Monetization

Monetization
Tyler Durden's picture

Deutsche Bank Is Back: 5 Year Sub CDS Soar To Record High





"Worse than Lehman" is how one European bond market trader described the carnage this week as the brief respite that ECB monetization and debt-buyback rumors provided yesterday have morphed into utter destruction this morning. European (and US) banks are a sea of contagious red with Deutsche Bank the tip of the collapse spear. Credit risk on Deutsche has exploded this morning with Sub CDS trading up 85bps to a record high 540bps... eerily reminiscent of the pre-Lehman bankruptcy week in 2008.

Time to panic now?

 
Tyler Durden's picture

Deutsche Bank Spikes Most In 5 Years (Just Like Lehman Did)





Rumors of ECB monetization (which would be highly problematic in the new "bail-in" world) and old news of the emergency debt-buyback plan have sparked an epic ramp in Deutsche Bank's stock this morning (+11% - the most since Oct 2011). This extreme volatility is, however, eerily reminiscent of 2007/8 when headline hockey sparked pumps and dumps on a daily basis in Lehman stock... until it was all over.

 
Tyler Durden's picture

Guest Post: How To Defeat Your Government





Lies are always misrepresentations of reality, and reality always wins. The US government rests on an inherently unstable foundation of whoppers - big lies so huge they would make big lie proponent Adolf Hitler blush. The first trick to defeating an enemy is to ascertain its biggest weaknesses and the lies, which it feeds itself, flowing from those weaknesses.

 
Tyler Durden's picture

Fed Lacks The Physical Cash, Legal Authority And Computer Systems To Implement NIRP, According To The Fed





"... at sufficiently negative IOER rates, DIs might opt to shift a significant quantity of their reserve balances into currency. Present Federal Reserve inventories of currency, at about $200 billion, would not be adequate to cover large-scale conversion of the nearly $1 trillion in reserve balances to banknotes."

 
Tyler Durden's picture

The Bank Of Japan - Ringing In The Keynesian Endgame





The time for more insanity has come... It is the Keynesian mantra: the fact that the policies recommended by Keynesians and monetarists, i.e., deficit spending and money printing, routinely fail to bring about the desired results is not seen as proof that they simply don’t work. It is regarded as evidence that there hasn’t been enough spending and printing yet.

 
Tyler Durden's picture

Gold, Political Instability, & Why QE Was The Worst Thing In The World





"You can’t deny the price action. Over the last few weeks, it is positively buoyant. If I were short, my butt cheeks would be tightening up. I’m starting to develop a theory, which is crazy, but then again... it might not be entirely crazy. You can help me decide. Maybe gold is starting to price in some of this political instability. Maybe it is starting to price in a Sanders or Trump presidency."

 
Tyler Durden's picture

The Ultimate "Truth Bomb" - The East Knows The West Is Bankrupt





What would the world look like the day following a “truth bomb” dropped by Mr. Putin and the Chinese.

 
Tyler Durden's picture

"A Historic Wealth Illusion Built On A Foundation Of False Promises"





What began with Greenspan’s early-nineties covert bank recapitalization evolved into Bernanke’s foolish policy to openly inflate risk markets with new central bank Credit. Amazingly, U.S. inflationism took the world by storm. The issue today goes much beyond a stock market correction, a bear market or even global financial crisis. Contemporary central banking has failed. Theories have failed. Doctrine has failed. The inability to spur self-sustaining economic recovery has been a major issue.

 
Tyler Durden's picture

Venezuela Hits "Point of No Return" - 2016 Bankruptcy Is "Difficult To Avoid" According To Barclays





The economic emergency decree and any measures that the government could take at this point may be too late. After two years of inaction and the recent decline in oil prices, a credit event in 2016 is becoming increasingly difficult to avoid, in our view.  After two years of inaction, with depleting external assets and the recent decline in oil prices, a credit event in 2016 may be becoming hard to avoid, in our view.

 
Tyler Durden's picture

And You Thought QE Was Over: The Fed Will Monetize Half Of This Year's U.S. Treasury Issuance





The Fed may have officially tapered QE at the end of 2014 but that doesn't mean it is done buying Treasuries: since the Fed never ended rolling over maturing paper, it means that it will remain indefinitely active in the open market. And while there were no sizable maturities from the Fed's various QEs to date (only $474 million in 2014 and $3.5 billion in 2015) that will change dramatically this year, when Brian Sack's team will have to purchase about $216 billion to replace matured TSYs. According to JPM calculations, this represents half the net new government debt that will be issued over the next 12 months.

 
Sprott Money's picture

Hiltzik echoes MSM confusion on gold





 by a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens

 
Tyler Durden's picture

Bull Market "Genius" Increasingly Exposed As Gross Incompetence





It was an ominous beginning to what is poised to be a most tumultuous year. Market participants are quickly coming to appreciate that China does in fact matter. Few understand why. Most – from billionaires to fund managers to retail investors – will “Do Nothing.” This has worked just fine in the past – repeatedly. Not understanding and not doing anything will be detriments going forward.

 
Tyler Durden's picture

The Bankers' India Gold Grab: An Update





In the eyes of Western bankers, it was the perfect “scheme” – hence their label for the plan. In the eyes of any sane, rational, human being, it was/is the most naked, clumsy fraud that one could possibly imagine. But the corporate media assured us there was considerable enthusiasm amongst India’s population for this scam. However, in two weeks, out of a population of more than one billion people, holding an estimated 40 million pounds of gold, the Conspirators managed to steal less than 0.000002% of India’s privately held gold. So we’re now told that India’s government sees “temple gold” as its best/easiest target for stealing.

 
Sprott Money's picture

The Bankers’ India Gold Grab: An Update





Will the scheme by the One Bank and India’s government to steal some/most/all of the 20,000 tonnes of privately held gold in India be successful?

 
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