Sunday, May 26, 2013
The Japan Implosion Is Progressing
Remember: Japan was using almost 25% of their tax revenue to service their national debt before this spike started. They are in a debt trap and the noose is tightening. Rapidly.
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/05/20130522_JGB2.jpg
Japan Govt Bond Year to maturity 10 Year Simple Yield
http://www.bloomberg.com/quote/GJGB10:IND/chart
THE ECONOMIC COLLAPSE OF JAPAN IS NOW IN PROGRESS – ALL THE ELEMENTS ARE IN PLACE FOR A DEBT CRISIS
http://investmentwatchblog.com/the-economic-collapse-of-japan-is-now-in-progress-all-the-elements-are-in-place-for-a-debt-crisis/
Japan’s bond market is officially losing control.
We have definitely taken out the multi-year trendline here, making a new high higher after a higher low. This is BAD news as it indicates that Japan’s bond market could be entering a cyclical downturn.
Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.
the key part of the video, for ease of viewing:
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/05/20130522_JGB2.jpg
Japan Govt Bond Year to maturity 10 Year Simple Yield
http://www.bloomberg.com/quote/GJGB10:IND/chart
THE ECONOMIC COLLAPSE OF JAPAN IS NOW IN PROGRESS – ALL THE ELEMENTS ARE IN PLACE FOR A DEBT CRISIS
http://investmentwatchblog.com/the-economic-collapse-of-japan-is-now-in-progress-all-the-elements-are-in-place-for-a-debt-crisis/
Japan’s bond market is officially losing control.
We have definitely taken out the multi-year trendline here, making a new high higher after a higher low. This is BAD news as it indicates that Japan’s bond market could be entering a cyclical downturn.
Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.
the key part of the video, for ease of viewing:
Banking insider: The Japanese have lost control of their bond market
The Examiner – by KENNETH SCHORTGEN JROn May 24, a financial analyst and former head trader at the Royal Bank of Scotland spoke on the Hagmann and Hagmann Report regarding the current state of the global economy. Known in the public sphere under the pseudonym of ‘V‘, and labeling himself the Guerrilla Economist, this high level insider stated that the Japanese have completely lost control over their bond market, and the threat for a collapse of the Nikkei equities market is very likely.
V: I basically just got this hot off the press, and hot from the board rooms over here. The Japanese, and this is official… I’m going out on a limb saying this, and you can take it for all it’s worth… the Japanese have lost control of their bond market.
Doug Hagmann: V, for financial neophytes like me, what does that mean?
V: What that simply means is… see the stock market has been rising inJapan, as well as over here because of bond prices. Were in a very unique environment where, if the bond market goes bust, you’re going to see the Nikkei go bust with it, as well as real estate.
That also coincides with us. The collapse that is going to occur here, is going to be a trifecta of bonds, stocks, and real estate combined. So when the Japanese have lost control of their bond market, and the yields are getting higher and higher, and the interest rates are starting to climb on it, nobody’s buying it. So right now, the Bank of Japan has ordered all the public pension funds to begin to buy the Japanese debt. - V, Hagmann and Hagmann Report, May 24
On Friday, BNP Paribas issued a similar warning as the Guerrilla Economist, only not going so far as to confirm that the Japanese bond market was out of control for the government, and central banks. BNP’s focus was on the massive Japanese debt, and what a bond collapse would do for interest rates, and the inability of Japan to deal with that debt once rates begin to skyrocket.
Japan today faces a situation very similar to the US in the 1940s. With the market becoming dysfunctional as the BoJ’s massive buying operations drain the pool of available bonds, the BoJ’s overriding presence in the market each day has increasingly made the JGB market seem like a government-made market.With the global economy so intrinsically tied to itself, what happens in Asia usually spreads in a day throughout Europe and the United States, and vice-versa. Japan’s butterfly is currently flapping its wings, and in a round-about way, is causing an unemployed Greek to turn toprostitution to afford food to eat. In essence, what happens in nearly every major economy now trickles down, in some form large or small, to every other economy.
But a much bigger problem is Japan’s exploding public debt. With the debt already the largest of the developed nations, it could snowball out of control if an upturn in interest rates causes interest payments to escalate. - BNP via Zerohedge
The events of last week in Japan, where the stock, bond, and futures markets raged in uncontrolled chaos despite trillions of yen in quantitative easing, and an outright halting of the bond market itself, gives strong credence to V’s affirmation that Japan has completely lost control of their bond market, and will result in a detrimental outcome for the rest of their asset based markets.
You can find more financial updates by the Guerrilla Economist at Steve Quayle’s website under the Q Alerts section, and periodically on the Hagmann and Hagmann Report.
Wall Street is writing its own regulation bill
RT NewsBank lobbyists have a direct influence on financial legislation drafted in Congress, and are in some cases even writing the measures themselves. Citigroup this month drafted a regulation bill that has already passed through a House committee.
To soften financial regulations, bank lobbyists frequently ‘assist’ lawmakers in writing draft legislation that serves to benefit them at the expense of American taxpayers, according to a New York Times investigation.
Lobbyists working for Citigroup Inc., a multinational financial services corporation, wrote 80 percent of a regulation bill that was approved by the House Financial Services Committee this month. Citigroup wrote 70 lines of 85-line bill, which exempts “broad swathes of trades” from new regulation, the Times reported based on e-mails it obtained.
Two paragraphs of the bill were copied “nearly word for word” from what Citigroup drafted. The only difference between the versions were two words, which lawmakers changed to make plural.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law in 2010, inflicted heavy financial regulatory reform following the most recent recession. The bill was pushed into law by Democrats, but now, both Democrats in the House and Senate are siding with bank lobbyists to roll back parts of the regulation overhaul.
The bill drafted primarily by Citigroup this month was starkly opposed by the Treasury Department, but easily made it through the House Financial Services Committee, the Times reports. MapLight, a nonprofit group that analyzes campaign finance records, found that lawmakers who supported Wall Street’s legislation received twice as much in contributions from financial institutions than those who opposed such measures, which appears to indicate that lawmakers’ support can be bought.
This month, Wall Street groups also held fundraising dinners for lawmakers who co-sponsored the bills they backed and in some cases co-wrote. As a reward for siding with bank lobbyists, these lawmakers were granted a dinner in which attendees paid up to $2,500 for a plate.
When questioned by the Times, bank industry officials said that helping draft legislation was a common practice on Capitol Hill, but argued that they do not undermine Dodd-Frank.
“We will provide input if we see a bill and it is something we have interest in,” said Kenneth E. Bentsen Jr., a Wall Street lobbyist. Bentsen is a former lawmaker himself, and many financial institutions’ lobbyists have worked as Capitol Hill aides and staffers before taking on their current roles.
Jeff Connaughton, a former lobbyist and former congressional staffer, said that Wall Street has so much influence on the Hill that it “skews the thinking of Congress.”
“It’s appalling, it’s disgusting, it’s wasteful and it opens the possibility of conflicts of interest and corruption,” Rep. Jim Himes, a top recipient of Wall Street donations and a former banker at Goldman Sachs, told the Times, admitting his own faults. “It’s unfortunately the world we live in.”
President of Iceland calls for scrutiny of economic failure at Global Leadership Summit 2013 in London
The President of Iceland, Ólafur Ragnar Grímsson has called for
transparent scrutiny of the fundamental economic failures amongst
European institutions during the recent Global Leadership Summit 2013
(GLS2013) at London Business School, UK.
The President joined a discussion led by Richard Quest, an International Business Correspondent for CNN International, as part of the closing keynote Iceland´s Road to Recovery and Closing Remarks, which took place Monday 20th May 2013.
During the President’s keynote, he states, “Like in many other times in European history, they [European Union leaders] are victims of an ideological prison.” He continues by mentioning, “What is lacking is the honest, intellectual, political, economic examination within the European institutions, of the fundamental failure, which the last four or five years has produced.”
President Grímsson explained that he can’t understand why banks are being considered the holy churches of the modern economy, and that Europe’s primary legacy to the world is not financial markets, but democracy, the rule of law and human rights.
When speaking about Iceland’s recovery, President Grímsson explained that Iceland focused on saving the welfare services of those who have the lowest income, rather that implement the austerity measures recommended for other European countries.
“We saw a situation where our [Iceland’s] entire demographic and social fabric was breaking down; it was one of the most dramatic examples in recent history that the failure of financial markets can fundamentally threaten European and Western democracy,” explained Grímsson.
During the keynote, Quest asked for his reasons why Grímsson chose to veto the Icesave bailouts, even though Parliament passed this legislation twice. Grímsson explained that the Icelandic parliament partly passed this legislation because the “Gordon Brown government”, supported by every European government, used the board of the IMF for the most elaborate high-level financial blackmail [he] had ever witnessed. Stating:
“If we didn’t make the ordinary people of Iceland responsible for the failure of a private bank in Britain, the IMF programme for Iceland would have been stopped, and it was for over a year. That was why the government of the time thought that they had to make a deal, but the interesting fact now is that we know, because it has been tested, that this policy that was reported by every European government was so wrong; it turned out to be financial wrong, demographically wrong and also legally wrong.“
He followed by saying, “In order to help Europe to get out of this deep crisis, they should ask themselves why they were so wrong in this case; if it was even illegal within the European Financial System to ask the people of Iceland to be responsible for the failure of a private bank.”
The Global Leadership Summit is an annual discussion held by London Business School, whereby leading figures in international politics and media insight on the future of global leadership, and about the challenges of past and modern day leadership.
To watch the keynote in full, click here – viewers will have to register first.
The President joined a discussion led by Richard Quest, an International Business Correspondent for CNN International, as part of the closing keynote Iceland´s Road to Recovery and Closing Remarks, which took place Monday 20th May 2013.
During the President’s keynote, he states, “Like in many other times in European history, they [European Union leaders] are victims of an ideological prison.” He continues by mentioning, “What is lacking is the honest, intellectual, political, economic examination within the European institutions, of the fundamental failure, which the last four or five years has produced.”
President Grímsson explained that he can’t understand why banks are being considered the holy churches of the modern economy, and that Europe’s primary legacy to the world is not financial markets, but democracy, the rule of law and human rights.
When speaking about Iceland’s recovery, President Grímsson explained that Iceland focused on saving the welfare services of those who have the lowest income, rather that implement the austerity measures recommended for other European countries.
“We saw a situation where our [Iceland’s] entire demographic and social fabric was breaking down; it was one of the most dramatic examples in recent history that the failure of financial markets can fundamentally threaten European and Western democracy,” explained Grímsson.
During the keynote, Quest asked for his reasons why Grímsson chose to veto the Icesave bailouts, even though Parliament passed this legislation twice. Grímsson explained that the Icelandic parliament partly passed this legislation because the “Gordon Brown government”, supported by every European government, used the board of the IMF for the most elaborate high-level financial blackmail [he] had ever witnessed. Stating:
“If we didn’t make the ordinary people of Iceland responsible for the failure of a private bank in Britain, the IMF programme for Iceland would have been stopped, and it was for over a year. That was why the government of the time thought that they had to make a deal, but the interesting fact now is that we know, because it has been tested, that this policy that was reported by every European government was so wrong; it turned out to be financial wrong, demographically wrong and also legally wrong.“
He followed by saying, “In order to help Europe to get out of this deep crisis, they should ask themselves why they were so wrong in this case; if it was even illegal within the European Financial System to ask the people of Iceland to be responsible for the failure of a private bank.”
The Global Leadership Summit is an annual discussion held by London Business School, whereby leading figures in international politics and media insight on the future of global leadership, and about the challenges of past and modern day leadership.
To watch the keynote in full, click here – viewers will have to register first.
Money Debauchery Continues
I
was a small child when America’s coinage began to be debased in 1965.
My dad was a coin collector who fastidiously filled blue coin books with
old coins. I remember being especially intrigued by the 1943 steel
penny. During World War II, my dad explained, the country was short on
copper, and the Mint used steel to make pennies instead. Actually, it
turns out it was zinc-coated steel.
Wikipedia tells us that the steel cent is the only coinage that can be picked up with a magnet. Not exactly a requirement for a good money. It is also the only coin in circulation that didn’t contain any copper. Even gold coins had a little copper back in the day.
Now the country is engaged in wars around the world and here at home: the war on terror, the war in Afghanistan, the war on drugs, the war on obesity. The government is constantly at war. As you might expect, valuable resources are needed, and the integrity of the coinage must be sacrificed just as it was for WWII.
To solve this problem, Congressman Steve Stivers (R-Ohio) introduced H.B. 1719 — the “Cents and Sensibility Act” — on April 24. It mandates that pennies, nickels, dimes, and quarters be composed primarily of steel, specifically U.S.-produced steel. By the way, this is the third time Congressman Stivers has pitched this legislation, and as GoldSilver.com reports, “Conveniently, Worthington Industries, a steel processor that supplies steel blanks for Canadian currency, is located in Stivers’ district and strongly supports the bill.”
We can only be thankful that a plastic button fabricator doesn’t operate in the good congressman’s district.
This sort of thing isn’t new. Kings used to “clip” and “sweat” coins constantly to pad the government treasury. Coins would be called in and filed around the edges, with the resulting loose metal coined into new currency for the government to spend. This practice has gone the way of the buggy whip, with the Federal Reserve conjuring up billions from the ether with the ease of a keystroke.
When you think about it, government would like to get out of the production of coinage altogether. The government is interested in earning what’s known as seigniorage — the difference between the value of money and the cost to produce it. It’s estimated that the cost of producing a $100 bill is 8-12 cents: Now that’s some seigniorage.
On the other hand, the government actually loses money creating pennies and nickels. According to GoldSilver.com, “As of May 8, a penny contains one-half cent worth of metal; nickels contain 4.6 cents. Factoring in production costs, the U.S. Mint reported that a penny cost 2 cents and a nickel cost 10 cents to manufacture in 2012.”
Sheesh, government manages to lose money while making money!
So while Stivers has failed before with his steel currency
bill, its time may have come. Washington is swimming in red ink, and
according to the House Financial Services Committee, the government
would save up to $433 million over a decade by switching metals.
Besides, carrying around a pocketful of change is as foreign to young
people as reading a paper-and-ink newspaper.
It’s questionable whether the government would save money minting steel pennies, but this might be a step toward getting rid of pennies altogether, an idea that is constantly floated. To completely abandon the lowest denomination of currency is the ultimate surrender to inflation.
According
to the folks at RetireThePenny.org, the average American wastes 2.4
hours a year handling pennies. This includes “the ubiquitous 30-second
period we sometimes spend waiting for someone who just has to
dig through their pockets or purse to find that last cent so they can
pay for something with exact change (probably so they don’t get stuck
with any more pennies),” writes Susan Headley at About.com.
David Owen wrote for The New Yorker back in March 2008, “More than a few people, upon finding pennies in their pockets at the end of the day, simply throw them away, and many don’t bother to pick them up anymore when they see them lying on the ground. (Breaking stride to pick up a penny, if it takes more than 6.15 seconds, pays less than the federal minimum wage.)”
The minimum wage was $5.85 in some states when the article was published. Now it’s even less worthwhile stopping for a penny with the minimum at $7.25 and more in many states. However, if the penny was minted from 1909-1982, its current melt value is 2.1 cents, so it would be worthwhile to pick up the penny. However, what are the odds that a random penny will be pre-’82?
Just like with the silver dollar, the silver certificate, silver dimes, and copper pennies, eventually Mr. Stivers (or another public servant) will have his way. Then zinc, nickel, and copper will be gone from all coinage. And when that happens, there will be an interesting, and unintended, consequence.
Government has been degrading money for centuries. It will not stop anytime soon. But hopefully, you have enough saved to help keep ahead of the government’s money machine.
Wikipedia tells us that the steel cent is the only coinage that can be picked up with a magnet. Not exactly a requirement for a good money. It is also the only coin in circulation that didn’t contain any copper. Even gold coins had a little copper back in the day.
Now the country is engaged in wars around the world and here at home: the war on terror, the war in Afghanistan, the war on drugs, the war on obesity. The government is constantly at war. As you might expect, valuable resources are needed, and the integrity of the coinage must be sacrificed just as it was for WWII.
To solve this problem, Congressman Steve Stivers (R-Ohio) introduced H.B. 1719 — the “Cents and Sensibility Act” — on April 24. It mandates that pennies, nickels, dimes, and quarters be composed primarily of steel, specifically U.S.-produced steel. By the way, this is the third time Congressman Stivers has pitched this legislation, and as GoldSilver.com reports, “Conveniently, Worthington Industries, a steel processor that supplies steel blanks for Canadian currency, is located in Stivers’ district and strongly supports the bill.”
We can only be thankful that a plastic button fabricator doesn’t operate in the good congressman’s district.
This sort of thing isn’t new. Kings used to “clip” and “sweat” coins constantly to pad the government treasury. Coins would be called in and filed around the edges, with the resulting loose metal coined into new currency for the government to spend. This practice has gone the way of the buggy whip, with the Federal Reserve conjuring up billions from the ether with the ease of a keystroke.
When you think about it, government would like to get out of the production of coinage altogether. The government is interested in earning what’s known as seigniorage — the difference between the value of money and the cost to produce it. It’s estimated that the cost of producing a $100 bill is 8-12 cents: Now that’s some seigniorage.
On the other hand, the government actually loses money creating pennies and nickels. According to GoldSilver.com, “As of May 8, a penny contains one-half cent worth of metal; nickels contain 4.6 cents. Factoring in production costs, the U.S. Mint reported that a penny cost 2 cents and a nickel cost 10 cents to manufacture in 2012.”
Sheesh, government manages to lose money while making money!
We will NOT share your email address
It’s questionable whether the government would save money minting steel pennies, but this might be a step toward getting rid of pennies altogether, an idea that is constantly floated. To completely abandon the lowest denomination of currency is the ultimate surrender to inflation.
David Owen wrote for The New Yorker back in March 2008, “More than a few people, upon finding pennies in their pockets at the end of the day, simply throw them away, and many don’t bother to pick them up anymore when they see them lying on the ground. (Breaking stride to pick up a penny, if it takes more than 6.15 seconds, pays less than the federal minimum wage.)”
The minimum wage was $5.85 in some states when the article was published. Now it’s even less worthwhile stopping for a penny with the minimum at $7.25 and more in many states. However, if the penny was minted from 1909-1982, its current melt value is 2.1 cents, so it would be worthwhile to pick up the penny. However, what are the odds that a random penny will be pre-’82?
Just like with the silver dollar, the silver certificate, silver dimes, and copper pennies, eventually Mr. Stivers (or another public servant) will have his way. Then zinc, nickel, and copper will be gone from all coinage. And when that happens, there will be an interesting, and unintended, consequence.
Government has been degrading money for centuries. It will not stop anytime soon. But hopefully, you have enough saved to help keep ahead of the government’s money machine.
STOCKS TEND TO GO VERTICAL AT THE WORST TIMES: 1999, 2007, 2013 – ALL HAVE THE SAME SYMPTOMS. EXTREMELY HIGH SHILLER PE, NO EARNINGS GROWTH, FLAGGING ECONOMY…
The US Economic Data Performance Is The Equal Worst (With Japan) Of All Major Economic Nations And Regions
We continue to hear that the US is the cleanest dirty shirt or that the US economy is doing ‘relatively’ well as a reason for buying stocks now. Not only is this plainly incorrect (as we have pointed out rather vociferously in the recent past) it flies the face of the disconnect between macro and markets. The fact of the matter is that year-to-date, the US economic data performance is the equal worst (with Japan) of all major economic nations and regions. That is a bucket-load of hope for the second-half of the year – or, as we noted recently, is it just plain silly.
Year-to-Date move in Citigroup’s Macro Surprise Indicators…
http://www.zerohedge.com/news/2013-05-20/guess-who-dirtiest-dirty-shirt
WTF Chart Of The Day: “It’s All About The Earnings”
it would appear the ‘mother’s milk’ is souring…
(h/t @Not_Jim_Cramer)
and furthermore, since September 2011 earnings have been stagnant - when a multitude of indicators (macro and market) began to decouple from stocks,
http://www.zerohedge.com/news/2013-05-20/wtf-chart-day-its-all-about-earnings
European Stocks Hit Post-Crisis Highs
http://www.thedailybeast.com/cheats/2013/03/06/european-stocks-hit-post-crisis-highs.html
Counterparties: Europe’s longest recession
http://blogs.reuters.com/felix-salmon/2013/05/15/counterparties-europes-longest-recession/
BofA: A ‘New Berlin Wall’ Has Been Erected In Europe
European stocks firm despite recession gloom
http://www.france24.com/en/20130515-european-stocks-firm-despite-recession-gloom
Italy’s industrial output falls back to 1970s
Italy’s president Giorgio Napolitano has called for immediate measures to combat a “dramatic crisis” after the country’s industrial output fell back to levels reached in 1979.
http://www.telegraph.co.uk/finance/financialcrisis/10069752/Italys-industrial-output-falls-back-to-1970s.html
Economic And Employment Composites Indicate Further Weakness
The economy is amazing right now – employment is recovering… In this past weekend’s newsletter I went into significant detail in dismantling the bullish arguments with one point being the consistent weakness in the economic data.
http://goldsilver.com/news/economic-and-employment-composites-indicate-further-weakness/
Ceiling suspended – US takes on $300bn in new debt after hitting $16.7 trillion
Citing ‘extraordinary measures’, America’s ticking debt bomb has been reset. Washington has suspended the debt ceiling, setting a date, & not a concrete dollar sum as a deadline, an unprecedented first in US history.
http://rt.com/business/us-debt-ceiling-suspended–510/
We continue to hear that the US is the cleanest dirty shirt or that the US economy is doing ‘relatively’ well as a reason for buying stocks now. Not only is this plainly incorrect (as we have pointed out rather vociferously in the recent past) it flies the face of the disconnect between macro and markets. The fact of the matter is that year-to-date, the US economic data performance is the equal worst (with Japan) of all major economic nations and regions. That is a bucket-load of hope for the second-half of the year – or, as we noted recently, is it just plain silly.
Year-to-Date move in Citigroup’s Macro Surprise Indicators…
http://www.zerohedge.com/news/2013-05-20/guess-who-dirtiest-dirty-shirt
WTF Chart Of The Day: “It’s All About The Earnings”
it would appear the ‘mother’s milk’ is souring…
(h/t @Not_Jim_Cramer)
and furthermore, since September 2011 earnings have been stagnant - when a multitude of indicators (macro and market) began to decouple from stocks,
http://www.zerohedge.com/news/2013-05-20/wtf-chart-day-its-all-about-earnings
European Stocks Hit Post-Crisis Highs
http://www.thedailybeast.com/cheats/2013/03/06/european-stocks-hit-post-crisis-highs.html
Counterparties: Europe’s longest recession
http://blogs.reuters.com/felix-salmon/2013/05/15/counterparties-europes-longest-recession/
BofA: A ‘New Berlin Wall’ Has Been Erected In Europe
There’s one in the US, too.
Michael Hartnett, Bank of America Merrill Lynch‘s Chief Investment Strategist, recently published a report loaded with unconventional charts intended to communicate how the world is changing.
In a slide titled “The new Berlin Wall,” Hartnett presented this chart showing how German bond and stock prices have surged as the young people in Portugal, Italy, Greece, and Spain have suffered.
Read more: http://www.businessinsider.com/baml-new-berlin-wall-in-europe-2013-5#ixzz2Tu2y2dvf
Michael Hartnett, Bank of America Merrill Lynch‘s Chief Investment Strategist, recently published a report loaded with unconventional charts intended to communicate how the world is changing.
In a slide titled “The new Berlin Wall,” Hartnett presented this chart showing how German bond and stock prices have surged as the young people in Portugal, Italy, Greece, and Spain have suffered.
Read more: http://www.businessinsider.com/baml-new-berlin-wall-in-europe-2013-5#ixzz2Tu2y2dvf
http://www.france24.com/en/20130515-european-stocks-firm-despite-recession-gloom
Italy’s industrial output falls back to 1970s
Italy’s president Giorgio Napolitano has called for immediate measures to combat a “dramatic crisis” after the country’s industrial output fell back to levels reached in 1979.
http://www.telegraph.co.uk/finance/financialcrisis/10069752/Italys-industrial-output-falls-back-to-1970s.html
Economic And Employment Composites Indicate Further Weakness
The economy is amazing right now – employment is recovering… In this past weekend’s newsletter I went into significant detail in dismantling the bullish arguments with one point being the consistent weakness in the economic data.
http://goldsilver.com/news/economic-and-employment-composites-indicate-further-weakness/
Ceiling suspended – US takes on $300bn in new debt after hitting $16.7 trillion
Citing ‘extraordinary measures’, America’s ticking debt bomb has been reset. Washington has suspended the debt ceiling, setting a date, & not a concrete dollar sum as a deadline, an unprecedented first in US history.
http://rt.com/business/us-debt-ceiling-suspended–510/
Are Treasurys Falling Out of Favor With China?
Reports that China may step up the diversification of its huge
foreign exchange reserves is not great news for U.S. Treasurys, already
under pressure from talk about an easing in the Fed’s bond-buying
program.
http://www.cnbc.com/id/100752563
Headlines:
BOJ may seek ways to calm bond market, policy on hold
Jobless ‘outnumber workers in some British neighbourhoods’
Gold Bear Bets Reach Record as Soros Cuts Holdings
Spanish debt at record high
World’s Biggest Volatility Jump Spurs Fund Outflow: Japan Credit
Junk Stocks Spur Broadest Equity Advance Since 1995
Rules meant to prevent Anadarko’s ‘flash crash’ didn’t kick in: The Tell
http://www.cnbc.com/id/100752563
Headlines:
BOJ may seek ways to calm bond market, policy on hold
Jobless ‘outnumber workers in some British neighbourhoods’
Gold Bear Bets Reach Record as Soros Cuts Holdings
Spanish debt at record high
World’s Biggest Volatility Jump Spurs Fund Outflow: Japan Credit
Junk Stocks Spur Broadest Equity Advance Since 1995
Rules meant to prevent Anadarko’s ‘flash crash’ didn’t kick in: The Tell
Recovery fantasy fades, oil breaks out, potential bottom in gold & silver
from SchiffReport:
WARNING from BIS and IMF: Loose Central Bank
Policies Looking Increasingly DANGEROUS!!! Risks Include Greater
Risk-Taking Behavior, Delayed Reforms and Potentially Volatile Capital
Flows!!
http://investmentwatchblog.com/warning-from-bis-and-imf-loose-central-bank-policies-looking-increasingly-dangerous/
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