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Tag Archives: Global Economy

The Inevitability Of DeGrowth

Authored by Charles Hugh Smith via PeakProsperity blog, Even though we don't know precisely how the future will unfold, we know a few things about it: Of the 7.5 billion humans on the planet, virtually every individual wants to enjoy a high-energy consumption “middle-class” lifestyle. As a generous estimate, 1.5 billion people enjoy a high-energy consumption lifestyle today; the remaining six billion are aspirants hungry for all the goodies enjoyed by the 1.5 billion—all goodies based on...

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The Silver Flash-Crash – “There’s No Such Thing As A Bad Tick”

Authored by Kevin Muir via The Macro Tourist blog, It’s one of those periods when everything is conspiring against precious metals. For those of the bullish persuasion, this can be a difficult time. I have resorted to wearing my own self-imposed “cone of precious metal trading” in an attempt to stop me from buying too much, too early. In fact, given the relationship between US 5 year TIPs yields and gold, it looks like our little yellow friend could still be vulnerable to further declines....

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Global Stocks Rebound From Korea Jitters; S&P Flat As Fed Minutes Await; Oil Slides

S&P futures were little changed at 2,425, ignoring the N.Korea tensions of the past two days which will likely be a major topic in the upcoming G-20 summit, as European stocks fluctuate and Asian markets advance. Crude oil fell, snapping the longest winning streak this year, as Russia said it opposed any proposal to deepen OPEC-led production cuts. Just like Tuesday, it was a session of two halves, with the Yen initially starting the day stronger as military tensions built up in Korean...

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The End Of The (Petro)Dollar: What The Fed Doesn’t Want You To Know

Authored by Shaun Bradley via TheAntiMedia.org, The United States’ ability to maintain its influence over the rest of the world has been slowly diminishing. Since the petrodollar was established in 1971, U.S. currency has monopolized international trade through oil deals with the Organization of the Petroleum Exporting Countries (OPEC) and continuous military interventions. There is, however, growing opposition to the American standard, and it gained more support recently when several Gulf...

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China ‘Rescues’ Bond Market In Symbolic Move But Yield Curve Remains Inverted

For the 10th day in a row, China's bond yield curve remains inverted (the longest in history). With yields at 3-year highs, corporate bond issuance is evaporating, and has now emerged as the latest major, and most imminent, threat facing China's financial sector and $10 trillion corporate debt market. However, it appears Chinese authorities have reached their max pain point. In a very symbolic move overnight, China's Ministry of Finance bought 1.26 billion yuan of 1-year bonds for the...

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A New Chinese Threat Emerges: Net Bond Issuance Crashes Most On Record

One month ago, we first highlighted a troubling development for China's banking system, one which we called the "Great Shadow Unwind" and which showed that entrusted loans, a broad proxy for China's unregulated ‘shadow banking’ system, contracted for the first time since 2007, confirming Beijing's ongoing crackdown of China's runaway $8.5 trillion shadow banking system. Well, overnight, the PBOC released its latest Chinese loan data, and it had several notable highlights, most of which got...

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“Fire” in the Bond Market – Fed Raising Rates and US Issuing Ultra Long Bonds – by Michael Carino

The bond market is on fire and you are about to get burned!!!  Bond yields are lower and interest spreads as tight or tighter than that of the bond market crisis of 2008.  This will lead to a catastrophic financial train wreck that can happen at any moment.  Why do I feel like I’m the only one sounding the alarms?  Where is the media to help warn and prepare the marketplace?  Why are investors going along and playing in what seems to be a rigged and tragically destructive game?  It reminds...

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UBS Has Some Very Bad News For The Global Economy

At the end of February we first highlighted something extremely troubling for the global "recovery" narrative: according to UBS the global credit impulse - the second derivative of credit growth and arguably the biggest driver behind economic growth and world GDP - had abruptly stalled, as a result of a sudden and unexpected collapse in said impulse. As UBS' analyst Arend Kapteyn wrote then, the "global credit impulse (covering 77% of global GDP) has suddenly collapsed" and added that "as...

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It’s Always Just A Question Of Price

Authored by Kevin Muir via The Macro Tourist blog, One of the biggest pushbacks about my theory that inflation is the real worry for the markets, not deflation, is the argument that there is no demand for credit, and therefore, inflation will never be able to take root. There can be no denying that Central Bankers throughout the world have had much more difficulty creating inflation than they would have ever guessed. Draghi and Kuroda would have never predicted it would take negative rates...

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Buried Beneath The Headlines…

Authored by Kevin Muir via The Macro Tourist blog, This morning’s big news is the Chinese announcement they would they would buy more US Treasuries as the Yuan stabilizes. From Bloomberg: China is prepared to increase its holdings of U.S. Treasuries under the right circumstances, as officials judge the assets are becoming more attractive than other sovereign debt and as the yuan stabilizes, according to people familiar with the matter. Treasuries rose, driving yields to the lowest since...

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