Category: Global Financial System
The analysis published under this category are as follows.
Friday, June 12, 2015
The Banking Game Exposed - Fast-tracking TiSA: Stealth Block to Monetary Reform / Stock-Markets / Global Financial System
By: Ellen_Brown
It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. — Attributed to Henry Ford
In March 2014, the Bank of England let the cat out of the bag: money is just an IOU, and the banks are rolling in it. So wrote David Graeber in The Guardian the same month, referring to a BOE paper called “Money Creation in the Modern Economy.” The paper stated outright that most common assumptions of how banking works are simply wrong. The result, said Graeber, was to throw the entire theoretical basis for austerity out of the window.
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Monday, June 01, 2015
Dangerous Debt Trend And What It Could Do to Your Wealth / Interest-Rates / Global Financial System
By: Investment_U
Andrew Snyder writes: It is a fascinating trend - something every investor must be aware of. It’s yet another reason interest rates are likely to stay lower for far longer than most folks ever expected.
If rates rise, after all, countless governments are in big trouble.
Everywhere we look, return-desperate investors are turning to the debt market and its virtually free money. It’s one thing when companies use borrowed money to buy their own shares. It’s a victimless crime.
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Wednesday, May 20, 2015
Will Interest Rates Ever Rise? / Interest-Rates / Global Financial System
By: BATR
Wrapped in a worldwide currency depression, the intentional zero interest rate strategy has fostered great damage to the practice of saving. Nevertheless, not everyone believes or blames central banksters for enacting a deliberate policy. Reporting on one such denier is UK columnist Jeremy Warner. He writes in the Telegraph article, When will interest rates rise? The way things are going, maybe never.
Monday, May 18, 2015
Interest Rates Spiking Everywhere / Interest-Rates / Global Financial System
By: John_Rubino
Just as ultra-low interest rates start to seem normal, the markets decide otherwise. US 10-year Treasury bonds yielded about 1.9% in April and are now above 2.20%:
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Tuesday, May 05, 2015
The Collapse of Cash / Interest-Rates / Global Financial System
By: Michael_Pento
Despite all of the central bank manipulations over the past seven years, it is finally becoming clear economies will not be able to achieve escape velocity. The U.S. central bank has the longest track record of treading down the path of monetary manipulations. And has achieved anemic average annual growth of 2.2% since 2010. Therefore, to further demonstrate the failure of money printing to engender economic growth, the dismal Q1 GDP read of just 0.2 % displays the failure of this policy once again. Wall Street Shills have been quick to once again blame snow in the winter for the Q1 miss. However, it is becoming evident that Q2 will not produce any such anticipated rebound.
Thursday, April 23, 2015
Distorted Financial System Expect Deflation, Inflation And Hyperinflation / Stock-Markets / Global Financial System
By: GoldSilverWorlds
Which ‘flation will it be? Deflation or inflation or both? Looking at the BIG PICTURE …
CRB: Deflationary pressures are clearly seen in commodities prices, which are currently at 2009 levels, at the depth of the collapse, as evidenced by the CRB (a proxy for commodities).
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Thursday, April 09, 2015
U.S. Hegemony and Dollar Threatened By New Chinese Bank / Stock-Markets / Global Financial System
By: GoldCore
- Chinese Success in Attracting Major Western Countries to New Bank Marks Beginning of New Era
- Diverse members include UK, Israel, Germany, Australia and Russia and Iran
- Demonstrates the degree to which U.S. global influence is declining
- U.S. needs to reform its approach to IMF and World Bank system if it to successfully reassert its influence
- U.S. “Failure of Strategy and Tactics was a Long Time Coming”
- Beijing’s challenge to post-World War II financial and monetary order
- New bank shows continuing decline of U.S. hegemony and dollar as reserve currency
Monday, April 06, 2015
Portrait of the Classical Gold Standard / Economics / Global Financial System
By: MISES
Marcia Christoff-Kurapovna writes: "The world that disappeared in 1914 appeared, in retrospect, something like our picture of Paradise," wrote the economist Cecil Hirsch in his June 1934 review of R.W. Hawtrey’s classic, The Art of Central Banking (1933). Hirsch bemoaned the loss of the far-sighted restraint that had once prevailed among the "bankers' banks" of the West, concluding that modern times "had failed to attain the standard of wisdom and foresight that prevailed in the 19th century."
Wednesday, April 01, 2015
Iceland Ponders Radical Banking Plan to Eliminate Fractional Reserve Lending / Interest-Rates / Global Financial System
By: Mike_Shedlock
I have long railed against fractional reserve lending, duration mismatches (e.g. banks issuing 2-year CDs and lending money for 15-year mortgages), bank's ability to lend money into existence, and deposit insurance.
Fractional reserve lending allows banks to lend out a near infinite amount of credit with essentially no backing. Money inevitable creates asset bubbles, but as long as the bubbles are expanding it appears the system is solvent.
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Tuesday, March 31, 2015
U.S. Isolated in Opposition to Chinese Bank / Politics / Global Financial System
By: John_Browne
Over the past few decades while the economic power of the Chinese has grown exponentially, many observers have been surprised by the relative willingness of China to operate within the financial and economic framework established by the dominant Western order. But it should now be blatantly clear that Beijing prefers to act slowly, deliberately and quietly to advance its agenda. This is the case with the establishment of the Asian Infrastructure Investment Bank (AIIB), a Chinese-led lending institution which could emerge as an international rival to the World Bank and the International Monetary Fund. Such an institution could support Beijing's political interests by controlling the flow of infrastructure financing that is vital for developing economies. As we all know, money can often buy loyalty.
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Monday, March 16, 2015
Margin Call from Hell - Why Strong Dollar Leads to Deflation, Recession and Crisis / Politics / Global Financial System
By: Mike_Whitney
The crisis that began seven years ago with easy lending and subprime mortgages, has entered its final phase, a currency war between the world’s leading economies each employing the same accommodative monetary policies that have intensified market volatility, increased deflationary pressures, and set the stage for another tumultuous crack-up. The rising dollar, which has soared to a twelve year high against the euro, has sent US stock indices plunging as investors expect leaner corporate earnings, tighter credit, and weaker exports in the year ahead. The stronger buck is also wreaking havoc on emerging markets that are on the hook for $5.7 trillion in dollar-backed liabilities. While most of this debt is held by the private sector in the form of corporate bonds, the stronger dollar means that debt servicing will increase, defaults will spike, and capital flight will accelerate. Author’s Michele Brand and Remy Herrera summed it up in a recent article on Counterpunch titled “Dollar Imperialism, 2015 edition”. Here’s an excerpt from the article:
Wednesday, February 25, 2015
Lowest Interest Rates For 3000 Years! / Interest-Rates / Global Financial System
By: John_Rubino
Business Insider's Myles Udland just posted a chart, drawn from research by the Bank of England, showing interest rates for the past 3,000 years. And for all those who've been feeling like today's "new normal" is actually profoundly abnormal, here's your proof. It turns out that interest rates, both long and short-term, are lower than they've ever been. Not lower than in this cycle, or post-war or in the past century, but ever, going back to the earliest days of markets.
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Monday, January 26, 2015
How Global Interest Rates Deceive Markets / Interest-Rates / Global Financial System
By: John_Mauldin
“You keep on using that word. I do not think it means what you think it means.”
– Inigo Montoya, The Princess Bride
“In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.
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Wednesday, December 03, 2014
Lower Interest Rates Forecast for 2015 / Interest-Rates / Global Financial System
By: DailyWealth
Steve Sjuggerud writes: "It seems to me almost unthinkable that U.S. interest rates could rise in any meaningful way," Jeff Gundlach said on CNBC last week.
Jeff Gundlach is "The New Bond King" according to Forbes.
To be crowned King of the bond world, you must know interest rates better than anyone else on the planet. Gundlach has earned his place.
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Saturday, November 22, 2014
Global Economies Will Dictate Interest Rate Hike Timing / Interest-Rates / Global Financial System
By: Sy_Harding
The Federal Reserve spent this year winding down its $85 billion a month QE stimulus program. With that task completed, the hot topic of analysts, and concern of markets, is how soon the Fed will take the next step in moving back toward normal monetary policies. That is, when will it begin raising interest rates from the current near-zero levels back toward normal?
Monday, September 29, 2014
The End of Monetary Policy / Politics / Global Financial System
By: John_Mauldin
We are the hollow men
We are the stuffed men
Leaning together
Headpiece filled with straw. Alas!
Our dried voices, when
We whisper together
Are quiet and meaningless
As wind in dry grass
Or rats’ feet over broken glass
In our dry cellar…
This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang but a whimper.
– T. S. Eliot, “The Hollow Men”
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Monday, September 08, 2014
As ISDAFIX Becomes Next LIBOR, Can GOFO Manage To Avoid The Spotlight? / Interest-Rates / Global Financial System
By: GoldCore
In the wake of the recent LIBOR benchmark interest rate rigging scandal and successful prosecution of a number of global investment banks for participating in LIBOR manipulation, a new interest rate rigging scandal is gathering steam.
Allegations surfaced last year that ISDAFIX, a similar global interest rate benchmark, had been rigged by a group of global banks, and these allegations are under investigation by a number of regulators including the US CFTC and the UK FCA. While the regulators have not provided any feedback as of yet, the class action suits by impacted investors are now beginning.
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Wednesday, August 13, 2014
Interest Rate Policy Global Divergence - Really? / Interest-Rates / Global Financial System
By: Axel_Merk
If you own dollars, the euro or gold, you might want to pay attention to this one.
What could possibly be wrong with conventional wisdom? It shouldn't be a surprise that pundits merely regurgitate what others say. But why would Draghi join the fray? It turns out, he has a vested interest in the 'policy divergence' view, as promoting it might help to weaken the euro. If indeed the U.S. interest rate path is upward, while rates in the Eurozone stay lower for longer, it might justify a weaker euro.
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Wednesday, August 06, 2014
Confusing Capitalism with Fractional Reserve Banking / Interest-Rates / Global Financial System
By: Frank_Hollenbeck
Today, capitalism is blamed for our current disastrous economic and financial situation and a history of incessant booms and busts. Support for capitalism is eroding worldwide. In a recent global poll, 25 percent (up 2 percent from 2009) of respondents viewed free enterprise as “fatally flawed and needs to be replaced.” The number of Spaniards who hold this view increased from 29 percent in 2009 to 42 percent, the highest amongst those polled. In Indonesia, the percentage went from 17 percent to 32 percent.
Wednesday, July 09, 2014
Impact of IMF SDRs on Commercial Trade / Politics / Global Financial System
By: BATR
The global corporatist economy works differently from business transactions at your neighborhood convenience store. Ostensibly, the International Monetary Fund was set up to allow the G20 nations to umpire the ground rules to play nice in macro trade. Platitudes about promoting job growth or third world development are the realm of public relations for the central banks. The impact of the IMF on virtually all countries, vividly seen in every crisis whether real or contrived, always has a political objective that underpins the economic functions. As confidence in national currencies falter, the big sugar daddy loves to intervene, provided they pull the strings.