Japan

The Oil Weapon: A New Way To Wage War

It was heinous. It was underhanded. It was beyond the bounds of international morality. It was an attack on the American way of life. It was what you might expect from unscrupulous Arabs. It was “the oil weapon” -- and back in 1973, it was directed at the United States. Skip ahead four decades and it’s smart, it’s effective, and it’s the American way. The Obama administration has appropriated it as a major tool of foreign policy, a new way to go to war with nations it considers hostile without relying on planes, missiles, and troops.  It is, of course, that very same oil weapon.

China's Own "Ebola" Claims Another 1826 Cases

While Ebola is getting all the headlines, China is dealing with "the worst outbreak in decades" of Dengue Fever. As ITAR-TASS reports, the outbreak of the mosquito-borne disease in China has killed six people and infected more than 27,200 according to Chinese health officials. Just today, the epidemic has infected 1,826 more people in the Guangdong Province alone. But it's not just China, last month Malaysia reported that dengue fever deaths had more than tripled in 2014, while Japan recently saw its first outbreak in 70 years with many contracting the illness at Tokyo's popular Yoyogi Park.

After Abenomics Failed In Japan, It Is About To Be Tried In Europe

After two years of Abenomics, Japan officially admitted it has entered a triple-dip recession. While people with a modicum of common sense warned this would happen long ago, it actually came as a surprise to traditionally trained economists: after all, a country whose economy collapsed under piecemeal episodes of "Abenomics" over the past three decades was supposed to, if only for those trained in the Keynesian school, promptly recover (even though its fundamental problem is not economic but demographic) when that which had failed for so long was applied in one shock episode. It didn't work. So now that Abenomics has officially failed in Japan (but will remain in place until Abe is ouster, either voluntarily as the local population has had enough of Japan's record inflation imports) what comes next? It is about to be tried in Europe of course

The Stronger Dollar = Stealth QE

Whether this trend will hold or reverse is unknown, but it does suggest that there are advantages to being the cleanest shirt in the dirty laundry.

GoldCore's picture

This week has seen some market volatility (see VIX Chart) reminiscent of the functioning market from days of old. The markets are spooked, bad news is overtaking good news and bearish views are becoming vogue. We are seeing a titanic battle taking place between the various bull and bear camps and they are starting to unleash some serious firepower. 

Where The US Is Importing All The "Evil" Deflation From, In One Chart

A year after the Fed injected $1 trillion into the stock market, the US economy was supposed to show stable, benign inflation north of 2%, validating stable, benign "growth" and pushing yields well into the mid-3% range. It failed to do that, stumping many a Keynesian hack who can't explain how it is possible that inflation (at least the variety measured by the BLS, not the real type, like food, energy, tuition costs, and healthcare which is considered largely irrelevant) has so far failed to spring up. For all those hacks, here is the answer in one simple chart.

Phoenix Capital Research's picture

At the end of the day, the Fed with its misguided theories have demolished capitalism: the single most powerful form of wealth generation in the history of mankind. All the Fed has really accomplished is leverage the entire financial by an even greater amount… which has set the stage for a collapse that will make 2008 look like a picnic.

 

On The Failure Of The Narrative Of ECB Omnipotence

"Global growth is really bad! Hooray!" That was the verdict of US markets yesterday, as the Fed minutes “revealed” (to use the breathless phrasing of mainstream financial media) a “growing concern” with the damaging impact of European torpor and a stronger dollar on US growth, and it’s a perfect example of why I’ve called a top in the Narrative of Central Bank Omnipotence. What’s interesting to us though is not this latest success of the Narrative of Fed Omnipotence. No, what’s interesting to me is this week’s failure of the Narrative of ECB Omnipotence.

Dow At 8,000

On Tuesday, the Dow fell 272 points. No big deal, of course - we rebounded the most in 3 years yesterday. But what if it continued? Just six years ago it fell 51%. It could easily do so again – back down to, say, 8,000. There would be nothing unusual about it. 50% corrections are normal. You know what would happen, don’t you? Ever since the "Black Monday" stock market crash in 1987 it has been standard procedure for the Fed to react quickly. But what if Yellen & Co. got out the party favors... set up the booze on the counter... laid out some dishes with pretzels and olives... and nobody came? What if the stock market stayed down for 30 years, as it has in Japan?

What Happens Next?

Yesterday's 'biggest surge in 3 years' ramp in stocks (following the release of September's FOMC meeting minutes) was, perhaps surprisingly, not unprecedented. When the Septemeber FOMC statement was released we saw the same kneejerk 'buy it all' reaction with a dramatic divergence between stocks and bond yields... so what happens next?

"Clueless", Reaccomodating Fed Spurs Epidemic Of Record Low Yields Around The Globe

  • IRELAND SELLS 10-YEAR BONDS AT RECORD-LOW YIELD OF 1.63%
  • GERMAN 10-YEAR BUNDS RISE; YIELD FALLS 2 BASIS POINTS TO 0.88%
  • DUTCH 10-YEAR GOVERNMENT BOND YIELD DROPS TO RECORD-LOW 1.021%
  • PORTUGUESE 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.942%
  • FRENCH 10-YEAR GOVERNMENT BOND YIELDS DROP TO RECORD-LOW 1.214%
  • U.S. 10-YEAR NOTE YIELD DROPS TO 2.296%, LOWEST SINCE JUNE 2013
  • SPANISH 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.038%
  • FINNISH 10-YEAR YIELD DROPS TO 1% FOR FIRST TIME ON RECORD

The Greatest Trick Mr. Market Ever Played?

"Don’t let the occasional 50-60% crashes disturb your peace of mind! You will always win in the long run! Long term bear markets don’t exist... well, maybe except in Japan. And much of the 18th century. But other than that, nothing can go wrong..."