The Fed's reverse QE program, along with its seven rate hikes from December thru June —with two more slated for this year--is also putting pressure on the most interest rate sensitive parts of the U. This change is not so much by choice but due to asset price levels and inflation rates that are at risk of becoming intractable if central banks did not act.
Rising interest rates will push an even greater percentage of these corporate balance sheets upside down. Also occurring in that infamous month of September was the placing into conservatorship of both Fannie Mae and Freddie Mac; those two giant government sponsored enterprises that would have gone bankrupt without a taxpayer bailout.
However, the Fed recently found it necessary to telegraph to certain insiders within the Main Stream Financial Media what it would do during the next financial crisis.
It is estimated that the inflation rate in Zimbabwe peaked at about 80 billion percent year-on-year in Paying people to lay fallow is the perfect recipe for a massive plunge in worker productivity and economic contraction.
And while Venezuela is the poster child of failing economies, there are other deteriorating economies around the globe that are not far behind.
A brief look back in history will show that the Roman Empire was at least partially destroyed by intractable inflation inflation rates in the thousands of percent per annum. However, the inflation pump has been turned off this year and will go trump plans effect single moms reverse throughout next year.
And those asset price bubbles are completely dependent upon never-ending and ever-increasing central bank and government stimuli to remain in a bubble; or the entire artificial construct comes crashing down.
This currency turmoil resulted in substantial depletion of Thailand's official foreign exchange reserves and marked the beginning of a deep financial crisis that spread across much of East Asia. Also, 14 of the most important global central banks are in a rate hiking mode, while only 5 currently hold a dovish monetary policy stance.
The amount of Publicly Traded Debt in the U. But facts don't seem to matter to liberal elites who view UBI as a great tool to deploy once artificial intelligence turns people into gelatinous masses of useless goo. He believes people don't want a handout, but he intends to petition for one on their behalf anyway.
That was the fourth monthly decline in the past five months and was the slowest sales pace since January. However, coordination among central banks is not what is happening. Even worse, those Bankruptcy filings in March were the second largest year-over-year jump for any month since the Great Recession and is indicative of an economy that has reached the end of its credit cycle.
The resulting global recession, which is already approaching due to the impending complete removal of central banks' bid for inflated asset prices on a net basis, is becoming expedited and exacerbated by the Trade war. Now that QE is ending and interest rates are rising, the whole artificial construct has started to implode.
The strengthening dollar is placing incredible stress on the EM space, especially those countries that hold onerous dollar-denominated debt in conjunction with large current account and budget deficits.
Since the autonomy of the Fed has been publicly impugned, Powell has no other option but to continue on this path of raising rates. During the Great Recession, we witnessed a deterioration of skills by those who opted for the continual extension of unemployment benefits.
But emerging markets are not the only nations that are in turmoil. However, not only does the stock market top out ahead of an official recession, as declared by the National Bureau of Economic Research; but since the economy is already much weaker than in past inversion points and debt levels and asset prices are much greater, it is certain that the recession and equity market collapse will occur much closer to the inversion than the previous occasions.
Five days before the sale, a CNBC host who loves to play with buttons fervently advised a viewer to leave his money in the firm, insisting it would be silly to make a sale at current values.
He concluded, "We have to look at the incentives to work. July 2nd, My research shows that this is one of the most hawkish Fed rate-hiking regimes ever. The problems didn't end with September.
History proves that a recession follows an inversion by months. That is the trenchant difference from the past few years. The first round of Quantitative Easing--a form of government-sponsored counterfeiting--was announced on November 25, The Fed is miles ahead in its reversal of monetary stimulus, as it has already raised rates seven times; with two more 25bps rate hikes in the pipeline scheduled for later this year.
Therefore, the mostly unilateral unwinding of QE and ZIRP from the Fed is causing upward pressure on the value of the dollar and thus vastly increasing the debt burden on foreign borrowers. The primary driver of the wealth gap between the one percenters and the poor is the result of central banks' falsification of money, interest rates, and asset prices.
The largest part of the real estate market Existing Home Sales has dropped 4 months in a row and are down 1. This would virtually guarantee a sharp slowdown in productivity and GDP growth. As bizarre as this may sound, it is rapidly gaining worldwide traction.
It is now very likely that the NYSE will suffer through one or more of what is known as circuit breaker days. Perma-bulls would have you believe that the problems of Turkey are all about the persecution of pastor Andrew Brunson; who God willing will be released from his imprisonment soon.
But borrowing costs are already in the basement of history. Only a free-floating and market-based interest rate can accomplish this task.The Texarkana Gazette is the premier source for local news and sports in Texarkana and the surrounding Arklatex areas.
Your source for local news, sports, high school sports and weather in and around Jefferson City, Columbia, Fulton and the Lake of the Ozarks. All of Mid-Missouri. "Medicare for all" and single-payer health care are suddenly popular.
Why Trump Won. President Trump, Dear Diary Articles, Elections Why Trump Won By Brother Nathanael Kapner November 20, ©. DEAR DIARY, many are musing on why Trump won. But first we need to see why Clinton lost.
Some say it’s because she did not stress what she would do rather than slamming what Trump would trash, while others say it’s because millions of Democrats did not vote. Fortune Daily & Breaking Business News. Britney Spears 'Domination' residency will earn her millions. But she's hardly alone.
The Trump administration's trade agenda has challenged much of rural America. Democrats have pounced on the issue in key races, positioning the party as a proponent of free trade.Download