• Phoenix Capital...
    07/02/2015 - 11:09
    This process has already begun in Europe. It will be spreading elsewhere in the months to come. Smart investors are preparing now BEFORE it hits so they are in a position to profit from it...

Monetization

Monetization
Tyler Durden's picture

Goldman "Conspiracy Theory" Validated As ECB Expands QE Program





The ECB has expanded the list of PSPP-eligible SSA bonds, setting the stage for more ECB QE and turning one more conspiracy "theory" into conspiracy "fact."

 
Tyler Durden's picture

Goldman: "ECB Will Have To Go Big"





When it comes to Europe, Greece lost the blame game, and just like the Ukraine civil war last year, became an unwitting catalyst greenlighting Germany's concession to ECB QE, this time it may be Greece that launches the next step in the ECB's master plan: not just QE but more QE. This is precisely what Goldman's Franceso Garzarelli, co-head of macro and markets research, admitted earlier today in an interview on Bloomberg TV, when he said that the ECB "will have to go big" if the situation in Greece worsens and leads to wider peripheral bond yield spreads.

 
Tyler Durden's picture

Confusion Reigns At PBoC As Multi-Trillion Yuan Bailout Threatens To Undermine Rate Cuts





While China is rather proud of the fact that it hasn't yet implemented outright QE, Beijing has now put in place a bewildering hodge-podge of hastily construed easing measures that can't seem to get out of their own way.

 
rcwhalen's picture

Michael Whalen: Why the Streaming Music Business is Broken





Time for the musicians to learn the lessons that the video guys in Hollywood learned from them...

 
Tyler Durden's picture

Alexis Tsipras - Angel Of Mercy Or "Trusty" Of The Central Bankers' Debt Prison?





Greece, Europe and the world are being crucified on a cross of Keynesian central banking. The latter’s two-decade long deluge of money printing and ZIRP has generated a fantastic worldwide financial bubble, and one which has accrued to just a tiny slice of mankind. That much is blindingly evident, but there’s more and it’s worse. The present replay of high noon on Greece’s impossible mountain of debt clarifies an even greater evil. Namely, that the central bank printing presses have also utterly destroyed the fundamental requisite of fiscal democracy. To wit, in the modern world of massive, interventionist welfare states, fiscal governance desperately needs an honest bond market.

 
Tyler Durden's picture

The Fed’s Fatal Flaw: Gold And The Predictable Endgame





When and what will break the chains on gold by those seemingly omnipotent forces that so assuredly keep its price in check? In essence, the belief is (and I expect for most honest and impartial analysts this is true) that because there is potentially significant downside risk to a global monetary system built upon a currency to which gold represents the proverbial kryptonite (we’ll discuss why), there are checks in place within the system, to ensure that kryptonite doesn’t become too potent. The architects of the existing system would have been foolish not to implement checks on gold.

 
Tyler Durden's picture

What Happened The Last Time The Fed's Balance Sheet Hit 25% Of GDP





From the first rate hike by a Fed whose balance sheet as a % of GDP was nearly identical to the current one, to the start of World War II: less than three years.

 
Tyler Durden's picture

ECB Government Debt Monetization Slows Most Since First Week Of May





Perhaps just to confirm that Coeure's infamous leak had nothing to with seasonality and everything to do with micromanaging Bund yields, in the latest ECB weekly report, we learned that after purchasing €13 billion in sovereign debt under its PSPP program, in the week ended June 12 this number dropped to just €10.6 billion, a 18% drop from the past week, and a 22% drop from a month ago. This was also the lowest weekly purchase amount since the first week of May.

 
Tyler Durden's picture

The First Canary To Fall In Unicorn Valley Won't Be The Last





An odd occurrence took place this past week in the “Land of Unicorns” aka Silicon Valley. The first of what was once described as the “future of social media” canary’s Twitter™, was suddenly struck by the “Where’s The Money” kingdom aka Wall Street. Suddenly, what was once the dulcet tones for acquiring investment capital “eyeballs to monetize” is now being answered by the investment crowd in a much more sobering tone of “Where’s the monetized money?!”

 
Tyler Durden's picture

The Warren Buffet Economy, Part 4: Why Its Days Are Numbered





After 27 years, honest price discovery has been destroyed, thereby reducing the nerve centers of capitalism - the money and capital markets - to little more than gambling casinos. Accordingly, speculative rent-seeking in the financial arena has replaced enterprenurial innovation and supply side investment and productivity as the modus operandi of the US economy. This has resulted in a severe diminution of main street growth and a massive redistribution of windfall wealth to the tiny share of households which own most of the financial assets. Warren Buffett’s $73 billion net worth is the poster boy for this untoward state of affairs. The massive and systematic falsification of asset prices which lies at the heart of this deformation of capitalism is a direct and unavoidable consequence of monetary central planning.

 
Tyler Durden's picture

Investing In Gold (Because Central Bankers Will Never Get Religion)





Gold bugs weren’t wrong - just super early. If central banks ever got religion and pulled a Volcker and hiked rates to the moon, it would be a remarkably bad time to hold gold. However, throughout history, there have been times where people were very sad that they didn’t own gold. We talk about one of them here. It’s very real, and the history of fiat currencies is also quite sad.

 
Tyler Durden's picture

The Warren Buffet Economy, Part 2: Why Its Days Are Numbered





As we noted in Part 1, this central bank fueled boom will ultimately be paid for in the form of a prolonged deflationary contraction. On the morning after, of course, it will be asked why the central banks were permitted to engineer this fantastic financial and economic bubble. The short answer is that it was done so that monetary central planners could smooth and optimize the business cycle and save world capitalism from its purported tendency toward instability, underperformance and depressionary collapse. In Part 2, the whole case for this sweeping and unprecedented Keynesian demand management by the monetary authorities was a crock. Accordingly, the days of the Warren Buffet economy are indeed numbered.

 
Tyler Durden's picture

This Is What Happened The Last Time Pimco Dumped Its US Treasuries





If it is indeed deja vu, all over again, look for bond yields to tumble over the next 6 months.

 
Tyler Durden's picture

The Warren Buffet Economy, Part 1: Why Its Days Are Numbered





This central bank fueled boom will ultimately be paid for in the form of a prolonged deflationary contraction. Then, trillions of uneconomic assets will be written off, industrial sector profits will collapse and the great inflation of financial assets over the last 27 years will meet its day of reckoning. On the morning after, of course, it will be asked why the central banks were permitted to engineer this fantastic financial and economic bubble. The short answer is that it was done so that monetary central planners could smooth and optimize the business cycle and save world capitalism from its purported tendency toward instability, underperformance and depressionary collapse.

 
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