Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.Wednesday, June 08, 2016
Pensions In The UK and EU Going Bankrupt – Slow Motion Detonation of Pensions Timebomb - Video / Interest-Rates / Eurozone Debt Crisis
Pensions in the UK, EU and internationally will go bankrupt as the long awaited ‘pensions time bomb’ detonates in slow motion.
Max Keiser and Stacy Herbert discuss the end of retirement which many Americans, Britons, Europeans and others will suffer as their pensions are decimated in the coming years due to zero percent interest rates and ultra loose monetary policies pursued for the benefit of banks and corporations.
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Tuesday, June 07, 2016
Fed Interest Rate Hikes Lather. Rinse. Repeat / Interest-Rates / US Interest Rates
Stop me if you've heard this one before: A Fed official walks into a bar and says the economy is improving and rate hikes are appropriate. The patrons order another round to celebrate. Then disappointing data comes out, the high fives stop, and the Fed official ducks out the back...only to come back the next day saying the same thing. Anyone who pays even the smallest attention to the financial media has experienced versions of this joke dozens of times. Yet every time the gag gets underway, we raise our glasses and expect the punch line to be different. But it never is. Last week was just the latest re-telling.
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Tuesday, June 07, 2016
Fed's Interest Rate Normalization Will Be Far From Normal / Interest-Rates / US Interest Rates
The Fed traditionally embarks on an interest rate tightening cycle when inflation has started to run hot. This decline in the purchasing power of the dollar will nearly always manifest itself in: above trend nominal GDP, rising long-term interest rates and a positively sloping yield curve. These prevailing conditions are all indications of a market that is battling inflation; and thus prompts the Fed to start playing catch up with the inflation curve.
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Monday, June 06, 2016
U.S. Jobs Report Means Don’t Bank On Interest Rate Hikes! / Interest-Rates / US Interest Rates
This past Friday, June 3rd, 2016, The Bureau of Labor Statistics released their most recent report regarding new employment data and nonfarm payroll employment which indicates that during May of 2016, it was the smallest increase seen in 28 months.
During May of 2016, there were 144,592,000 payroll jobs within the US, which was up by 1.6 percent, or equivalent to 2.3 million jobs, from May of 2015 (These are all not-seasonally-adjusted numbers).
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Thursday, June 02, 2016
Race to the Bottom Gaining Traction: Negative Interest Rates Amplify Currency Wars / Interest-Rates / Currency War
Ability is a poor man's wealth. M. Wren
If you had told individuals before 2009 that we would be living in a negative rate environment in the near future, most would have treated you like a lunatic that just escaped from Ward 12. Fast forward a few years and viola, bankers all over the world are embracing negative rates. China devalued the Yuan once again, adding further fuel to the already blazing fire. The Fed will have no option but to lower rates and then Jump onto the negative rate bandwagon. Don’t listen to the nonsense the Fed has been mouthing for months that all is well. We can already see the all is good slogan breaking down to “it’s not as good as we thought" slogan; this will eventually change to “oh my God it’s darn right ugly out there” and we need to lower rates to prevent a catastrophe slogan.
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Wednesday, June 01, 2016
The $6 TRILLION Corporate Debt Implosion Begins... / Interest-Rates / Corporate Bonds
The corporate bond market is a $6 trillion time bomb waiting to go off.
It took the US half a century to grow its corporate bond market to $3 trillion.
Thanks to the Fed implementing ZIRP and holding rates there for seven years, we’ve doubled the corporate bond market, adding another $3 trillion in corporate debt… since 2009.
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Tuesday, May 31, 2016
10 Questions About our Broken Financial System / Interest-Rates / Financial Crisis 2016
Bonds look like a bubble in search of a pin. What if global bonds are revalued lower to account for the following?
- Probability of repayment in a currency that will maintain its purchasing power for the lifetime of the bond.
- Probability of responsible fiscal management by the governments of the bond issuing countries.
- Probability of repayment without rolling over those bonds by creating EVEN MORE UNPAYABLE
- Actual positive yield.
Sunday, May 29, 2016
“Debt, Not The Economy, Reaches Escape Velocity” With Graham Mehl / Interest-Rates / Credit Crisis 2016
One of the biggest buzz-terms of the falsetto, faux recovery has been ‘escape velocity’. If there are any NASA engineers left, they can correct me, but I believe the term was used in physics or perhaps rocket science to describe the velocity an object must reach to break the hold of the Earth’s gravity. And you think Economics has some formulas? I’d LOVE to see the one for the real escape velocity.
Getting back to the economic version of rocket science (don’t even tell me that isn’t funny), we have been hearing the term for the past several years. Ironically it started with the central banking crowdlthough they never quite told us what exactly the economy had to do to accelerate beyond the grasp of the ‘great recession’.
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Sunday, May 29, 2016
Billionaire Gross: Jubilee Debt Relief as Prelude to New Global Economic Order / Interest-Rates / Global Debt Crisis 2016
Bill Gross just made headlines by explaining that Japan was bankrupt and its central bank would have to acquire the nation’s debt and then “forego repayment.”
What billionaire Gross is talking about here is a debt jubilee. And we’re not surprised. We’ve predicted this after all. I’ve often said that Japan will be the first to fall.
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Friday, May 27, 2016
The 5 Fatal Flaws of Trading / Interest-Rates / Learn to Trade
Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit -- and more importantly, do it consistently. How do they do that?
That's an age-old question. While there is no magic formula, Elliott Wave International's own Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. We don't claim to have found The Holy Grail of trading here, but sometimes a single idea can change a person's life. Maybe you'll find one in Jeffrey's take on trading. We sincerely hope so.
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Thursday, May 26, 2016
Cash Holdings of Apple and Other Tech High Fliers Are A Massive Risk in This Debt Jubilee Era / Interest-Rates / Credit Crisis 2016
Throw every “norm” out the window. This Keynesian, central banking world has everything so distorted that nothing makes sense anymore.
There are currently more than $7 trillion in bonds, worldwide, offering a negative interest rate. Wrap your head around that! People are actually paying trillions of dollars to give their money to mostly bankrupt governments with the promise they will receive less at a later date.
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Thursday, May 26, 2016
Bill Gross on the Fed, Short Credit, Japan and more / Interest-Rates / Global Financial System
Janus Capital Management Fund Manager Bill Gross was interviewed by Erik Schatzker at the 2016 Blooomberg Fixed income Event at the Beverly Hills Hotel in California.
Gross shared his thoughts on: whether the Fed will move in June, how much that matters, Janus’ performance, trying to short credit, hedge fund fees, Japan’s fiscal policy and the currency market.
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Wednesday, May 25, 2016
U.S. Household Debt Still Below 2008 Peak / Interest-Rates / US Debt
Household Debt Summary
- Household debt for the first quarter of 2016 is up $136 billion.
- Mortgage debt, up $120 billion, accounts for most of the gain.
- Student loan debt, up $29 billion, accounts for most the rest.
- Total household debt still below 2008 peak
Monday, May 23, 2016
Why Aren't Venezuelan Interest Rates Going Negative Like in Europe? / Interest-Rates / Venezuela
Monday May 23rd 2016 I'm gonna talk about Venezuela is mainly because we've
been you know bombarded in the last few months which stories in the mainstream
and alternative media about hyperinflation Venezuela societal
collapse people killing packs to eat you know loads of horrible stories and I'm
not saying they're not true they are and Venezuela though is a fairly rich
country know you look at their GDP per capita has hired in China I know they
have a lot of oil revenue but it's still not a poor country and the main theme
and even Zero Hedge who blog I read it and I really enjoy what they talked
about and how you analyze things they've caught you know they've been trapped by....
Thursday, May 19, 2016
Bank Bail-Ins Pose Risks To Retail Depositors / Interest-Rates / Credit Crisis 2016
Bank bail-ins pose risks to retail investors and especially savers throughout the western world. The new bail-in rules have been made operational since the beginning of this year in the EU and in many other countries yet the risks and ramifications of bail ins have been largely ignored in most of the media.
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Thursday, May 19, 2016
The Federal Reserve is Not Going To Raise Interest Rates and Destroy Gold / Interest-Rates / US Interest Rates
Yesterday the stock market and gold prices fell into their closing bells after the release of minutes of the Federal Reserve’s April meeting.
The Federal Reserve did not raise interest rates at that meeting, but the minutes showed that some Federal Reserve Board members hope to raise interest rates in June.
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Wednesday, May 18, 2016
An Incredibly Simple, Rarely Used Way to Book 170% Investing Gains / Interest-Rates / Learning to Invest
By Dan Steinhart
Editor’s note: You’ll find a very important theme running through the Dispatch over the next five days…
We’re going to discuss the secrets of Casey Research founder Doug Casey’s wildly successful investment strategy…one that has made him tens of millions of dollars in the markets. For each of the next five days, you’ll receive an essay about how this strategy can potentially add tens of thousands of dollars a year to your investment returns…
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Tuesday, May 17, 2016
Could the National Debt Really Grow as High as $31 Trillion by 2023? / Interest-Rates / US Debt
It just seems like human nature to ruin a good thing.As much as I am a strong proponent of free market capitalism, and against complex regulations and central planning, I understand government’s role in all this.
Capitalism and democracy teamed up in the late 1700s to form the big bang in economics, or what I call “When Harry met Sally.”
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Monday, May 16, 2016
How Stupid Do You Have To Be, Part 2: 100-Year Bonds / Interest-Rates / Global Debt Crisis 2016
“Of course there are true copper bottomed mistakes, like spelling the word “rabbit” with three m’s, or wearing a black bra under a white blouse, or, to make a more masculine example, starting a land war in Asia.” — John Cleese
We all make mistakes, but some are bigger than others. An example of a serious one that’s both potentially catastrophic and easily avoided is to lend money for long periods during a time of rising debt and financial instability. Who, for instance, would commit capital for 30 years to Italy by buying that country’s long-dated government bonds? “No one” is the sane answer, yet those bonds do find buyers.
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Monday, May 16, 2016
Why Puerto Rico Defaulted and Greece Did Not / Interest-Rates / Global Debt Crisis 2016
The Caribbean island of Puerto Rico is in the throes of a debt crisis that recently reached a breaking point when it missed a $422 million bond payment due May 2nd. When asked in a subsequent interview about the likelihood of making future payments on the remaining $72 billion of debt, Puerto Rican Governor Alejandro Garcia Padilla noted that the U.S. territory “does not anticipate having the money.”
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