Dec 01

Global Bonds Lose $1.7 Trillion In November, Worst Monthly Meltdown On Record:

Less than two months after Ray Dalio warned about a potential wipe out in the bond market, he has been proven right: the November surge in global yields has resulted in the worst monthly loss in the Bloomberg Barclays Global Aggregate Total Return Index, which lost 4% in November, a record drop, and equivalent to $.17 trillion in losses. The index’s market value fell $2.8 trillion over past two months.

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Dec 01

100 year Treasury bonds? You can’t make this stuff up!


Steven Mnuchin Roils Bond Markets With Suggestion Of 100 Year Treasury Bond:

Barely having confirmed he will be Donald Trump’s nominee for Treasury Secretary, Steven Mnuchin proceeded to roil the bond market when the former Goldman banker told CNBC he would look at extending the maturity of future Treasury issuance, hinting at 50 and 100 Year bonds, which promptly sent long-term US bond yields surging by the most since the turmoil following Trump’s election victory.

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Nov 27

H/t reader squodgy:

“Nice reference to the official inflation rate and how GDP is calculated.

The two are inter-twined and the lies have to start with the statistics.”


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Nov 24

H/t reader squodgy:

“A somewhat aggressively compiled analysis of the financial mess.

Economics is neither art or science, but nothing more than theories based on possible human behaviour and response.

It has been interfered with and aggrandised as justification for tax regimes and policies, but, at the end of the day is nothing more than theoretical bullshit.”


Now it Begins to Unravel:

The Credit Bubble Peak was Marked by “Totally Crazy Lending.”

Debt is good. More debt is better. Funding consumer spending with debt is even better – that’s what economists have been preaching – because the consumed goods and services are gone after having been added to GDP, while the debt, which GDP ignores, remains until it is paid off with future earnings, or until it blows up.

Corporations too have gone on a borrowing binge. Unlike consumers, they have no intention of paying off their debts. They issue new debt and use the proceeds to pay off maturing debts. Funding share-buybacks and dividends with debt is ideal. It’s called “unlocking value.”

Debt must always grow. For that purpose, the Fed has manipulated interest rates to rock bottom. Actually paying off and reducing debt has the dreadful moniker, bandied about during the Financial Crisis, “deleveraging.” It’s synonymous with “The End of the World.” Continue reading »

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Nov 23

“When a country embarks on deficit financing (Bush- & especially Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul 

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
– Ron Paul 

Obama knew what he was doing, …

“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
-Barack Obama

… did it anyway:

presidents-debt-correct-cloward-piven-debt-before-after-obama-washington-bush


Trump’s tax plan: massive cuts for the 1% will usher ‘era of dynastic wealth’:

More than eight million low-income and single-parent families will face sharp tax increases under Donald Trump exacerbating income inequality, experts warn

President Donald Trump is set to give America’s richest 1% an average annual tax cut of $214,000 when he takes office, while more than eight million families with children are expected to suffer financially under his proposed tax plan.

On the eve of the election, Trump promised to “massively cut taxes for the middle class, the forgotten people, the forgotten men and women of this country, who built our country”. But independent expert analyses of Trump’s tax plan show that America’s millionaire and billionaire class will win big at the expense of struggling low- and middle-income people, who turned out in large numbers to help the real estate billionaire win the election.

Experts warn that Trump’s tax plan will exacerbate America’s already chronic income inequality and herald in a “new era of dynastic wealth”. Continue reading »

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Nov 21

H/t reader squodgy:

“This is the first Chancellor to admit the country is in a terrible mess. Strange how the MSM let it fly under their radar. It isn’t just in a terrible mess, it is TOTALLY BANKRUPT, INSOLVENT and WORTHLESS.

Under Thatcher on instructions from the ‘elite’, the UK diversity was crushed, manufacturing decimated, agriculture ‘monocultured’, and national assets disposed of to foreign conglomerates. At that time North Sea Oil was carrying UK.

Now, no oil, no manufacturing, no agriculture. Just a greedy and corrupt Financial sector currently in a death spiral thanks to bad investment gambling when a slump was clearly on the horizon.

Fucking incompetence, bad management & treason.”

High treason, indeed.

At least they have applied the “best” policies to “jumpstart the (now almost non-existent) economy”

quantitative-easing


philip-hammond

UK economy faces uncertainty, limited by debt: Hammond:

UK finance minister Philip Hammond has warned that high debt has tied the government’s hands, in a time when the country needs a “watertight” economy to cope with years of “uncertainty” that lie ahead.

In an interview with the BBC on Sunday, Hammond said the country’s first budget plan since the vote to leave the European Union (EU) in July was constrained by “eye-wateringly” high debt and had to be carefully planned to minimize possible damages by Brexit.

“Over the next couple of years we are going to face some uncertainty over the economy,” he said, pointing to the difficult negotiations with the EU that, according to Prime Minister Theresa May, would take at least two years to complete.

Britain’s public debt hovers around £1.6 trillion, which equals 84 percent of the country’s economic output last year and is the highest over the past 50 years. Continue reading »

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Nov 17

Obama_debt_star

Obama On Pace To Increase The Debt By Stunning $2.4 Trillion This Year

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Nov 17

An Unexpected $12 Trillion Hole Emerges In Donald Trump’s Plan To “Make America Great Again”:

The “great hope” that has lifted asset prices and inflation expectations over the past week, sent the Dow Jones and the Russell to all time highs, unleashed the highest US Dollar in 13 years and muted pundits who warned of a Trump-induced market crash is that the new president will soon unleash a “Reaganesque” fiscal stimulus, one which will unanchor inflation from recent stubbornly low levels, and succeed where the Fed and other central banks have failed since 2009. Adding to this speculation was Wednesday’s report that the Trump administration is even considering creating an “infrastructure bank” despite nixing the idea previously.

However, as we noted yesterday, there is one major difference between the days of Reagan and modern America: citing the Bond Vigilantes blog we noted that “when Reagan came into power, debt to GDP was just 30%. It is nearly 100% now, as such Reagan had much more fiscal headroom than Trump does today.” Echoing what we said one week earlier, the blog concluded that “if Donald Trump intends to flex the fiscal lever, bond market vigilantes could return with a vengeance, making it increasingly expensive for him to do so.” Continue reading »

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Nov 16

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper:

It is official: Trump or no Trump, foreign central banks, SWFs and virtually every other official institution in possession of US paper, and as of this month, private investors too, are liquidating their Treasury holdings at a record pace.

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Oct 30

H/t reader squodgy:

“Brave Lady, and very logical. No more than ONE YEAR LEFT.
Of course, if the banksters hadn’t printed helicopter money, it would have been 2009, but hey, it’s anyone’s guess, and the real truth (rather than the newspeak) tells anyone with a modicum of common sense to keep preparing.”


How Much Time do we have Before the Next Economic Crisis?:

Not much time.

Since early July, the 30-year US Treasury Bond Price Index has plunged 8.3%. It’s now called “the rout” in longer-dated government bonds. One of the specters is rising inflation at a time of ultra-low yields.

What has become the number one predictor of a bear market in stocks over the past many decades? The US Treasury yield curve. It drives bank lending – which can strangle the economy. But this time, the risks are much higher, and the potential economic consequences steeper. Continue reading »

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Oct 26

Chinese Bank Liabilities Rise Above 200 Trillion Yuan For The First Time:

Overnight China’s Banking Regulator reported the latest amount of total domestic assets on China’s bank books: as of September the number is a stunning CNY217.3 trillion, or just over $32 trillion

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Oct 21

19.10.2016
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Oct 18

It is becoming increasingly obvious that foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US paper, is liquidating their holdings at a very disturbing rate.


Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US Paper:

One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion, the lowest since 2012. One month later, we refresh this chart and find that in the latest weekly update, foreign central banks continued their relentless liquidation of US paper held in the Fed’s custody account, which tumbled by another $22.3 billion in the past week, pushing the total amount of custodial paper to $2.805 trillion, another fresh post-2012 low.

tsy-custody

Then today, in addition to the Fed’s custody data, we also got the latest monthly Treasury International Capital data, which showed that the troubling trend presented last one month ago, has accelerated. Recall that a month ago,  we reported that in the latest 12 months we have observed a not so stealthy, in fact quite massive $343 billion in Treasury selling by foreign central banks in the period July 2015- July 2016, something truly unprecedented in size and scope. Continue reading »

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Oct 18

China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

“From a growth rate perspective, the speed of credit expansion is alarming. The current pace of credit growth in China is realistically in a range between 19% and 20%, well above the reported official TSF growth of 12.4% and new loan growth of 13.0% in September. Relative to GDP, China’s credit-to-GDP ratio currently in a range from 260% to 275% of GDP as of September 2016″Barclays

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Oct 14

The Total Amount Of Debt In The World Just Hit A Record $152,000,000,000,000 (152 Trillion):

If anyone ever asks you how much debt there is in the world, now you will know the answer.  According to the IMF, the total amount of debt around the globe has now hit a staggering 152 trillion dollars.  That is an amount of money that is almost unimaginable, and the IMF says that it is equivalent to 225 percent of global GDP.  It is the biggest debt bubble in the history of the planet, and it is rising at an extremely alarming pace.  Experts all over the world agree that when this debt bubble finally bursts, it is going to create an economic crisis on a scale that humanity has never seen before. Continue reading »

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Oct 13

Deutsche Bank Sells Another $1.5 Billion In Debt At Junk Bond Terms

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Oct 10

H/t  reader Squodgy:

“Exactly as explained in John Perkins’ “More Confessions of an Economic Hit,an”, Brazil has succumbed to US pressure/bribery, ensuring the challenge to BRICS by the Rothschilds is real and delaying the death of the Petrodollar.

Putin must respond very carefully if he is to skirt around the already well established Russian tentacles of the Rothschild Empire and achieve ties with China, India & South Africa (which is also under economic Rothschild based attacks).

It does seem BRICS ls under serious economic attack by the institutions, and unless they act soon, the Rothschilds will indeed enslave us all.”


Can Russia Learn From Brazil’s Fate? — Paul Craig Roberts and Michael Hudson:

Can Russia Learn From Brazil’s Fate?

Paul Craig Roberts and Michael Hudson

William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the removal of their protector, thereby providing the world another example of the impotence of democracy. http://www.informationclearinghouse.info/article45561.htm

Everyone should read Engdahl’s article. He reports that part of the attack on Rousseff stemmed from Brazil’s economic problems deliberately created by US credit rating agencies as part of Washington’s attack to down grade Brazilian debt, which set off an attack on the Brazilian currency. Continue reading »

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Oct 09

Hangzhou, We Have A Problem: “Over 71% Of New Chinese Loans Went To Fund Mortgages”:

Last week, the IMF warned that China’s growing debt “posed risks to financial stability.” Here’s why: new loans in August reached 948 billion yuan ($142 billion), more than double the figure a month before, data from the People’s Bank of China showed. And the punchline: over 71% of the loans went to households, mainly to fund mortgages.

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Oct 05

The IMF Sounds An Alarm As Global Debt Hits A Record $152 Trillion Or 225% Of World GDP

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Oct 04

It’s official: US government ends fiscal year with $1.4 trillion debt increase:

The United States government closed out the 2016 fiscal year that ended a few days ago on Friday September 30th with a debt level of $19,573,444,713,936.79.  That’s an increase of $1,422,827,047,452.46 over last year’s fiscal year close.

us-total-debt-and-annual-change-2016

That debt growth amounts to roughly 7.5% of the entire US economy.  By comparison, the Marshall Plan, which completely rebuilt Western Europe after World World II, cost $12 billion back in 1948, or roughly 4.3% of US GDP at the time. Continue reading »

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Oct 04

China Shocker: A Quarter Of All Companies Can’t Pay The Interest On Their Debt:

Almost exactly one year ago, we reported that as a result of the commodity crash of 2015, more than half of Chinese companies in the commodity sector did not generate enough cash flow to pay the interest on their debt. Months later this has manifested in a countrywide push for debt-for-equity exchanges, and outright bankruptcies including the first ever liquidation of a Chinese state-owned enterprise.

mac-leverage-curve-1

While dramatic, the question remained: what about other Chinese companies not directly involved in the commodity space? We now know the answer: according to Reuters, profits at roughly a quarter of all Chinese companies were too low in the first half of this year to cover their debt servicing obligations, i.e., merely the mandatory interest payment let along debt maturities, as earnings languish and loan burdens increase.

So with unprecedented debt – and as the IIF chart below shows, China’s total debt/GDP of 300% has never been lower …

china-debt-iif_1

… why are mass defaults not a daily staple of the Chinese economy, or as Reuters notes “as corporate China sits on $18 trillion in debt, equivalent to about 169 percent of China’s GDP, few firms reported feeling the heat.Continue reading »

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Sep 28

And again: Prepare for collapse.


Health Ranger issues international financial alert as Deutche Bank approaches catastrophic collapse… Trillions in debt exposure will burn through European banks like a raging firestorm:

Since 2008, I’ve been warning Natural News readers about the inevitable, mathematically unavoidable global debt collapse. For the last eight years, crooked politicians and criminal banksters have been “kicking the can down the road” with endless money printing and currency debasement. Now, it appears, we’ve all run out of road.

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Reader squodgy:

“Bad choice. I prefer the late Frank Zappa’s “THE MOTHERS OF INVENTION”…”

 

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Sep 24

H/t reader squodgy:

“Has anybody else noticed how ALL the media, both the Mainstream and the Alternative have been duped into reporting crap…Charlotte, Brad & Angelina, stupid immigration rants, Election nonsense lies and so on, whilst this….

UN fears third leg of the global financial crisis – with prospect of epic debt defaults

and this…

U.S. Coalition Intelligence “Operations Room” Inside Syria, Destroyed by Russian Missile Attack: Thirty Israeli, American, British, Turkish, Saudi, Qatari Intelligence Officials Killed, Report

are totally ignored.

The smokescreening and deliberate downplaying of the lead in to both the WWlll & Global Economic & monetary collapse should be ringing bells everywhere but it bullshit as usual.

So, what is the panel’s opinion on Brad’s alleged cruelty?”


unitednations
The world is the target.

UN fears third leg of the global financial crisis – with prospect of epic debt defaults:

The third leg of the world’s intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history.

It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal free-market orthodoxies promoted for almost forty years by the Bretton Woods institutions, the OECD, and the Davos fraternity.

“Alarm bells have been ringing over the explosion of corporate debt levels in emerging economies, which now exceed $25 trillion. Damaging deflationary spirals cannot be ruled out,” said the annual report of the UN Conference on Trade and Development (UNCTAD). Continue reading »

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Sep 20

chinese-money-public

The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent:

The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.  At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.  While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and it is only a matter of time before that debt bubble horribly bursts.  The situation in China has already grown so dire that the Bank for International Settlements is sounding the alarm

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late. Continue reading »

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Sep 20

US federal debt expanding at fastest rate since the crisis

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Sep 17

Foreign Central Banks Sell A Record $343 Billion In US Treasuries In The Last Year

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Sep 13

Sep 11, 2016

H/t reader squodgy.

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Sep 07

H/t reader squodgy:

“A very positive look at what we should expect with a collapsing economy and how to approach it positively…..”


07.09.2016

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Sep 06

For The First Time, Two European Non-Financial Companies Will Be Paid To Issue Debt:

Today was another historic day in the monetary twilight zone that is Europe, when two large European, non-financial companies were the first in history to be paid by investors to borrow, courtesy of the ECB’s corporate debt monetization program, which has unleashed an unprecedented scramble for frontrunning the central bank’s purchases of corporate debt and a historic collapse in bond spreads.

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Sep 02

H/t reader squodgy:

“Looks like Trillions are the new Billions.
We used to sit trying to work out how much a million was, then came the billions….and now the Trillion is the new norm.

What better indication of the inflationary spiral do we need?”


The National Debt Just Officially Hit $19.5 Trillion; It Was $10.6 Trillion When Obama Took Office

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