The Fed is channeling higher interest rates: Fed Committee participants anticipating higher rates and inflation already permeating throughout economy.
A market addicted to low interest rates is about to get a shock. Today our debt addicted system is accustomed to central banks providing all sorts of easy money. The market is awash with easy credit and inflation is rearing its funky head in all sorts of segments of the economy. Low interest rates have […]
The big economies cannot avoid a soft default as they face their debt reckoning: U.S. and other central banks battle it out for artificially low interest rates on unsupportable levels of debt.
Would you lend money to someone that you knew would never pay you back? The answer is, probably not unless you are okay with burning through hard earned cash. The global central banks unfortunately have entered into terminal velocity when it comes to debt support. The U.S. carries a stunning $17.51 trillion in total public […]
The global debt reckoning – Total global debt at $230 trillion. Total world debt over 300 percent annual GDP. There is no escape from a reckoning with debt markets.
Total global debt crossed a troubling event horizon by going past the $200 trillion mark last year. Given the latest figures we are likely well above a total global debt of $230 trillion based on a comprehensive study done by ING last year. The banking sector rummages for every possible way of accessing debt. Global […]
Quantitative Easing has become heroin to the financial markets: Federal Reserve balance sheet hits $4 trillion this week.
Addiction is never an easy battle to overcome. This also applies to easy money addiction that is now part of the Quantitative Easing economy. The Fed’s extraordinary measures are now appearing to be more permanent measures. Every time the whispers of tapering are made the markets respond accordingly signifying that the stock market is fully […]
The Fed has built a financial pyramid based on unsustainable low rates. How the Fed is running out of economic curtains to hide behind when it comes to monetary policy.
The markets are pulling back dramatically because the Fed sneezed. The Fed essentially said they would begin tapering off their experiments in quantitative easing by pulling back their bond purchases from $85 billion a month to $65 billion. That is it. Not a shocking revelation. So why then are the markets plunging on this news? […]
Rationalizing and pushing the debt limit: The academic battle to open the gates on unlimited digital debt monetization.
One of the recent cases for the never ending expansion of debt purchases via central banks is the case of the Bank of Japan. The BoJ has essentially gone into hyper-drive with their version of quantitative easing by going straight into the Nikkei. The case seemed simple: the European Union mired in austerity measures has […]
The $10 trillion question. The ever expanding central bank balance sheets: What does $10 trillion buy you in the market today?
The Federal Reserve has waded deep into uncharted territory. The Fed has concocted new ways of monetizing debt and allowing banks to essentially expand their balance sheets with no real repercussions to the financial sector. Of course the shrinking middle class might have something to say about this or the 47.77 million Americans on food […]