Paul Volcker Explains Why The Fed Can't Raise Rates

"Our current debt may be manageable at a time of unprecedentedly low interest rates. But if we let our debt grow, and interest rates normalize, the interest burden alone would choke our budget and squeeze out other essential spending. There would be no room for the infrastructure programs and the defense rebuilding that today have wide support."

World's Biggest Hedge Fund Evacuated After Receiving Wednesday Afternoon Bomb Threat

While bomb threats to schools and government institutions are a standard feature in this day and age, there was a twist on a familiar theme yesterday afternoon when employees of Bridgewater Associates, the biggest hedge fund in the world, evacuated from the company's Westport headquarters Wednesday after a " nonspecific bomb threat.

Hillary: Deceit, Debt, & Delusions (Part 2)

Here’s the game being played behind the curtain, never to be revealed by Hillary, Yellen, the captured dying legacy media, or anyone beholden to the establishment for their paycheck or bribe...

"Investment Returns Will Be Very Low Going Forward" Ray Dalio Says Gold Could Prove Preferable

With bond-stock correlations reaching record highs (and broad risk parity fund performance deteriorating rapidly), Ray Dalio’s $150 billion Bridgewater Associates managed modest gains across its main strategies last month - even as macro funds have suffered amid policy and political uncertainty. However, the manager of the world's largest hedge fund warns “Investment returns will be very low going forward,” in his latest investor remarks, suggesting that betting on gold could prove preferable.

Ray Dalio Warns A 1% Rise In Yields Would Lead To Trillions In Losses

"... it would only take a 100 basis point rise in Treasury bond yields to trigger the worst price decline in bonds since the 1981 bond market crash. And since those interest rates are embedded in the pricing of all investment assets, that would send them all much lower."

What Bridgewater's Ray Dalio Told The New York Fed

  • this isn’t a normal business cycle and we are likely in an environment of abnormally slow growth
  • the current tools of monetary policy will be a lot less effective going forward
  • the risks are asymmetric to the downside
  • the impatience with economic stagnation, especially among middle and lower income earners, is leading to dangerous populism and nationalism.

Is The Latest Risk-Parity Blow Up Just Starting

"the focus on risk parity unwinds is here to stay even beyond the next couple of weeks. As the polls for the US elections narrow further, higher volatility and increasing likelihood of fiscal stimulus will keep this theme alive.”"

Frontrunning: September 14

  • Bayer wins over Monsanto with improved $66 billion bid (Reuters)
  • Yen trims gains as doubts creep in over BOJ easing (Reuters)
  • BOJ to make negative rates centerpiece of future easing: sources (Reuters)
  • Stocks Halt Selloff in Europe as Commodities Gains Lift Miners (BBG)
  • Donald Trump, New Team Recast His TV Image (WSJ)
  • Hanjin Brings One of World's Busiest Shipping Terminals Close to Standstill (BBG)