Yesterday we outlined that Central Banks’ War on Cash is about to go into Hyperdrive. Today we’re discussing just the policies Central Banks are already working to implement to eviscerate savings. Globally, over 50% of Government bonds currently yield 1% or less. These are bonds that are negative in real
The global Central Banks have declared War on Cash. Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, “cash is king.” The notion here is
The Central Banks are getting desperate. The interventions are so obvious now you’d have to be on drugs not so notice them. On Monday afternoon, at 3PM “someone” stepped in to prop up stocks. They did it again yesterday at 10AM. These were obvious interventions. How do we know this
For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis. All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. Similarly, anyone with a functioning
Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment. These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong. To whit… Gold has absolutely CRUSHED stocks
It would be a lot easier to be bullish today if the entire financial system wasn’t based on fraud and BS. Every explanation we see regarding the bull market in stocks is really just a cover for the fact that Central Banks spent $14 trillion propping up the bond bubble.
For over six years, the markets have been moving based on Central Banker actions and words. The first phase (2009 to 2013) was dominated by action (ZIRP and QE). The second phase (2013 to the present) was increasingly reliant on words (verbal intervention) as most Central Banks had by then
The Fed Vice-Chair has begun laying the groundwork for NIRP. The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
Something absolutely astounding has happened. Two weeks ago, the head of the Bank of Japan, Haruhiko Kuroda stated that Japan has a “potential growth rate of 0.5% or lower.” By way of context, remember that the Bank of Japan has been at the forefront for ALL monetary policy for decades.
Last night the Bank of Japan implemented Negative Interest Rate Policy, or NIRP. It is the second Central Bank to do so. The European Central Bank or ECB first went to NIRP in June 2014. Thus, between Japan and Europe, over 20% of the world’s GDP is being managed by
The stock rally of the last few days has investors wondering if the bottom is in. Unfortunately, it very likely is not. High Yield bonds have lead stocks to the upside. They are now leading to the downside, and the High Yield bond market indicates we have further to fall.
The world has yet to fully digest what is currently happening in Japan. Japan is the global leader for Keynesian Central Banking insanity. The ECB and US Federal Reserve began implementing ZIRP and QE after 2008. The Bank of Japan has been employing both ZIRP and QE since 2001. Put
As we outlined last week, the bursting of the bond bubble has begun. CNBC and the financial media may spend 99% of their time talking about stocks, but bonds are the single most important issue for Central Banks. When you consider everything in the context of the bond bubble, every
Stocks are rallying this morning. They are not rallying because of a change in fundamentals. They are not rallying because of a significant debt restructuring. They are not rallying because of great quarterly results from key economic bell-weathers. They are rallying because of hope for more Central Bank stimulus. This
Last year we predicted that the world had reached peak centralization and that going forward things would begin to fracture. What is centralization? Centralization is the process by which the world grows increasingly centralized, relying on Centralized organizations (Central Banks, sovereign governments, etc.) to determine the direction of capital and