Saturday, November 17, 2018

Tag: Debt

Everyone in Europe Needs to Take a Deep, Calming Breath

We don't yet know how the president-elect will behave in office. Meanwhile, the present state of hysteria could make things worse. “The sky is falling!” exclaimed Chicken Little, in the well-known folk tale, after an acorn fell on the poor fowl’s head, leading to mass hysteria over an imminent apocalypse...

Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

Bond investors may have another reason to worry after Donald Trump's election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank to shrink it. They argue that the Fed's debt portfolio has damaged the economy by...

Global Trumpism: Why Trump’s Victory Was 30 Years in the Making and Why It...

Trump's victory was predictable, and was predicted, but not by looking at polls. Polling has taken a beating recently having failed to predict the victory of David Cameron's Conservative Party in the British general elections, then Brexit, and now the election of Donald Trump. One can argue about what’s...

Bonds bloodied as Trump spending plans spur dollar

Routs in global bonds and emerging markets intensified, while the dollar climbed with base metals as investors positioned for the wave of fiscal stimulus that Donald Trump has pledged to unleash. The yield on 30-year Treasuries rose to the highest since January, with last week’s record debt selloff bleeding into...
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Michael Hudson on Hillary Clinton and the US Elections

In this clip from our extended interview, Prof. Michael Hudson, economist and author of ‘Killing the Host – How Financial Parasites and Debt Destroy the Global Economy‘, speaks to Ross Ashcroft about the difficult choice faced by Americans in the upcoming US elections. If Hillary Clinton is more capable than...
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Meet the Renegades: Michael Hudson

With every major financial recovery since the second World War beginning in a place of greater debt than the one before it, how could we not have foreseen the financial crisis of 2008? In this episode of Meet the Renegades, economics professor and author, Michael Hudson argues we did. How could...

Five Reasons You Should Blame The Economics Discipline For Today’s Problems

This ended up being a pretty long piece so, for the “tl;dr” people, here is a quick summary: We are experiencing deep economic problems and it is the fault of the economics discipline. Their macro theories suck. But, there is no mechanism forcing it to alter its models when they...

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US...

One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion,...

Europe Wishes to Inform You That the Refugee Crisis Is Over

Greece - Skala Sikaminias is a little beach town on the northern coast of the Greek island of Lesbos. A year ago, rickety wooden boats and dinghies packed with Syrian refugees began plowing into the narrow stretch of beach next to the taverna in the town square. Within days, the flotilla had swelled to vast proportions; as many as 7,000 Syrian refugees were landing on Lesbos every day.

Euro house of cards to collapse, warns ECB prophet

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned. "One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in...

Hillary Clinton Acknowledges Saudi Terror Financing in Hacked Email, Hinting at Tougher Approach

Saudi Arabia and the U.S. have maintained their alliance for seven decades despite disagreements over oil prices, Israel, and, more recently, the Obama administration’s rapprochement with Iran. Judging by a 2014 email purportedly written by Hillary Clinton to John Podesta, her current campaign chairman, and published by WikiLeaks, there have...

Eurogroup ministers back further bailout loans for Greece

EU finance ministers to release €2.8bn after Athens government carried out required reforms relating to privatising state assets, tax and pensions. Greece is on track to receive €2.8bn (£2.5bn) from its eurozone creditors by the end of October, after an agreement on Monday on the latest instalment of its multibillion-euro...

Can Russia Learn From Brazil’s Fate?

William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the...

Global debt climbs towards fresh high as companies and countries keep on borrowing

Global debt issuance is on course to hit a record high in 2016 as figures showed sales this year topped $5 trillion (£3.9 trillion) at the end of September. Debt issuance rose to $5.02 trillion in the nine months to September 22, according to Dealogic, putting 2016 on course to...

Treasury Market’s Biggest Buyers Are Selling as Never Before

They’ve long been one of the most reliable sources of demand for U.S. government debt. But these days, foreign central banks have become yet another worry for investors in the world’s most important bond market. Holders like China and Japan have culled their stakes in Treasuries for three consecutive quarters, the...

UN fears third leg of the global financial crisis – with prospect of epic...

The third leg of the world's intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history. It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal...

Get ready for the mother of all stock market corrections once central banks cease...

Global stock and bond markets have been all over the place of late. Rarely have investors been so lacking in conviction. Confusion as to future direction reigns, and with good reason after the spectacular returns of recent years. For how much longer can stock markets keep delivering? Is there another...

Foreigners turn away from Treasuries just when needed most: Analyst

The biggest buyers of U.S. Treasuries have turned fickle on U.S. debt, just when they may be needed most. Peter Boockvar, chief market analyst at The Lindsey Group, points out that for a fourth month in a row, foreigners were net sellers of U.S. notes and bonds, dumping $13.1 billion...

China facing full-blown banking crisis, world’s top financial watchdog warns

China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog. A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese...

The Coming Bond Bubble Collapse

In this week’s podcast, Michael Pento, fund manager and author of The Coming Bond Bubble Collapse, explains how the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of this bubble will cause a massive interest rate shock that...

Foreign Central Banks Sell A Record $343 Billion In US Treasuries In The Last...

One month ago, when we last looked at the Fed's update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $17 billion, bringing the total to $2.871 trillion, the lowest amount of Treasuries held by foreigners at the Fed since 2012. One...

Deutsche Bank: The US May Now Be In A Recession

Three months ago, we presented an analysis which showed something disturbing: according to Deutsche, the "current business cycle is already the fourth longest in the post- WWII period, and the corporate debt-to-GDP ratio suggests that imbalances are building", and that worse, as a result of soaring corporate debt and...

The One Trillion Dollar Consumer Auto Loan Bubble Is Beginning To Burst

Do you remember the subprime mortgage meltdown from the last financial crisis? Well, this time around we are facing a subprime auto loan meltdown. In recent years, auto lenders have become more and more aggressive, and they have been increasingly willing to lend money to people that should not be...

Saudi Arabia Said to Weigh Canceling $20 Billion of Projects

Saudi Arabia is intensifying efforts to shrink the highest budget deficit among the world’s biggest 20 economies, aiming to cancel more than $20 billion of projects and slash ministry budgets by a quarter, people familiar with the matter said. The government is reviewing thousands of projects valued at about 260...

China Is About to Get Serious With Bad Debt

China's banks, which dialed down fundraising efforts this year even as bad debts swelled, are making up for lost time. Both lenders and the companies set up to acquire their delinquent assets are bolstering their finances. China Citic Bank Corp. last month announced plans to raise as much as 40...

South Korea’s Hard Line on Hanjin Shipping Signals New Attitude

South Korea's decision to withdraw support for its largest shipping company has sent shock waves through an ailing global industry. It also shows Seoul’s toughening stance when it comes to troubled firms. Hanjin Shipping Co.’s potential bankruptcy would be the largest container-shipping failure in history, dwarfing all previous carrier bankruptcies,...

Biggest China Banks Grind Out Meager Profit Gains as Loans Sour

China's biggest banks are grinding out meager profit gains as they grapple with pressure from loans going bad. Agricultural Bank of China Ltd. on Friday posted a 0.5 percent increase in net income in the second quarter from a year earlier. China Construction Bank Corp. reported earlier in the week...

It’s Time for China Analysts to Stop Talking Past One Another

What exactly is going on in the People's Republic? Even with good data, experts can't agree. On August 12, the International Monetary Fund (IMF) issued its annual report card on China's economy and gave the country mixed grades, finding that its “economic transition will continue to be complex, challenging, and...

Lord Rothschild: This Is The Greatest Experiment In Monetary Policy In The History Of...

Two months ago, the bond manager of what was once the world's biggest bond fund had a dire prediction about how "all of this" will end (spoiler: not well). Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that...

In Surprising Twist, Global Central Banks Dump A Record $335 Billion In US Debt...

On Sunday, when looking at the latest update of the Fed's custody holdings of Treasuries, we noted something troubling: the number dropped sharply, declining by over $17 billion, bringing the total to $2.871 trillion, the lowest amount of Treasuries held by foreigners at the Fed since 2012. We added that...

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