Thursday , 5 December 2019


Banking

Central Banks Creating A Looming Bubble in Long-Term Debt

In the aftermath of the financial crisis of 2007–2009, analysts and prognosticators have argued over what will likely be the next big bubble: will it be in auto loans, in equities, government bonds, or even in housing again? In fact, the biggest risk facing financial markets may be the financial asset duration bubble. Let me explain why that may well be the case.

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What the Heck Is Going On With the Chinese Yuan?

If you think that China's currency is a little confusing, you're not alone. Sometimes China devalues its currency on purpose and other times, China hoards gold or dumps U.S. bonds to prop it back up and protect its value. What gives? Today's infographic demystifies the Chinese Yuan.

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Types of Interest – How Their Rates Are Set – Why They’re Creating the Ultimate Bubble

The basic definition of an interest rate is simply the cost of borrowing money. It’s the cost associated with acquiring credit, whether buying a car, getting a mortgage, or taking a vacation. We encounter interest rates every time we make a monthly credit card or student loan payment. Interest and interest rates are a major part of daily life, yet many people don’t have a good understanding of the most critical types of interest or how their rates are set. Broadening our understanding even a little can help empower us to make more informed decisions, whether at the bank or at the ballot box.

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Most Americans Are Skeptical of the Fed’s Happy Talk – Here’s Why

The more I think about where the “monetary policy community” of academic elites has brought us, the angrier I get. It has been a long time since I have been this passionately upset about something - and not merely because the policies are stupid - but what the Fed has done is to destroy the retirement hopes and dreams of multiple tens of millions of my fellow U.S. boomers (and when we include the effects of the destructive policies of the rest of the world’s central banks, the number becomes hundreds of millions). This article looks at the FOMC’s decision-making process for monetary policy and surveys the unpalatable future that our leaders are cooking up for us.

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Deutsche Bank Is Heading For Disaster Unless…

The complete and total collapse of Deutsche Bank would be an event many times more significant for the global financial system than the collapse of Lehman Brothers was. Global leaders simply cannot afford for such a thing to happen, but without serious intervention it appears that is precisely where we are heading.

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A Stock Market Bust Is In the Making – Here’s Why

Increasing stock market prices are largely driven by an increasing rate of monetary inflation BUT monetary inflation growth has now been either flat or declining for the last three years, depending on what time frame one looks at. Conclusion: Earnings, and ultimately valuations, must fall as an ever-expanding rate of monetary inflation is unsustainable and as interest rates cannot forever be kept artificially low.

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