IMF Studies Piketty’s Work On Income Inequality, Finds There Is "No Empirical Evidence” To Support Claims

When Thomas Piketty’s "Capital in the 21st Century" came out in 2013, it quickly became a favorite of the political left and neo-Keynesian economists as his findings fit the narrative of increasing income inequality. Paul Krugman said “ Mr. Piketty’s contribution is serious, discourse-changing scholarship in a way most best sellers aren’t.  There may be just one problem with Piketty’s earth-shattering revelation: it appears to be wrong.

"Policymakers Have Been Calling A 'Depression' A 'Recovery' For Nearly A Decade"

"I'd like to think that logic and reality will prevail; that distaste for being told how great the world is has become sufficiently revolting and obviously false to stir the world’s populace to end the imbalances. But that, again, will take time, perhaps a good deal of time; until then, whenever it hopefully is, central banks continue to operate with impunity even though the risks of their intemperance rise exponentially..."

Paul Singer: "Donald Trump Will Cause A Widespread Global Depression"

It was not unti today, one day after Trump revealed the full extent of his trade program, that Singer lashed out and revealed the full extent of his loathing for Trump. During a discussion at the Aspen Ideas Festival in Colorado, Singer told CNBC that "the most impactful of the economic policies that I recall him coming out for are these anti-trade policies," Singer said "And I think if he actually stuck to those policies and gets elected president, it's close to a guarantee of a global depression, widespread global depression."

What A 'Carve-Up' - Economists Fake-Panic Over Brexit

Carve-up, n. “An act or instance of dishonestly prearranging the result of a competition.” Just two hours before it was barred from issuing any more fatuous propaganda about Brexit, the UK Treasury last week managed to surpass themselves...

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The Inflation Tipping-Point

The increasingly obvious trend reversal in inflation, amid softening growth, indicates the long predicted arrival of stagflation. While not unexpected, this is likely to propel the gold price higher.

The Inevitability Of Unintended Consequences

Why central planning efforts will ultimately backfire - Anyone involved with managing projects, people or systems knows that the only thing that can be planned with absolute certainty is that things will never go 100% according to plan. History is full of examples where governments' best-laid plans failed in spectacular fashion, exacerbating the very problems they were intending to solve. Here are a few of our favorites...

According To Deutsche Bank, The "Worst Kind Of Recession" May Have Already Started

According to Deutsche Bank the worst kind of a recession, an "endogenous one" in which labor demand plunges as "corporations are not just tired of negative profit growth, but also because they are drawing a line in the sand from the perspective of defending margins" may be imminent... or is already here because based on "payroll reports like last week’s suggest it could be around here."

Silver Linings: Keynesian Central Banking Is Heading For A Massive Repudiation

Inflation targeting has been a giant cover story for a monumental power grab. The academics who grabbed the power had no idea what they were doing in the financial markets that they have now saturated with financial time bombs. When these FEDs (financial explosive devices) erupt in the months and years ahead, the central bankers will face a day of reckoning. And they will surely be found wanting. The immense social damage from the imploding bubbles dead ahead will be squarely on them.

Race To Bottom Enters Final Lap: ECB Will Cut To -0.7% In June, JPM Predicts

We now expect the March package to include a larger deposit rate cut of 20bp, taking it to -0.5%
We now expect another package after that, possibly as early as June
We expect this second package to take the deposit rate to -0.7% and to extent QE until end-2017
Our forecast change is motivated by risk management amidst low inflation, rather than a macro forecast change

46 Months Of Accelerating Deflation Mean Beijing Is Now Trapped

At this point, the longer China does nothing, the greater its problems will become. As such Beijing needs to choose: either collapse the economy in a deflationary wave, leading to a debt crisis and widespread social unrest, or devalue massively overnight in hopes of stimulating inflation, leading to collapsing profit margins, and even more widespread social unrest.In short, our condolences China: having decided to adopt Western neo-Keynesian economics, with the typical monetarist bent, you too are now trapped with no way out. But don't worry: so is everyone else. Good luck.

Japan's Problems Will Not Be Solved By More QE, RBS Warns

"Japan’s experience suggests that QE has its limits, and could bring a range of side effects. These include years of tepid growth, the reduction in secondary trading liquidity, an increase in asset ownership by central banks (the BoJ now owns half of the national ETF market), potential formation of asset bubbles and social problems like inequality."

Stocks Jump On Hope For More Central Bank Intervention After Japan's Quintuple Recession, Syrian Strikes

As so often happens in these upside down days, was the best thing that could happen to the market, because another economic slowdown means the BOJ, even without sellers of JGBs, will have no choice but to expand its "stimulus" program (the same one that led Japan to its current predicament of course) and buy up if not government bonds, then corporate bonds, more ETFs (of which it already own 50%) and ultimately stocks. Because there is nothing better for the richest asset owners than total economic collapse.