Did Japan Just Prove That Central Banks Are Out Of Ammo?

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

The world has yet to fully digest what is currently happening in Japan.

Japan is the global leader for Keynesian Central Banking insanity. The ECB and US Federal Reserve began implementing ZIRP and QE after 2008. The Bank of Japan has been employing both ZIRP and QE since 2001.

Put simply, by the time the Great Crisis of 2008 rolled around, the Bank of Japan had nearly a decade’s experience seeing what QE, ZIRP, and the like could accomplish.

On top of this, the Bank of Japan has been the single most aggressive Central Bank post-2008. In 2013, it launched a single QE program equal to roughly 25% of Japan’s GDP (the Fed’s largest program was less than 10% of GDP).

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Global Debt Time Bomb Ticks: Puerto Rico Is Next

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

– Puerto Rico Governor says island cannot pay its $72 billion debt
– Puerto Rico debt 15 times per capita median debt of the 50 U.S. states
– Complicated arrangements misled bond investors to believe their funds were secure
– Share price of bond insurer exposed to Puerto Rican debt plummeting, possibly on inside information

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Government Bonds In A Bubble….

The latest economic data are not very encouraging. For instance, the Q1 Gross National Product in the U.S. data pointed to an economic decline of -0.7%. It was the second consecutive year in which the economic activity declined quarter-on-quarter. That has not happened since the credit crisis of 2008.

The American economy clearly has been impacted by the strengthening dollar. But we also believe that real growth is fading. Additionally, we know an interest rate hike will occur sooner or later, which will undoubtedly have economic repercussions. Considering those elements the peformance of the broad averages should not come as a surprise.

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A Financial “Perfect Storm” May Be Brewing

By Daniel R. Amerman, CFA – Re-Blogged From http://danielamerman.com

The “Perfect Storm” of 1991, as described in the best-selling book by Sebastian Junger, resulted from massive weather systems converging to create the storm of a century.

In the financial world at this very moment, we have eight different “weather systems” that are all developing in real time. While the defenses in place may be able to easily withstand any one or two of these concerns in isolation – the danger is the increased power of a “storm” that can result from the merging of multiple systems together.

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