Monthly Archive:: May 2018

The current view trending in social media as well as most of the financial media is that Italy is about to trigger a systemic collapse of Europe. Those proposing this theory are using charts of Italy’s bond yields and stock market that focus on the last few years when the country was being priced at

The “Italy Crisis” is over. I know the headlines read as though Italy was collapsing and the Euro is about to implode. But the headlines are reporting on yesterday’s news. The collapse of the Italy government means a new election. That, in turn, means a pro-Euro politician heading Italy. And that in turn means the

The “Italy Crisis” is over. I know the headlines read as though Italy was collapsing and the Euro is about to implode. But the headlines are reporting on yesterday’s news. The collapse of the Italy government means a new election. That, in turn, means a pro-Euro politician heading Italy. And that in turn means the

To recap yesterday’s piece concerning the recent shift in Central Bank policy, from mid-2016 onward: 1)   Central Banks engaging in emergency levels of QE at a time in which their respective economies were growing. 2)   Inflation bottoming then beginning to rise. 3)   Bond markets starting to revolt. 4)   Central Banks opting to walk back their

To recap yesterday’s piece concerning the recent shift in Central Bank policy, from mid-2016 onward: 1)   Central Banks engaging in emergency levels of QE at a time in which their respective economies were growing. 2)   Inflation bottoming then beginning to rise. 3)   Bond markets starting to revolt. 4)   Central Banks opting to walk back their

To understand the recent shift in policy by the European Central Bank (ECB) and Bank of Japan (BoJ), we need to first revisit what lead us to this point. With that in mind, let’s take a step back to mid-2016. At this time, the US Fed was the ONLY Central Bank that was tightening policy.

Let’s cut through the BS about Central Bank Balance Sheet reduction. There. Is. No. Exit. Once a Central Bank begins to employ ZIRP and QE for years at a time, there is no going back. If you don’t believe me, take a look at Japan. As I outlined in my book The Everything Bubble: the

Let’s cut through the BS about Central Bank Balance Sheet reduction. There. Is. No. Exit. Once a Central Bank begins to employ ZIRP and QE for years at a time, there is no going back. If you don’t believe me, take a look at Japan. As I outlined in my book The Everything Bubble: the

Let me let you in on a little secret… Central Bankers don’t actually WANT inflation. The Fed’s “inflation target of 2%” is a giant ruse. The Fed has no clue how to create or control inflation. They even admitted this in the minutes of the July 2017 FOMC meeting. So if the Fed has no

It’s a good thing that the BLS ignores things like the recent rise in real estate and gas prices when it generates its official inflation numbers… Why? Because if the BLS didn’t do this we might actually see that inflation is exploding higher. This is not conspiracy theory, it is fact. And if you don’t