• GoldCore
    05/06/2015 - 08:00
    China, the world’s largest gold producer and buyer, feels its market weight should entitle it to be a price setter for gold bullion. It is asserting itself at a time when the established benchmark,...

Nominal GDP

Tyler Durden's picture

Stimulate This! Thoughts On Intergenerational Fairness





Since this is the season for giving thanks in the US, we might give some consideration to the unsung heroes who have been underwriting a big chunk of our economic recovery of late. Actually, we literally owe our future to them - in more ways than one. Since there are no free lunches in economics (that we all must agree on), somebody has to pay for this. And it should be obvious by now who that will be: our children and grandchildren (and at this rate, probably their children and grandchildren too).

 
Tyler Durden's picture

Hugh Hendry: "I Believe Central Bankers Are Terrified"





"My premise hasn’t really changed since I published my paper explaining why I had become more constructive towards risk assets this time last year. That is to say, the structural deficiency of global demand continues to radicalise the central banking community. I believe they are terrified: the system is so leveraged and vulnerable to potentially systemic price reversals that the monetary authorities find themselves beholden to long only investors and obliged to support asset prices. However, I clearly confused everyone with my choice of language. What I should have said is that investors are perhaps misconstruing rising equity prices as a traditional bull market spurred on by revenue and earnings growth, and becoming fearful of a reversal, when instead the persistent upwards drift in stock markets is more a reflection of the steady erosion of the soundness of the global monetary system and therefore the rise in stock prices is something that is likely to prevail for some time."

 
Tyler Durden's picture

Debt, Propaganda And Now Deflation





Our world, our life, has been built on debt and propaganda for many years. They have kept us from noticing how poorly we are doing. But now a third element has entered the foundation of our societies, and it’s set to eat away at everything that has – barely – kept the entire edifice from crumbling apart. Deflation.

 
Tyler Durden's picture

Stephen Roach Warns The Fed's Fixation With Markets Is "A Potentially Deadly Trap"





The Fed remains fixated on financial-market feedback – and thus ensnared in a potentially deadly trap. Fearful of market disruptions, the Fed has embraced a slow-motion exit from QE. By splitting hairs over the meaning of the words “considerable time” in describing the expected timeline for policy normalization, Fed Chair Janet Yellen is falling into the same trap. Such a fruitless debate borrows a page from the Bernanke-Greenspan incremental normalization script of 2004-2006. Sadly, we know all too well how that story ended.

 
Phoenix Capital Research's picture

All Of These Items Point To a Collapse in the Markets





So… the economy is weak, corporate profits are unlikely to rise much, if at all, and stocks are sharply overvalued… ALL of these point towards another collapse in the markets…

 
 
 
Phoenix Capital Research's picture

Stocks Are Primed For a MAJOR Correction





When QE ends today, the Fed balance sheet will stop expanding. Which means stocks will be standing on their own two legs for the first time in the last two years. Unfortunately, those two legs: economic growth and earnings are both weak.

 
 
Phoenix Capital Research's picture

Neither the US Nor China Will be an Engine For Global Growth Next Year





The investment world is counting on China and the US to drive global GDP growth next year. Unfortunately it's banking on a false assumption.

 
Tyler Durden's picture

Van Hoisington And The Fed's Bubble: "Overtrading" And "Discredit" Always End In "Revulsion"





The U.S. economy continues to lose momentum despite the Federal Reserve’s use of conventional techniques and numerous experimental measures to spur growth. As Kindleberger clearly stated, the process of excess liquidity fueling higher prices in the face of faltering fundamentals can run for a long time, a phase Kindleberger called “overtrading”. But eventually, this gives way to “discredit”, when the discerning few see the discrepancy between prices and fundamentals. Eventually, discredit yields to “revulsion”, when the crowd understands the imbalance, and markets correct.

 
Tyler Durden's picture

Wall Street Is One Sick Puppy - Thanks To Even Sicker Central Banks





Last Wednesday the markets plunged on a vague recognition that the central bank promoted recovery story might not be on the level. But that tremor didn’t last long. Right on cue the next day, one of the very dimmest Fed heads - James Dullard of St Louis - mumbled incoherently about a possible QE extension, causing the robo-traders to erupt with buy orders. And its no different anywhere else in the central bank besotted financial markets around the world. Everywhere state action, not business enterprise, is believed to be the source of wealth creation - at least the stock market’s paper wealth version and even if for just a few more hours or days. The job of the monetary politburo is apparently to sift noise out of the in-coming data noise - even when it is a feedback loop from the Fed’s own manipulation and interventions.

 
Tyler Durden's picture

Kudos To Herr Weidmann For Uttering Three Truths In One Speech





Once in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets.

 
Tyler Durden's picture

Now Comes The "Specter Of Deflation": The Money Printers' Latest Scam





The Fed’s public relations firm of Hilsenrath & Blackstone was out this morning with the official line on the market’s tremors of recent days. It seems that $10 trillion in freshly minted digital money at the world’s major central banks over the last eight years—-that is, a tripling of their balance sheets to $16 trillion—- is not enough. Not only is 2% inflation still MIA, but it now threatening to enter the dark side: Behind the spate of market turmoil lurks a worry that top policy makers thought they had beaten back a few years ago: the specter of deflation.  Never mind that there is nothing close to a sustained run of negative consumer price indices anywhere in the world.

 
Phoenix Capital Research's picture

A Reversion to the Mean is Coming...





The market is primed to drop. Now is the time to prepare.

 
Tyler Durden's picture

RX For Revisionist Bunkum: A Lehman Bailout Wouldn’t Have Saved The Economy





Here come the revisionists with new malarkey about the 2008 financial crisis. No less august a forum than the New York Times today carries a front page piece by journeyman financial reporter James Stewart suggesting that Lehman Brothers was solvent; could and should have been bailed out; and that the entire trauma of the financial crisis and Great Recession might have been avoided or substantially mitigated. That is not just meretricious nonsense; its a measure of how thoroughly corrupted public discourse about the fundamental financial and economic realities of the present era has become owing to the cult of central banking. The great error of September 2008 was not in failing to bailout Lehman. It was in providing a $100 billion liquidity hose to Morgan Stanley and an even larger one to Goldman.  They too were insolvent. That was the essence of their business model. Fed policies inherently generate runs, and then it stands ready with limitless free money to rescue the gamblers.  You can call that pragmatism, if you like. But don’t call it capitalism.

 

 
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