Friday , October 18 2019
Home / Tag Archives: Financial Repression

Tag Archives: Financial Repression

Will Social Security Be There for You? Status of the Social Security Trust Fund in Fiscal 2019

“Don’t rely on Social Security”: Inflation adjustments are punitively low, and benefits become more inadequate as you age. The  Old-Age and Survivors Insurance (OASI) Trust Fund – which does not include the Disability Insurance (DI) Trust Fund – closed the fiscal year 2019 at the end of September with a balance of $2.80 trillion, according to figures released by the Social Security Administration. This balance was up by $3 billion from September last year, but was down $16 billion from...

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Low & Negative Interest Rates Get Broadsided by the BIS

They undermine banks. To dodge the fallout, banks chase yield, buying stuff like CLOs, instead of lending. When loans go bad, banks may “evergreen” them.  By Nick Corbishley, for WOLF STREET: Prolonged low interest rates are having significant negative effects on banks’ core business and role in the economy, the Bank of International Settlements (BIS) warned in a new paper, just weeks after the ECB reduced its policy rate deeper into the negative after a tumultuous meeting where ECB...

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THE WOLF STREET REPORT: Here’s What I’m Worried About, and It’s Not a Recession

A rout in the hyper-inflated bond market can blow up everything at this point. (13 minutes) Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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Negative Yields Not Required: Even “Low” Interest Rates Screw Up the Economy

How to make a mess in the era of low demand. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: Now the plot thickens: I’ve got a former Secretary of the Treasury backing me up. We’ve already seen, including in my last podcast, how negative interest rates screw up the economy. Negative interest rates are so absurd that just thinking about them gives me a headache. In the era of negative interest rates, owning financial assets such as government bonds, or...

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THE WOLF STREET REPORT: How Even “Low” Interest Rates Screw Up the Economy

Interest rates don’t have to be negative to make a mess in the era of “Secular Stagnation.” (11 minutes) Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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How Negative Interest Rates Screw Up the Economy

Now they’re clamoring for this NIRP absurdity in the US. How will this end? This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: Now there is talk everywhere that the United States too will descend into negative interest rates. And there are people on Wall Street and in the media that are hyping this absurd condition where government bonds and perhaps even corporate bonds, and eventually even junk bonds have negative yields. All of that NIRP absurdity is already...

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THE WOLF STREET REPORT: How Negative Interest Rates Screw Up the Economy

Now they’re clamoring for the NIRP absurdity in the US. How will this end? (11 minutes) Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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Financial World Gone Nuts: $15 Trillion Negative Yielding Debt

12 countries with negative 10-year yields. A race to hell. Every day brings new indications that the financial world is going from already nuts to even nuttier. According to Bloomberg, the total amount of bonds outstanding globally that are trading with a negative yield exceed for the first time $15 trillion. This includes government and corporate debt, and also some euro junk bonds that have joined the elite group (click to enlarge): A chart like this, of markets and central banks...

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The Giant Sucking Sound of Financial Repression

In the US alone, it impacts nearly $40 trillion — with consequences for the real economy. This is the transcript from my podcast, THE WOLF STREET REPORT: It’s called interest-rate repression. Or more poetically, financial repression. It’s where central banks manipulate interest rates down to where investments with little credit risk, such as Treasury securities, FDIC-insured savings accounts and CDs, pay little or no interest, or pay less interest than the rate of inflation. People...

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THE WOLF STREET REPORT: The Giant Sucking Sound of Financial Repression

In the US alone, it impacts nearly $40 trillion. And there are consequences for the real economy (10 minutes). Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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