By Jason Simpkins Six of the world’s central banks (Europe, Denmark, Sweden, Switzerland, Japan, and Hungary) representing 29 countries have taken interest rates negative. They range from -0.05% in Hungary to -1.25% basis points in Sweden. As a result, other countries, plagued by the same low commodities prices and a soft global economy, are now … Continue reading
By Egon Von Greyerz, GoldSwitzerland Investors around the world are blissfully ignorant of what will hit them in coming months and years. Virtually no one understands the risks in the world and less than ½% of investors have protected themselves against the destruction of their financial assets. It is of course wonderful to live in Shangri-La … Continue reading
By Egon Von Greyerz, Goldbroker.com The global economy turned down in earnest already in 2006 but with a massive worldwide printing and lending programme, the world has had a temporary stay of execution. But the effect of this fabricated money has now come to an end. And what else would you expect. To print money that … Continue reading
By Eugen von Böhm-Bawerk Economic forecasting, no matter how complex the underlying model may be, is essentially about extrapolating historical trends. We showed last week how economic models completely fail to pick up on structural shifts using Japan as an example. On the other hand, if an economy doesn’t really change much, as in the case … Continue reading
By Yonathan Amselem The greatest tragedy of the 2008–2009 financial meltdown was not that it happened. The collapse of asset prices was the necessary result of near zero interest rates. No, the most devastating aspect of the financial meltdown is that central planning alchemy lost no credibility. Policymakers around the world are still turning to Keynesian and socialist … Continue reading
By Phoenix Capital Research The Fed is “one and done” for rate hikes. It will not raise rates again. We called this back in mid-2015. The US economy is far too weak for the Fed to engage in anything resembling a series of rate hikes. Corporate leverage, household leverage, even the national debt stand at levels … Continue reading
By Paul-Martin Foss Bank of Japan governor Haruhiko Kuroda two weeks ago stated that there is no limit to the Bank of Japan’s monetary easing measures. “There aren’t any such things as a quantitative limit or anything, any numbers we can’t overcome,” he was reported to have said. Kuroda must apparently adhere to the Weimar School of … Continue reading
By Jeffrey P. Snider, Alhambra Investment Partners The IMF released the first 2016 edition of its World Economic Outlook (WEO). Titled Too Slow For Too Long, it seems as if the institution has finally caught on to the fact that the global recovery never really was a recovery. Throughout the report you get the sense that they … Continue reading
By Brendan Brown The leading narrative in the foreign exchange markets is told and re-told to explain how the Japanese yen has surged this year despite an ever wilder monetary experiment pursued by the Abe government. The story seems plausible to many, and thus is deeply challenging for the backers of sound money principles. The financial … Continue reading
By Michael Snyder Mainstream news outlets are already starting to use the phrase “economic collapse” to describe what is going on in some areas of our world right now. For many Americans this may seem a bit strange, but the truth is that the worldwide economic slowdown that began during the second half of last … Continue reading