A new report from economists at ING looks at which economies are being hit hardest by the coronavirus supply chain shock and concludes Canada and Germany are the biggest losers: “Of the world’s 10 largest economies, Canada suffers most from the fallout of foreign supplies and Germany suffers most from weaker foreign demand.” Read More.
Money manager Michael Pento has long warned the global financial system was “not sustainable or viable” because of record debt creation. Pento has also long said, “This was the biggest debt bubble in history, and it is going to pop someday.” That day has arrived.
Jim Grant, editor of «Grant’s Interest Rate Observer», argues that ultra-low interest rates and record-high debt are the main cause of today’s unprecedented market turmoil. More than ever, he’s betting on gold and mining stocks. Read More.
The novel coronavirus has already had a significant impact on the global economy, which will worsen if the outbreak and the shutdowns designed to contain it continue for very long. But it’s only an accelerant: If not Covid-19, as the disease caused by the virus is known, something else would have started the conflagration. Read More.
Governments worldwide are trying to stop the spread of the Covid-19 virus, which now threatens the global economy. RT talked to legendary investor Jim Rogers about the financial consequences of the outbreak. Read More.
Echoing many of Jim Grant’s recent fears, Guggenheim Investments’ CIO Scott Minerd fears the consequences of policymakers returning to the same tools employed in the financial crisis as a grand Faustian bargain. Read More.
The economic debate of the day centers on whether the cure of an economic shutdown is worse than the disease of the virus. Similarly, we need to ask if the cure of the Federal Reserve getting so deeply into corporate bonds, asset-backed securities, commercial paper, and exchange-traded funds is worse than the disease seizing financial markets. It may be. Read More.
You and your neighbor, let’s call him Bob, choose two very different paths. The year is 2001. You choose to live within your means, only paying for what you can in cash and never taking a loan. He, instead, takes a $1-million loan to fuel lavish spending. He builds a new house, hires gardeners, buys new furniture and a big-screen TV. To you and all of your neighbors, looking in from the outside, Bob is very wealthy. Read More.
Today as the Bank of Canada follows other G7 nations in slashing its policy rate to the .25% low of the 2008 financial crisis, it also expanded its bond-buying programs to include the recently frozen commercial paper market. Borrowing costs for corporations at record indebtedness have spiked just as revenues are vaporizing–this is not a good combo. Read More.
Gerald Celente, a top trends researcher and Publisher of The Trends Journal, says the world is already in an economic depression. Celente explains, “Never in the history of the world has the whole world, or most of the world, been shut down by politicians destroying people’s lives and their businesses. Read More.
By formally announcing quantitative easing (QE) infinity on March 23, 2020, the Federal Reserve (Fed) is using its entire arsenal of monetary stimulus. Unlimited purchases of Treasury securities and mortgage-backed securities for an indefinite period is far more dramatic than anything they did in 2008. Read More
Since Federal Reserve resources were barely able to prevent complete collapse in 2008, it should be expected that an even larger collapse will overwhelm the Fed’s balance sheet. That’s exactly the situation we’re facing right now. Read More.
March 23 was Peter Schiff’s birthday. It was also the day the Federal Reserve announced QE Infinity. So, Peter spent over three hours hosting a live videocast talking about the latest Fed moves, the potential impact on the economy and answering questions from viewers. Read More.
Jim Bianco at Bianco Research made a fantastic, educational presentation last week on where we are and where we are going. The presentation is 1 hour and 8 minutes in length. Playing it will be one of the best 68 minutes you have ever spent.
The unilateral response from governments to the coronavirus is to helicopter money to people and their businesses in unlimited quantities. Their priority is to keep the debt-driven Keynesian show on the road, and policy makers are approaching the task with unseemly gusto. Read More.
Join Mike Maloney & Chris Martenson as they discuss the ‘financial armageddon’ taking place in markets, along with information on how they are investing and protecting themselves financially during this crisis.
Financial and precious metals expert Egon von Greyerz (EvG) operates the largest private gold vault in the world in Switzerland. More than a year and a half ago, EvG warned here on USAWatchdog.com that “risk is exponential and unmeasurable” because of the estimated two quadrillion of derivatives and debt in the global financial system.
The plunge in both 5- and 10-year “breakeven inflation rates,” are currently suggesting that economic growth over the next couple of quarters will drop markedly. The last time there was such a sharp drop in inflation expectations at the beginning of the “financial crisis.” Read More.