central banks

It’s Not Stagflation, But Inflationary Impoverishment

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By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

It is a matter of personal interest that it was my uncle, Iain Macleod, who invented the term stagflation shortly before he was appointed shadow chancellor in 1965. It is no longer used in its original context. From Hansard (the official record of parliamentary debates) 17 November that year:

We now have the worst of both worlds —not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of “stagflation” situation and history in modern terms is indeed being made.

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Global Synchronized Slowdown

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By Michael Pento – Re-Blogged From http://www.PentoPort.com

Not too long ago the overwhelming consensus from the perennial Wall Street Carnival Barkers was that investors were enjoying a global growth renaissance that would last for as far as the eye can see. Unfortunately, it didn’t take much time to de-bunk that fairy tale. After a lackluster start to 2018, the market’s expectations for global growth for the remainder of this year is now waning with each tick higher in bond yields.

U.S. economic growth displayed its usual sub-par performance in the first quarter of 2018; with real GDP expanding at a 2.3% annual rate, which was led by a sharp slowdown in consumer spending. The JPMorgan Global PMI™, compiled by IHS Markit, fell for the first time in six months, down rather sharply from 54.8 in February to a 16-month low of 53.3 in March. The index point drop was the steepest for the past two years. To put that decline in context, the February PMI reading was consistent with global GDP rising at an annual rate of 3.0%. However, the March reading is indicative of just 2.5% annualized growth. Therefore, not only is global growth already in the process of slowing but the insidious bursting of the bond bubble is gaining momentum and should soon push the economy into a worldwide synchronized recession.

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Liquidating Civilization

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By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Further to our ongoing theme of capital destruction, let’s look at a topic which is currently out of favor in the present market correction. Keynes called for pushing the interest rate down near to zero, as a way of killing the savers, whom be believed are functionless parasites. The interest rate has been falling since 1981.

It did not merely fall near to zero. Nor even to zero. It has gone beyond zero, into negativeland. This alone ought to wipe out the mainstream notions of how interest rates are set in our very model of a modern monetary system. You know, the rubbish about bond vigilantes, inflation expectations, real interest rates, risk, etc. Might as well add unicorns, dragons, and leprechauns!

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Black Tuesday October 29th 1929 Revisited?

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By Richard Lancaster – Re-Blogged From http://www.Gold-Eagle.com

Note: This article was originally posted October 29, 2002, when US stocks were in the midst of a severe market crash.  Appropriately, and in view US stocks have already fallen 10% during the first 3 months of 2018, we believe everyone should carefully review the present update as another CRASH may be brewing on the horizon in 2018.

“These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again.”
– John D. Rockefeller on the Depression in 1933

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Central Bankers Consider Dictating Climate Policy to Private Businesses

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By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

What is the difference between a centrally planned Communist economy, and an economy where Central bankers punish businesses which defy their investment directives?

Global Warming Is a Central Bank Issue

Ferdinando Giugliano, 13 April 2018, 3:30 PM

Last week, central bank governors from the U.K., France and the Netherlands met in Amsterdam to discuss how to adapt regulation to the risks posed by climate change. Together with five other institutions (from China, Germany, Mexico, Singapore and Sweden), these central banks have formed the “Network for Greening the Financial System” (NGFS). This group has two objectives: sharing and identifying best practices in the supervision of climate-related risks, and enhancing the role of the financial sector in mobilizing “green” financing.

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Why Central Banks Could Mint Their Own Digital Currency

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Re-Blogged From Stratfor

Highlights

  • Only 8 percent of global financial transactions today involve cash, but that figure will diminish even further as digital currencies gain prominence.
  • Faced with the growth of cryptocurrencies such as bitcoin, central banks around the world will continue their research into introducing their own digital currencies.
  • By entering the market for cryptocurrencies, central banks could pose a profound threat to the commercial banking business model.

A worker passes a bitcoin mining operation in Quebec in March 2018.

(LARS HAGBERG/AFP/Getty Images)

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Why A Dollar Collapse Is Inevitable

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By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again.

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