Saturday , 24 March 2018

Tag Archives: higher interest rates

No Fewer Than FIVE Ominous, Vicious Cycles Await Us


Neither the White House nor the CBO have adequately considered the real impact of the very deficits they themselves are projecting. While they admit the deficits will be off the charts they fail to connect the dots from that admission to its obvious natural consequences — no fewer than FIVE ominous, vicious cycles.

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Coming Currency Debasement Good for Gold


When I look strictly at what’s actually going on in the world, I have to think that gold will go to at least $2,000 in this cycle and there are very credible scenarios in which it could go to a multiple of that number. Why am I so bullish for the yellow metal? Let me tell you why. Words: 469

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Stay in the Stock Market Despite Impending Economic Collapse – Here’s Why


You need to stay in markets despite an impending economic collapse. [Really?! Yes, really.] Normally such an expectation would be addressed by getting out of the way of the oncoming disaster and taking ones chips off the table [but,] in this situation, there is no place to hide. Low-risk assets, like bonds and near-cash, produce little to no return...and the threat of rising interest rates and inflation make them dangerous. Higher risk assets are unavoidable, given current conditions. [Let me explain further.] Words: 830

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Unsustainable Debt-to-GDP Ratio Will Result in (Hyper)inflation


Central banking makes it possible for the government to expand the money supply by any amount, at any time deemed necessary and once (hyper)inflation is publicly seen as being the lesser evil of all options available for the government meeting its debt service, it cannot be dismissed out of hand that (hyper)inflation would be the consequence of an unsustainable debt-to-GDP ratio.

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What Would An Interest Rate Hike In 2015 Mean For Stocks?


Sooner or later, the Federal Reserve will begin normalizing monetary policy, which means higher interest rates are coming, and this has investors rightfully worried because higher rates mean higher interest costs, which should be bad for profits and ultimately stocks. New research, however, suggests that a severe S&P reaction to such hikes is to be expected. Here's why.

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Housing Bubble Threatens Financial Stability of Canada – Here’s Why


Over the last 14 years, house prices in Canada have increased by 150%, twice as fast as in the U.S...[and] far outpacing household incomes. Any increase in interest rates would prick the bubble, and its implosion would trigger all sorts of mayhem to the point that the Canadian government has expressed concerned that such an event would be a significant risk to the "stability of the financial system".

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