (ECB) have created a very dangerous situation. And it is one that few if any investors are assessing.







