Why The Fed Denied The Narrow Bank

By Keith Weiner – Re-Blogged From Gold Eagle

It’s not every day that a clear example showing the horrors of central planning comes along—the doublethink, the distortions, and the perverse incentives. It’s not every year that such an example occurs for monetary central planning. One came to the national attention this week.

A company called TNB applied for a Master Account with the Federal Reserve Bank of New York. Their application was denied. They have sued.

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The Big Pension Grab

It has been quite some time since we last collaborated on an article, opting instead to chase other pursuits and let some of the hysteria going on in the world fade into some type of steady state. It hasn’t happened, but there are pressing matters that need attention regardless. The circus going on all around us makes for great theater and distraction – and that is its intent.

The topic at hand is the failing pension and retirement system. Americans are notorious for spending well in excess of what they make, saving nothing in the process. The only way most save are the deductions from their paychecks for a 401k or IRA. Or perhaps they contribute to an IRA at tax time, when they realize doing so will reduce their tax liability.

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Monetary Paradigm Reset

By Keith Weiner – Re-Blogged From Gold Eagle

Explaining a new paradigm can be both simple and impossible at the same time. For example, Copernicus taught that the other planets and Sun do not revolve around the Earth. He said that all the planets revolve around the Sun, including Earth. It isn’t hard to say, and it isn’t especially hard to grasp.

Indeed, one of its virtues was making the universe simpler. In the old geocentric model, there is the phenomenon of so called retrograde motion—the planets appear to stop moving forward in their orbits, and move backwards temporarily. It’s difficult to describe mathematically, and worse, no one could explain the cause.

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Return of the Euro Crisis: Italy Quakes, Rest of the World Shakes and Merkel’s Empire Breaks

By David Haggith – Re-Blogged From Great Recession Blog

Europe’s many fault lines are spreading once again, bringing the endless euro crisis saga back in 3-D realism. Italy gained a new anti-establishment government last week, even as Spain elected a new Socialista government that could crack Catalonia off from the rest of Spain. All of Europe fell under Trumpian trade-war sanctions and threatened their own retaliation. And Germany’s most titanic bank got downgraded to the bottom of the junk-bond B-bin.

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Catalyst For The Next Financial Crisis

By Michael Pento – Re-Blogged From Silver Phoenix

The cause of the Great Recession circa 2008 was collapsing home prices that led to an insolvent banking system. However, the next economic crisis will result from the bursting of the worldwide bond bubble and its devastating effect on asset prices.

One of the dangers from spiking borrowing costs is the shutting out of distressed corporations from capital markets, which will inhibit their ability to roll over and service existing debt. This will lead to a massive increase in the number of insolvent corporations.

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The Number That Ends This Cycle…Part 2

By John Rubino – Re-Blogged From Dollar Collapse

Everyone seems to agree that if interest rates keep rising a recession and equities bear market will ensue. But no one knows where the breaking point is in terms of, say 10-year Treasury yields. So it’s become a topic of debate with a lot of heavy-hitters offering opinions. Yesterday Goldman Sachs weighed in:

Goldman: Don’t worry about rising interest rates until the 10-year yield hits 4%

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Here’s When Everyone Should Have Known That Argentina Would Implode

By John Rubino – Re-Blogged From Dollar Collapse

About a year ago, Argentina – which has inflated away and/or defaulted on its currency every few decades for the past century – issued 100-year government bonds. And the issue was oversubscribed, with yield-crazed developed-world institutions throwing money at the prospect of a lifetime of 7% coupon payments.

A contemporaneous media account of the deal:

Argentina sees strong demand for surprise 100-year bond

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