Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Thursday, January 13, 2011
Understanding the Federal Reserve Bank / Interest-Rates / Central Banks
By: EWI
Despite so much focus on the policies of the Fed, its operations remain somewhat of a mystery to most investors -- in no smaller measure, due to their complexity.
So, we put together a free resource for our Club EWI members: a 35-page report that explains the Fed, its goals and, very importantly, its limitations in layman's terms.
Thursday, January 13, 2011
Full Spectrum Dominance, The Pathology of U.S. and Global Monetary Policy / Interest-Rates / Credit Crisis 2011
By: Rob_Kirby
The purpose of this paper is to demonstrate how the Federal Reserve – through its proxy money centre banks – has taken complete control of the interest rate complex enabling them to arbitrarily price capital at or near zero. This has only been possible with accommodation of the ruling elite who mutually benefit from these policies.
Thursday, January 13, 2011
Federal Government Budget - Latest Numbers and Tally of Stimulus Package / Interest-Rates / US Debt
By: Asha_Bangalore
The cumulative budget deficit of the federal government for the twelve months ended December 2010 stood at $1.277 trillion, down from a high of $1.478 trillion in the twelve months ended February 2010.
Wednesday, January 12, 2011
Federal Debt of the United States - Q and A (Part II) / Interest-Rates / US Debt
By: Asha_Bangalore
[Part I, question 1-3] published on Jan 11, 2011.
4. Will Congress entertain not raising the statutory debt limit?
Congress will increase the statutory debt limit prior to the deadline. There is not even an inkling of doubt about this eventuality. But, unfavorable posturing by politicians, prior to taking the appropriate action, is nearly certain and tentative market concern will prevail. The terms of the deal the Republicans will strike to raise the debt limit is the source of uncertainty not whether they will raise the borrowing limit. The Treasury Department estimates that the national debt will hit the statutory limit between March 31 and May 16. In the meanwhile, Treasury Secretary Geithner has indicated that the Treasury could take "exceptional actions" to delay the deadline by suspending the sale of state and local government securities, which would buy time for a few weeks.
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Wednesday, January 12, 2011
Federal Debt of the United States - Q and A (Part I) / Interest-Rates / US Debt
By: Asha_Bangalore
We have encountered questions about debt of the United States in the past few weeks and thought a Q and A about debt would be handy. This is the first of two installments of noteworthy highlights about federal debt.
Tuesday, January 11, 2011
Synonymous Terms for Quantitative Easing / Interest-Rates / Quantitative Easing
By: Richard_Daughty
I was having a leisurely breakfast with the family when I read where Philipp Bagus, writing at Mises Daily newsletter, quotes James Bullard, president of the St. Louis Federal Reserve Bank, as saying, "it's important to defend inflation from the low side as we would on the high side."
Tuesday, January 11, 2011
Spot The Debt Bubbles, Ruling Elite Bankers Bankrupting Entire Nations / Interest-Rates / Global Debt Crisis
By: Puru_Saxena
BIG PICTURE – Let the truth be known, the world is being held hostage by powerful bankers. Thanks to the fiat-money fractional reserve system, bankers have become the ruling elite and as a result, entire nations are going bust.
Monday, January 10, 2011
Geithner Says the US Government Is Bankrupt / Interest-Rates / US Debt
By: Michael_S_Rozeff
The U.S. government is insolvent. Who says so? Timothy F. Geithner, the U.S. Secretary of the Treasury.
Geithner sent a letter to Congress on Jan. 6, 2011 asking for the debt limit to be raised. If it is not raised, he warned, the U.S. will default on its debt. In his words:
Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States."
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Monday, January 10, 2011
Brazil Accuses US, China of Currency Manipulation, Looming Trade War / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
Here are a few of the many stories I am following: The risk of trade wars escalates as Brazil accuses the United States and China of currency manipulation. In turn, the IMF is upset at Brazil for imposing capital controls. In Belgium, the king wants to end the "unprecedented hell" that has left Belgium without a government for 211 days smack in the midst of a budget crisis. China is set for multiple rounds of credit tightening even though China's growth is weakening. Interest rates in Portugal and Spain suggest more bailouts coming up. Ireland is pondering the Iceland Solution and that has the IMF more than a bit upset.
Sunday, January 09, 2011
Italy The Invisible Elephant in Europe's Escalating Sovereign Debt Crisis / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
In regards to the escalating sovereign debt crisis in Europe, most eyes have been focused on Greece, Ireland, Spain, and Portugal, the so-called PIGS.
Saturday, January 08, 2011
Reckless U.S. Deficit Spending May Reap Inflation Whirlwind / Interest-Rates / US Debt
By: Jeb_Handwerger
Bill Gross, the PIMCO Money Manager, to whom it is often worth listening, cautioned this week that our nations leaders really do not know where they are going. They are mired in the fiscal quicksands of perpetual trillion dollar deficits. I believe as he does that there will be more agony ahead after the present euphoria in the equity markets. Thus I say, “Caveat Emptor-Let the Buyer Beware!” Our leaders are paying scant attention to the “Buck” that is being passed on to our children who are going to be stuck with the bills that we are dumping on them. Today I do not see anybody around to weep for our infants. As the reporter covering the burning of the Hindenburg shouted in horror, “O the humanity!”
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Saturday, January 08, 2011
Meaningful Base for U.S. Treasuries / Interest-Rates / US Bonds
By: Mike_Paulenoff
Let's take an updated look at the bond market via the iShares Barclays 20+ Year Treas Bond ETF (NYSE: TLT). After all of the fireworks from Wed's ADP forecast for additions to payrolls of nearly 300,000 into this morning's disappointing payrolls data reported by the Governement, we find the TLT's over $1.00 off of its recent low of 91.03 in what looks like the makings of a secondary low within a base-like pattern the started at the Dec 15 low of 90.47.
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Thursday, January 06, 2011
Spanish and Portuguese Bonds Hit Hard on Sovereign Debt Financing Concerns / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
Portuguese and Spanish 10-year bonds are getting smacked hard as refinancing needs mount. Greek yields are at all-time highs and a milder (for now) selloff continues on Belgian and Italian bonds as well. A flight to safety on German bonds is again in play, with German 10-year yields dropping slightly. The Euro once again flirts with December and Mid-September lows.
Thursday, January 06, 2011
A Day in the Life of the National Debt / Interest-Rates / US Debt
By: Richard_Daughty
As an example of the kind of sheer monetary insanity that is happening all around us and that is going to destroy the United States of America, and probably most of the world, too, the national debt of the United States of America hit a new, all-time record: An astonishing $14,025,215,218,708.52, which can be more conveniently referred to as $14.025 trillion, and which works out to a debt of $140,252.00 for every non-government worker in the Whole Freaking Country (WFC), the interest on which (at 5%) is $7,012.60 for each of those selfsame non-government workers. Per year!
Thursday, January 06, 2011
Life without the Fed: The Suffolk System / Interest-Rates / Central Banks
By: MISES
CJ Maloney writes: Suppose for a moment that Republican Congressman Ron Paul's fondest wish came true, and the Federal Reserve Bank was not only audited but closed down. As far-fetched as such a notion may seem, it would not be the first time in our nation's history that a central bank has been shuttered. For all the Fed's imposing grandeur, Ben Bernanke is running our third (albeit longest-running) try at a central bank. This country has lived without a central bank before and, if given the chance, could do so again. Most every American (led by Paul Krugman), though, would be horrified at the thought.
Thursday, January 06, 2011
2011: Year of the Yellow Brick Road / Interest-Rates / US Interest Rates
By: Axel_Merk
The Wizard of Oz would be proud of our policy makers: perception may be reality when it comes to investor confidence, even if we live in a fairy tale. However, investors that can afford to build a yellow brick road paved with gold may outshine those who build theirs with magic.
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Thursday, January 06, 2011
Flight to safety does not equal flight to German Bunds Anymore / Interest-Rates / Credit Crisis 2011
By: ECR_Research
Edin Mujagic writes: Mention the words ‘euro area’ and ‘periphery’ and immediately almost everyone will associate that with troubles, strikes, indebted nations and rating downgrades, to name just a few flattering possibilities.
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Thursday, January 06, 2011
Municipal Bond Forecast: Deadbeat States Emerge as Biggest Threat to Muni-Bond Investors / Interest-Rates / US Bonds
By: Money_Morning
Martin Hutchinson writes: The U.S. municipal bond market could be cruising for a bruising.
The same thing goes for muni-bond investors.
The danger is right out in the open for everyone to see. But investors aren't heeding the warnings.
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Thursday, January 06, 2011
EU Commission Plans Haircuts on Euro-zone Bank Debt / Interest-Rates / Credit Crisis 2011
By: Mike_Shedlock
A European commission has come up with a new proposal to shield taxpayers from the banking crisis via haircuts in senior bank bonds. The proposal only covers bank debt, not sovereign government debt, and supposedly it applies to some mythical time in the future, not now.
However, sovereign yields have hit new record highs in Greece, and are close to record highs in Portugal, Spain, and Ireland, I fail to see how the crisis can possibly be contained, and I fail to see why it takes a commission to decide that bank bondholders need a haircut. It should be perfectly obvious there is no other possible solution. The big fear is haircuts spread to sovereign debt.
Wednesday, January 05, 2011
How the Fed Could Become Insolvent / Interest-Rates / Central Banks
By: Casey_Research
Terry Coxon, Editor, The Casey Report writes: You've seen the proof in real time. Once-dominant industrial companies, e.g., General Motors, can run out of money. The biggest banks, e.g., Bank of America, can run out of money. Even sovereign governments, e.g., Greece, can run out of money. Yes, all those organizations are still limping along, but only after being rescued by other giant institutions, such as the U.S. government, the less unhealthy European governments, the European Central Bank, and the International Monetary Fund.