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MIKE WHITNEY – Wall Street’s Savage Reckoning: Clouds Gather Over G-20 Summit

Finance ministers and central bankers from the world’s biggest economies met in Shanghai, China over the weekend to discuss many of the problems for which they alone are responsible. Leading the list of issues, was the steady deceleration in global growth which, to great extent, is the result of experimental monetary policies central banks implemented following the recession in 2009. …

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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 …

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Alternative Visions – Central Banks, Negative Rates, and the Growing Fragile Global Economy – 02.12.16

Jack reviews US Federal Reserve Chair, Janet Yellen’s, testimony to Congress this past week. Her overestimation of the health of the US economy and underestimation of the crisis in the global economy are noted, and special attention given to her statement that ‘negative interest rates’ are being prepared for in the US. The logic behind the $6 trillion in negative rates to date in Europe and Japan is debunked. And the negative consequences for the global economy from negative rates are explained. Central banks have gone too far, too long and are now trapped by their own policies, making the global economy worse by the day. Jack reviews evidence of the banking system beginning to crack in Europe (key banks there in trouble) and provides a summary of the ‘global financial fault lines’ from chapter 11 of his recent book, ‘Systemic Fragility in the Global Economy’, and his take on the most vulnerable financial markets. Also addressed is why the US working class is orienting toward Trump (45-54 age group) and Sanders (18-34) with serious implications for the Democrat and Republican establishments.

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CHRIS MARTENSON – The Return of Crisis: Everywhere Banks are in Deep Trouble

Financial markets the world over are increasingly chaotic; either retreating or plunging. Our view remains that there’s a gigantic market crash in the coming future — one that has possibly started now. Our reason for expecting a market crash is simple: Bubbles always burst. Bubbles arise when asset prices inflate above what underlying incomes can sustain. Centuries ago, the Dutch woke …

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Goldman Sachs Chief Threatened by ‘Dangerous’ Criticism from Sanders

Just days after a Bernie Sanders campaign ad singled out Goldman Sachs as “one of the Wall Street banks that triggered the financial meltdown,” the head of the global investment banking firm said such criticism is “dangerous.” According to The Hill: Sanders has railed against Wall Street throughout his populist campaign, accusing the sector of ruining the economy and holding down the middle class. …

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Bill Holter – Weapons of Mass Financial Destruction (WMFD)

Every once in a while it is a good thing to review something we already know and have known for quite a while.  What we’re talking about are derivatives and the very basics of how they work… or not.  We have seen massive volatility since the Fed raised rates last month.  The humor (tragedy), admitted to yesterday by the Fed, the …

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Mike Whitney – Could This be “The Big One”?

Everyone take a deep breath. This isn’t 2007 again.  The banks aren’t loaded with $10 trillion in “toxic” mortgage-backed securities, the housing market hasn’t fallen off a cliff wiping out $8 trillion in home equity, and the world is not on the brink of another excruciating financial meltdown.  The reason the markets have been gyrating so furiously for the last couple weeks is because stocks …

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Top Economist – Who Predicted the 2008 Crash – Confirms What Alternative Financial Sites Have Been Saying for a Decade

William White is one of the world’s top economists. He was the head economist for the Bank for International Settlements (BIS) – the world’s most prestigious financial institution, called the “central banks’ central bank – comprised of the world’s central banks.  He is now the chief economist for OECD, made up of most of the world’s richest and most powerful …

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Mike Whitney – The Fed’s Role in the Stock Market Slide

When the Dow Jones Industrial Average (DJIA) and S&P peaked in May 2015, investors were still confident that the Fed “had their back” and that any steep or prolonged downturn in stocks would be met with additional liquidity and a firm commitment to maintain zero rates as long as necessary.  But now that the Fed has started its long-awaited rate-hike …

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Trends This Week – Market correction or Market Crash? – 01.20.16

Gerald Celente breaks down how the talking airheads on business broadcast media keep missing the larger picture of crumbling worldwide economies and the undeniable underlying factors that ultimately will determine economic fate and your bottom line. While future quantitative easing measures or other central bank interventions may temporarily pause the sharp declines in markets worldwide, Global recession and even depression in some countries are unavoidable. Celente tells you what you need to know now.