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Bonds & Interest Rates

Monetary Mountain Madness

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Posted by John Mauldin - Mauldin Economics

on Wednesday, 07 September 2016 08:06



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Bonds & Interest Rates

The Next Experiment, Part 1: Japan Prepares To Buy Pretty Much Everything

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Posted by John Rubino - DollarCollapse.com

on Tuesday, 30 August 2016 07:40

For most of the world, the past decade’s monetary and fiscal experiments are viewed as failures. See, for instance, French support for the EU project crumbling on both left and rightand Why were smart people suckered by Abenomics? 

So what do the best and brightest now running global economic policy do when their experiments don’t work? Apparently they double down, repeating the experiment with an even bigger dose. In Japan:

BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says
(Bloomberg) – The Bank of Japan could announce a “massive stimulus program” as the nation seeks to reach a 2 percent inflation target, according to UBS Wealth Management.

“It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,” said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. “They could announce a massive stimulus program both on the monetary and fiscal side or they could end up reducing their inflation targets. Right now, it looks like they are going to use more stimulus. ”

Governor Haruhiko Kuroda said over the weekend in the U.S. that the central bank won’t hesitate to boost monetary stimulus if needed, and there is ample space for additional easing. He also said at the Federal Reserve’s annual policy retreat in Jackson Hole, Wyoming, that the central bank will carefully consider how to best use policy to achieve its price stability target.

Consumer prices excluding fresh food — the BOJ’s benchmark inflation gauge — fell 0.5 percent in July from a year earlier, government data earlier this month showed. That was the steepest drop since March 2013, the month before Kuroda launched unprecedented stimulus. 

Japan-central-bank-failure-Aug-16

Benchmark 10-year JGB yields reached a record low of minus 0.3 percent last month before rising to minus 0.07 percent Monday in Tokyo. The BOJ refrained from increasing bond purchases or cutting negative interest rates further in July.

Central Bank Jeopardy



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Bonds & Interest Rates

The Precious Metals Sector and the Fed. . .

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Posted by Clive Maund

on Monday, 29 August 2016 07:19

Technical analyst Clive Maund reflects on how Federal Reserve statements may affect markets, and explains why he thinks the precious metals markets are due for a correction.

Metals and fed cover
Chart courtesy of www.sentimentrader.com

While the Fed is almost powerless these days, as it has succeeded in "painting itself into a corner," the markets still seem to think that its utterances are important and react, sometimes violently, to its apparent stance, or implied stance. For this reason we have to treat Fed statements as important, even though they really aren't. Today we have the Fed making pronouncements and the markets can be expected to gyrate around and react as usual.

In general they are not expected to "rock the boat." Powerful vested interests—what may be described as the status quo—want Hillary Clinton as the next President, as she will serve as their marionette and do their bidding. Trump can talk a lot, but even if he gets in won’t make much difference for two reasons. One is that he is the candidate for the Republican Party, and the same plutocrats control the Republican Party that control the Democrats—they are two sides of the same coin. So if elected Trump will have to buckle down and do as he is told. If he tries to seriously take on the military-industrial complex that runs the U.S. he will end up like JFK. In any event, he has already indicated that he will yield and comply, by talking about "beefing up our great military" and by paying homage to "our great friend in the region (Mid-East) Israel." 

So whoever gets in, the outlook for the ordinary American citizen remains hopeless, despite all the mindless pre-election hype and razzmatazz. Of the two candidates the powerful vested interests, of course, prefer Hillary, so we can expect the Fed to do as little as possible to upset the markets ahead of the elections (i.e., nothing of any consequence). This being so, today's Fed remarks might be greeted with a sigh of relief and spark another up-leg in the broad market, which is now supported by a gigantic slush fund.

Although at first sight it looks like we are being presented with a buying opportunity in the precious metals sector, which has reacted back over the past couple of weeks, we have to careful here. There has been no major correction in this sector all this year, which is inflated after months of rallying, and we will look at some evidence here that the correction may have considerably



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Bonds & Interest Rates

"It's Gone" - Why Foreign Demand For US Treasuries Has Disappeared

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Posted by ZeroHedge

on Tuesday, 23 August 2016 06:01

Last week's TIC data confirmed something the Fed's Treasury custody account has indicated for the past several months: foreign demand for US government bonds has not only tumbled, but there has been aggressive selling.

custody holdings 2 0

....continue readng HERE

related:

The Federal Reserve’s Cycle of Monetary Insanity (and Treason)

 



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Bonds & Interest Rates

The Federal Reserve’s Cycle of Monetary Insanity (and Treason)

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Posted by ZeroHedge

on Thursday, 18 August 2016 08:38

bank

In 2008; the central bankers of the West went berserk with their monetary crimes. Interest rates were driven to near-zero. Money-printing was driven to near-infinity, as represented by the Bernanke Helicopter Drop.

As a condition for engaging in monetary policies which were more insane (i.e. more criminal) than anything ever done in our economies; the central bankers promised an immediate Exit Strategy, in early 2009: thenormalization of interest rates and the normalization of money-printing. Through the middle of 2016; we’re still waiting.

The question, never asked by media drones....continue reading HERE

also:

Don't miss Michael's Mid-Week Update - List of Rapid Technological Changes Here Now!



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