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U.S. Bond Market’s Biggest Buyers Are Selling Like Never Before

Central banks have cut Treasuries for three straight quarters Pullback may be a sign the bond market is at a tipping point Share on FacebookShare on Twitter 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 …

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Alternative Visions – Why QE Policy is ‘Dead and Dying’ and ‘Helicopter Money’ Is An Alternative – 08.05.16

Jack Rasmus explains why all economic indicators for the US economy are ‘flashing red’ except for consumer spending, driven mostly by surging household debt again in credit cards, mortgages, auto loans and student loans. Meanwhile, 7 years of continued low interest rates created by the Federal Reserve (and other central banks) are creating a crisis in pensions, insurance, and sectors …

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Trends This Week – Trump imploding and the rigged economy – 08.03.16

Gerald Celente takes a deep dive into the news of recent days, especially the self-destructing Donald Trump and ever present war drums pounding in the background of the Presidential Reality Show. He updates listeners on critical economic trends, as well. Despite high expectations that the Bank of Japan would stimulate its nation’s foundering economy by driving interest rates further into …

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Gerald Friedmand – Why Liberal Economists Dish Out Dispair

The ferocious reaction to my assessment that Senator Bernie Sanders’ economic and health care proposals could create long-term economic growth shows how mainstream economists who view themselves as politically liberal in America have abandoned progressive politics to embrace a political economy of despair.  Rationalizing personal disappointment and embracing market-centric economic theories according to which government can do little more than fuss around the edges, …

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China Blowing Even Bigger Credit Bubble Puts World at Greater Risk, Says Global Strategist

China is blowing an even bigger industrial-growth bubble, central banks are attempting to prevent a global shock, and, meanwhile, all eyes are on the US dollar for clues as to which way things will go. So says Worth Wray, Global Macro Strategist at STA Wealth Management, in a recent interview with Financial Sense, who also notes that we may just …

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Alternative Visions – Europe’s Central Bank Expands Its QE in Response to Japan’s – 03.11.16

Last month the Bank of Japan (BoJ) expanded its QE program and negative interest rates (NIRP) in a desperate attempt to reboost its stock market and Yen exchange rate. This past week the European Central Bank (ECB)went a step further, as both the ECB and BoJ continue to engage in ‘dueling QEs’ that are intensifying global currency wars and slowing global trade. ECB chairman, Mario Draghi, lowered the Eurozone’s negative rate on government bonds another notch, now to -0.4%. Reportedly half of all government bonds in Europe now trade at negative rates. In addition, the ECB raised its monthly buying amount from $66 billion to $88 billion, and now will buy corporate bonds as well. The move subsidizes Euro corporations, lowering their costs of borrowing and insurance (CDS) on bonds, a move to offload the $1.5 trillion in corporate non-performing loans in Europe. Jack Rasmus explains why this won’t have any effect on the Eurozone real economy but will temporary boost stocks and currency. Jack also reviews why global oil prices have risen recently to $40 a barrel, Japan’s official return to recession after doctoring GDP numbers last 3Q2015, China’s latest ‘mini-stimulus’, the US deepening control of Ukraine’s economy, and the significance of the ‘Socialist’ government in France new attack on eliminating the 35 hr. workweek, where 90% of all jobs created in 2015 were part time and temp, and the mass protests now emerging there. Jack concludes with brief introduction to his forthcoming May 2016 book, ‘Looting Greece: The Emergence of a New Imperialism’, and his next book out October 2016 entitled, ‘Central Bankers on the Ropes’, both from Clarity Press. (see his blog, jackrasmus.com and Clarity Press for more information).

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Trends This Week – False faith, not hard data, boosting markets. Can it last? – 02.17.16

Trend forecaster Gerald Celente lays it on the table, dissecting why the bounce back in markets the last few days is bunk. After equity markets worldwide suffered one of the worst starts of a new year in history, stocks suddenly rebounded. For example, the Nikkei closed out last week at its lowest level since October 2014. But what economic fundamentals spiked prices higher this week? Was it the dismal news that Japan’s economy contracted 1.4 percent in the last quarter? No. What boosted stocks prices was the twisted rationale that despite the Bank of Japan firing two rounds of blanks from its “monetary bazooka,” the lousy Gross Domestic Product number was cause to launch yet another round of stimulus. Before Chinese markets opened Monday after being closed for a week, the Shanghai Index had fallen 47 percent since its peak in June. Was it on the rotten news that China’s exports fell 11.2 percent in January and imports plunged 18.8 percent that markets rallied? No. As with Japan, the dismal data was taken as a positive sign that the People’s Bank of China would take bold measures to boost sluggish growth. “Confidence,” trust the effectiveness of the rigged market game, not economic fundamentals, was the rationale for stocks suddenly moving higher. Tuesday’s New York Times headline summed it up: “Global Shares Buoyed by Investor Faith.” Yes, faith in more failed central-bank stimulus and stock and bond buyback sideshows… not faith in true price discovery and robust Gross Domestic product growth.

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Neil Irwin – Negative 0.5% Interest Rate: Why People Are Paying to Save

When you lend When you lend somebody money, they usually have to pay you for the privilege. That has been a bedrock assumption across centuries of financial history. But it is an assumption that is increasingly being tossed aside by some of the world’s central banks and bond markets. A decade ago, negative interest rates were a theoretical curiosity that …