Sovereign Debt

Tyler Durden's picture

Paul Krugman Is Wrong About The UK And Borrowing





Krugman wants his US readers to believe that all proper economists now agree that cutting deficits was a bad mistake, and it’s only self-interested finance types and ideologically-motivated politicians and think-tankers that take a different view. But that’s nonsense. Just think about it: “Everyone agrees that austerity was a mistake”… apart from every government in Europe except the Greeks, and the economists and many of the civil servants that advise them. Krugman and his fan-club do not constitute all serious opinion, much as they might like to regard themselves that way. It’s all very nice sitting in a US university office preaching to the Europeans (or, indeed, preaching in the New York Times)

 
Capitalist Exploits's picture

Is This How It All Begins to Unravel?





If the Fed indeed raises rates in June, we're likely to begin to see periphery sovereign debt defaults

 
Phoenix Capital Research's picture

How Governments Worked WIth the Banks to Create the $555 Trillion Interest Rate Bubble





Between 2000 and today, the global bond market has nearly TRIPLED in size. Today, it’s north of $100 trillion in size. And it’s backstopping over $555 trillion in derivatives trades.

 
Tyler Durden's picture

Which European National Central Bank Is Most Likley To Become Insolvent, And What Happens Then?





In the aftermath of the ECB's QE announcement one topic has received far less attention than it should: the unexpected collapse of risk-sharing across the Eurosystem as a precursor to QE. This is what prompted "gold-expert" Willem Buiter of Citigroup to pen an analysis titled "The Euro Area: Monetary Union or System of Currency Boards", in which he answers two simple yet suddenly very critical for the Eurozone questions: which "currency boards", aka national central banks, are suddenly most at risk of going insolvent, and should the worst case scenario take place, and one or more NCBs go insolvent what happens then?

 
Tyler Durden's picture

We Must Rethink "Everything" If We Are To Survive This Strange New World





These negative rates that we see in Europe are a first glimpse of fiat currency destruction due to imploding economies.  And again the negative rates are nominal rates meaning they are negative by way of something beyond inflation.  Specifically they are moving to their natural minimum state of valuelessness because the economy is no longer strong enough to provide alternative investments for the fiat currency.  Fiat currency is shown then not to be a storage of value whatsoever.  But only a representation of strength of its respective economy.  As the economy goes to zero so does the value of its currency.  This point is exceedingly imperative to understand in our current global environment.

 

 
Phoenix Capital Research's picture

Greece is Just the Tip of the Iceberg for the $100 Trillion Bond Bubble





This is why the Greek debt crisis continues without end. The minute Greek bondholders have to take a REAL haircut, the wheels come off the EU and the $100 trillion bond bubble finally blows up.

 
 
Tyler Durden's picture

The Full Explanation Of How The ECB Broke Europe's Bond Market





When even JPMorgan strongly implies that the ECB's QE is about to fail, one short week after it started, now may be a time to panic: "In all, we note the above analysis challenges the ability of the Eurosystem to meet its quantitative target without distorting market liquidity and price discovery."

 
Tyler Durden's picture

When Even Varoufakis Mocks The QE "Wizard", The Game Is Almost Up





Someone call the ECB because it looks like the game is well nigh up. Greek FinMins are taking time away from photo shoots and looting pension funds to call out QE for creating equity bubbles and the mainstream financial news media has figured out that there’s an acute collateral shortage and that buying €1.1 trillion in bonds €15 million at a time probably indicates a forced deviation from the original plan.

 
Tyler Durden's picture

IMF Approves $17.5 Billion Ukraine Bailout





To summarize: Greek pensioners are now paying the IMF, which is paying Kiev, which is paying Gazprom, which is paying Putin.

 
Tyler Durden's picture

"Neither Central Bankers Nor Market Participants Can Extract Any Information From Current Bond Valuations"





All is not what it seems. Markets are upside down. Some ‘risk?free’ assets can be purchased for a guaranteed loss. EU asset markets (ex?Greece) are soaring at the same time that EU disunity is rising. An interest rate hike by the Fed is likely to cause a rally in Treasury bonds and a steep correction in US equities.

 
Tyler Durden's picture

Fed Unveils Headache-Free QE Math





Do derivatives confuse you? Do you hate bond math? We feel the same way! So we simplified your life with headache free QE math. Compounded rates, equivalent rates, production functions: who needs old math?

 
Tyler Durden's picture

The Nasdaq Has Become The Biggest Circle-Jerk In History





When the same management teams that sell record amounts of their own company stock to the companies they control - companies which are now buying back record amounts of stock, this is not only the worst possible conflict of interest, it means, for lack of a better word, that the Nasdaq, bubble or not, has become the biggest circle jerk in history!

 
Tyler Durden's picture

The Global Problem: Monetary Policy Can't Fix An Economy's Structural Problems





What with all the praise being heaped on central banks for "saving" the world from economic doomsday in 2008, it's only natural to ask which structural problems their unprecedented policies solved in the past 6 years. After all, "saving" the world from financial collapse was relatively quick work; so what problems beyond imminent implosion did the central banks policies solve in the past 6 years? Answer: none. zip, zero, nada. The truth is central bank policies of zero-interest rates and free money for financiers have made many structural problems worse.
 
Phoenix Capital Research's picture

The Second Round of the Crisis Will DWARF 2008 In Size and Scope





All of the biggest problems in the financial world revolve around the bond markets today: Greece, Japan, the Fed's interest rate hike, etc.

 
 
Tyler Durden's picture

Financial Collapse Leads To War





Financial collapse is already baked in, and it's only a matter of time before it happens, and precipitates commercial collapse when global supply chains stop functioning. Political collapse will be resisted, and the way it will be resisted is by starting as many wars as possible, to produce a vast backdrop of failure to serve as a rationale for all sorts of “emergency measures,” all of which will have just one aim: to suppress rebellion and to keep the oligarchy in power.

 
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