Friday , December 15 2017
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Tag Archives: Central Banks

The Flattening US “Yield Curve”? NIRP Refugees Did it

Sez Fitch & Yellen US Treasury securities are doing something that is worrying a lot of folks, including Fed Chair Janet Yellen: While short-term yields are rising in line with the Fed’s hikes of its target range for the federal funds rate, longer-term yield have done the opposite: they’ve been declining. This has flattened the “yield curve” to a level not seen since before the Financial Crisis. This chart shows the yield curve of today’s yields (red line) across the maturity...

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Global Deflation Alert: Chinese Credit Creation Tumbles To 27 Month Low

At the end of November, we showed a troubling observation for China - and global - macro watchers from Axiom's Gordon Johnson: for the first time ever, record Chinese credit creation had failed to stimulate the economy, and in fact the exact opposite appeared to be unfolding – economic growth is slowing across a number of data points despite massive new credit injected into the economy over the past year. In economic terms, this meant that China's credit impulse had hit rock bottom, and...

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Asset Prices Are ‘Prices’ Too…

Authored by Thorstein Polleit via The Mises Institute, We live in inflationary times. Some people might consider this statement controversial. This is because these days inflation is widely understood as a rise in the consumer price index (CPI) of more than 2 percent per year. However, there are convincing reasons to question this viewpoint. On the one hand, the CPI does not include “assets” such as, for instance, stocks, housing, real estate, etc. As a result, the price developments of...

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It’s Official: Bitcoin Surpasses “Tulip Mania”, Is Now The Biggest Bubble In World History

One month ago, a chart from Convoy Investments went viral for showing that among all of the world's most famous asset bubbles, bitcoin was only lagging the infamous 17th century "Tulip Mania." One month later, the price of bitcoin has exploded even higher, and so it is time to refresh where in the global bubble race bitcoin now stands, and also whether it has finally surpassed "Tulips." Conveniently, overnight the former Bridgewater analysts Howard Wang and Robert Wu who make up Convoy,...

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Oil Producers Turning To Crypto To Solve Sanctions Problems

Authored by Tom Luongo, Last week, Venezuela announced it would develop a national cryptocurrency backed by its oil reserves, the Petro.  Now there is a report that Russia is considering the same thing.  Iran will likely follow suit. As of right now this is just a rumor, but it makes some sense.  So, let’s treat this rumor as fact for the sake of argument and see where it leads us. The U.S. continues to sanction and threaten all of these countries for daring to challenge the global status...

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Is Bitcoin, Millennial’s “Fake Gold”?

Authored by Vitality Katsenelson via RealInvestmentAdvice.com, I’ve been asked about Bitcoin a lot lately. I haven’t written anything about it because I find myself in an uncomfortable place in agreeing with the mainstream media: It’s a bubble. Bitcoin started out as what I’d call “millennial gold” – the young (digital) generation looked at it as their gold substitute. Bitcoin is really two things: a blockchain technology and a (perceived) currency. The blockchain element of Bitcoin may have...

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Doug Noland: There Will Be No Way Out When This Market Bubble Bursts

Authored by Adam Taggart via PeakProsperity.com, This week Doug Noland joins the podcast to discuss what he refers to as the "granddaddy of all bubbles". Noland, a 30-year market analyst and specialist in credit cycles, currently works at McAlvany Wealth Management and is well known for his prior 16-year stint helping manage the Prudent Bear Fund. He certainly shares our views that prices in nearly every financial asset class have become remarkably distorted due to central bank intervention,...

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Bond Bears Beware As Ag Prices Hit Record Low

Long-end bond yields are lower and the front-end higher once again this morning as the US Treasury yield curve continues to confound by flattening. Bloomberg macro strategist Mark Cudmore suspects there is more to come... for one simple reason, so often overlooked... Via Bloomberg, Cheaper eats are great, but maybe not if you’re one of the many expecting a sustainable bump in bond yields next year. Falling food prices risk wrecking the forecasts -- seen pretty much every December for years...

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A Gift From The Oldies

By Chris at www.CapitalistExploits.at I bumped into a friendly bloke at my local gym last week. Jim is his name. Jim tells me he just started because, and I quote, "my doctor says I'm going to die unless I do something". Now, I assure you it doesn't take a doctor to figure this out. One glance in Jim's direction and you can tell that underneath all that weight there's a big struggling heart in there... just ready to explode. He was surprisingly frank and tells me it's so bad that he can...

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These Are The 30 Biggest Risks Facing Markets In 2018

Once upon a time, Wall Street analysts had just two things to worry about: interest rate risk and corporate profits - virtually everything else was derived from these.  Unfortuantely, we now live in the new normal, where central banks step in every time there is even a whiff of an imminent market correction (as BofA explained last week), and the result is that nobody know what is and what isn't priced into the market any more, simply because the market in the conventional sense of a future...

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