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Listen to Eric Sprott share his views on on today’s release of economic data, BitGold’s recent merger with Gold Money, the lending of more funds to Greece by the European Central Bank, and the smash in gold this morning.
moment, volatility in the government bond market continues to be a huge theme
in the market and one that investors need to consider and address.
Whatever the initial causes of the adjustment in relative and absolute yield
curves and there are plenty of potential culprits – Federal Reserve rate
expectations, European Central Bank quantitative easing, inflation
forecasts etc. – the subsequent severe volatility has been without doubt
exacerbated by the lack of liquidity.
is particularly worrying is that this lack of liquidity is occurring in global
government bond markets, which are deemed to be the
most-liquid fixed-income sectors. To highlight this issue, Bloomberg
reported that on ICAP's BrokerTec platform's (an electronic trading system for
FI markets) April volumes fell 14 per cent from a year ago and were the lowest
in six years.Read More.
Sooner or later the bond market will run
out of bigger fools as inflation is much higher than reported by governments
while investors are losing principal with negative real returns. In essence we
are seeing a global debasement of all currencies under present policies.
When the bonds crash they will bring down the markets too. Time has come to
unload those highflyers that have no earning because they can drop like a stone
from dollars to pennies, all in the blink of young girl's eyes.
What Is About To Crash - The Markets, The Economy? Neither, Even If Greenspan (Who?) Says So!
It's late spring, and the Chicken Littles are back. They don't fly but they do cluck. Ever since the US economy again showed barely any growth for the first quarter of the year, and even before, there was no end to the nay-saying commentators that jumped to cable TV attention by declaring that finally, after five straight springs of false predictions of trading or commercial collapse due to this or that - this was going to be the year that everything finally falls apart, like the Titanic after it came upon the iceberg!
Indeed, the metaphor of "chickens coming home to roost" - mostly in terms of the US Federal Reserve's "highly accommodative" monetary policy - was a common theme. Ignoring the strong economic growth in the second and third quarters of 2014 (4.6% and 5%), the strongest back-to- back quarters since 2003 with a respectable 2.2% in the fourth quarter, the Wall Street Journal and a commentator for The Hill proclaimed it was time for the Fed to acknowledge that its policy of low interest rates had not worked to stimulate the economy, even though it had repressed inflation to below the 2% target. To its critics, the Fed has failed to promote economic growth, even though three million net new jobs have been produced in the last 12 months, because productivity measures remain slack and wage growth remains subdued. Read More
HSBC chief economist Stephen King is already thinking about the next recession.
In a note to clients Wednesday, he warns: "The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers."
Here's King (emphasis added):
Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery — both in the US and elsewhere — has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the US Fed funds rate has fallen by a minimum of 5 percentage points. That kind of traditional stimulus is now completely ruled out. Read More
Remember When? ... Once More...
Platinum Wealth Partners - Top Investors Edge
Since 2008, we have been warning so-called global industry captains that their is a HUGE economic iceberg in our path .Now the HSBC Titanic "does not" think that we if just re-arrange the deck chairs we can avoid its certain fate. For sure, the band plays on - "Once more... " International Offices May 18, 2015
Listen to Eric Sprott shares his views on the status of the economy, volatility in the bond markets, the launch of BitGold this week, Indian gold demand, and movement in the precious metals market. Tune-in to the Weekly Wrap Up http://www.sprottmoney.com/sprott-money-weekly-wrap-up
The American Dream is a myth, says Nobel-prize winner
It has become increasingly difficult forAmericans to climb the economic ladder, says Joseph Stiglitz, a Nobel-prize winning economist.
The U.S. has one of the highest levels of income inequality among its peers and is among the worst in offering equal opportunitiesfor advancement, said Stiglitz, who spoke Tuesday in New York City. Whether an American gets ahead is also more dependent on the income and education of their parents, he said.Read More.