RSSCategory: Category: Economy

Are Central Banks Losing Control Over Interest Rates?

Are Central Banks Losing Control Over Interest Rates?

This article points to the potential effects of the “debt trap.” Debts have mounted to record highs. The associated financing costs become unsustainable when interest rates are high (or start rising). Record low interest rates have one characteristic in common: they have much more upside potential than downside.

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SOS Distress Warnings From A Crazy World

SOS Distress Warnings From A Crazy World

There are many more insanities in our financial and political systems than have been mentioned here. The consequences will be unpleasant, but we expect no material systemic change without a major crisis. This suggests a crisis is inevitable. When? It will occur when some event destabilizes the system and interrelated cascading failures occur. Cyprus was the warning! Cyprus was the “Mayday!” and the “SOS” to the world. Are you prepared?

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Jim Rickards: We Have Both Inflation And Deflation Right Now

Jim Rickards: We Have Both Inflation And Deflation Right Now

We have two things going on at once right now. You have deflation which is perfectly natural and what you would expect in a depression. Against that, we have inflation from the Fed money printing. In rough numbers we might have 4% deflation and 5% inflation at the same time which net out to about 1% inflation in the CPI. That is not a stable series; that is actually two forces pushing against each other.

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Economic Disasters!

Economic Disasters!

There is an excess of monetary heroin, Quantitative Easing, in Europe, the UK, Japan, the USA and elsewhere. (When will they ever learn?) The S&P 500 is hitting new highs and gold and silver are sitting roughly at two year lows. Strange and stranger every day…….

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