Up until now, the world's descent into the NIRPy twilight of fiat currency was a function of failing monetary policy around the globe as central bank after desperate central bank implemented negative and even more negative (in the case of Denmark some four times rapid succession) rates, hoping to make saving so prohibitive consumers would have no choice but to spend the fruits of their labor, or[...]
Tag: currency wars
Fed’s Yellen Says Rate Hikes—But Not Too Many—Are Coming
By Greg Robb WASHINGTON (MarketWatch)—Federal Reserve Chairwoman Janet Yellen on Friday channeled her inner Mary Poppins, giving markets a spoonful of sugar while delivering the message that an increase in interest rates is coming soon. “I expect that conditions may warrant an increase in the federal funds rate target sometime this year,” Yellen told a conference sponsored by the San[...]
As Major Cracks Appear In The Global Financial System, It’s Everyone, Every Currency And Every Central Bank For Itself
By John Ing of Maison Placements March 24 (King World News) – Much is made of America’s economy becoming one of the fastest growing economies in the world. It is all relative. Debt has grown even faster. The US dollar too has soared relative to other currencies, thanks in part to a relatively better economic recovery and of course the trillions from the Fed’s bond buying program. However, [...]
“Belief That European QE Will Work Is Far-Fetched,” Bill White Warns This Will “End Very Badly”
As the title of Hinde Capital's latest note ascribes, we are on "The Road to Nowhere," and this excellent discussion with former BIS Economic Adviser (and teller-of-the-truth) William White explains it all.. "I'm not sure [European QE] is going to do anything - certainly, nothing that's good. The fundamental problem here, as I see it anyway, is that the European banking system is still broken... [...]
6 Major Flaws in the Fed’s Economic Model – James Rickards
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar. The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in the world. The Fed may have [...]
The United States, Weimar Germany And What The Fed Is Really Up To
Today one of the greats in the business spoke with King World News about the United States, Weimar Germany and what the Fed is really up to. He also included two fantastic illustrations that all KWN readers around the world must see. James Turk: "Each week the world’s financial picture goes further and further into la-la land, Eric. In short, things are getting crazier. An example is the[...]
The American Financial Disaster is a Mystery Only to Economists and other Financial “Experts”
I think I should accept that I will never in my life cease to be amazed at the capacity of the human being to spin a story to his/her own preferences, rather than take it simply for what it is. Your run of the mill journalist is even better at this than the average person – which may be why (s)he became a journalist in the first place -, and financial journalists are by far the best spinners[...]
After The Fed Crushed The Middle Class, It Is Targeting The American Family
On a number of occasions this month we’ve drawn attention to the divergent fates of the 80% of American workers whose wages are declining and whose general outlook is concomitantly deteriorating, and the other 20%, whose pay is increasing and who generally feel good about their economic future. We also pointed out that with the correlation between wages and consumer spending now nearly perfect[...]
France, Germany, Italy to Join China-Led $50bn Infrastructure Bank
France, Germany and Italy have confirmed they’ll join China’s new Asian Infrastructure Investment Bank (AIIB). Participation in the rival to the US-led World Bank is seen as a setback for the Obama administration. The three European countries on Tuesday confirmed in a statement they intend “to become founding members of the Asian Infrastructure Investment Bank,” according to[...]
ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt
Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB "leaks" that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on "the day after." And incidentally to all those curious what the fair[...]