Situation already so bad that hiding debt becomes a priority? By Nick Corbishley, for WOLF STREET: Australian engineering group UGL, which is working on large infrastructure projects such as Brisbane’s Cross River Rail and Melbourne’s Metro Trains, recently sent a letter to suppliers and sub-contractors informing them that as of October 15, they will be paid 65… Read More
Technology, like natural selection, has no goal. When it comes to the impact of automation (robots, AI, etc.) on jobs, there are two schools of thought: one holds that technology has always created more and better jobs than it destroys, and this will continue to be the case. The other holds that the current wave of… Read More
This post How to Slice Your Cell Phone Bill in Half appeared first on Daily Reckoning. Can you name any other cell phone providers other than AT&T, Verizon, Sprint or T-Mobile? If you can’t, I don’t blame you. The ‘Big Four’ have dominated the mobile provider space for decades. And with their dominance, they’ve been… Read More
The hullabaloo in the repo market torpedoed the function of Interest on Excess Reserves and forced the Fed to go back to the future. With its announcement this morning, the New York Fed confirmed that the Fed’s Plan A of manipulating the federal funds rate into its target range – now between 1.75% and 2.0%… Read More
Snapback Bloodletting in the Overripe Bond Market. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, so we’ve got ourselves one heck of a snapback in government bond yields, not just in the United States, but globally. And the negative-yield mongers that were out there for months, preaching their book and… Read More
House prices in Toronto still below 2017 peak. Montreal, Ottawa hit new highs. Quebec City about flat with Jun 2013. Edmonton back to Oct 2007. Calgary rises to March 2014 level. House prices in Canada, as tracked by the Teranet-National Bank National House Price Index, have more than tripled (+204%) since January 2002. But in… Read More
A corrupt Orthodoxy devoid of new ideas, an Orthodoxy devoted to maintaining the wealth, status and power of insiders regardless of cost, is a brittle, fragile, unstable system. When the ruling Elites sense their control of the populace is waning, they seek to regain full control via the imposition of a strict Orthodoxy, enforced by… Read More
A gigantic spike in 3 years. The UK dominates. By Nick Corbishley, for WOLF STREET: The volume of over-the-counter (OTC) interest rate derivatives traded globally soared by 141% in three years to $6.5 trillion per day in April 2019, according to the Bank for International Settlements’ new Triennial Survey of Global Derivatives Markets. In the prior survey period,… Read More
The Fed has different priorities than the ECB, the Bank of Japan, the Swiss National Bank, et al. During the press conference today following the FOMC meeting, Fed chair Jerome Powell was asked if and when the Fed would push its policy interest rate into the negative. Powell did not respond with his usual, “we… Read More
Ginormous numbers, FX swaps and spot trades, USD, EUR, JPY, GBP, Australian & Canadian dollars… but where the heck is China’s CNY? It happens every three years: The Bank for International Settlements released its Triennial Central Bank Survey about the global foreign exchange (FX) and over-the-counter (OTC) derivatives markets, as it occurred in April. The… Read More
This post Turn Up Your Savings with Your Stove appeared first on Daily Reckoning. A loaf of bread in 1913 cost just over 5 cents. Eggs would set you back 37 cents a dozen. And a gallon of milk 35 cents. Grocery prices today are a bit different… A dozen eggs will run you $1-2.… Read More
This post 7 Retirement Sins You Don’t Want to Commit appeared first on Daily Reckoning. In general, Americans are pretty fearful about retirement and it’s easy to see why. So today I want to talk about seven different things that can totally derail anyone trying to work toward more financial stability in their golden years.… Read More
This post The Wisest Investment You Might Ever Make appeared first on Daily Reckoning. Retirement planning generally focuses on working from your 20s and retiring in your 60s or later. That gives you 40-odd years to squirrel away 10% to 15% of your annual income to accumulate a sufficient nest egg to last the rest… Read More
This post Become Debt-Free in 4 Easy Steps appeared first on Daily Reckoning. When you receive a paycheck, who do you pay first? If you’re like most Americans, you’re probably paying everyone else first—your rent/mortgage, groceries, utilities, car payment, insurance, etc. Once you’re done paying all those bills, you stick whatever you have left (if… Read More
This post Matt Badiali’s Freedom Checks Exposed! appeared first on Daily Reckoning. Investment expert Matt Badiali recently released a viral video called “Freedom Checks” that has many scratching their heads, wondering what these investments are exactly. In the video, now viewed by millions of Americans, Matt says these “freedom checks” are not a government program… Read More
This post The Great Bitcoin Crash of 2018 appeared first on Daily Reckoning. A bitcoin “flash crash” briefly rattled cryptocurrency traders last night. Bitcoin lost more than $3,500 before quickly recovering. As of early this morning, the digital currency is back above $17,000. Speculators may have gobbled up this brief bitcoin dip. But it isn’t… Read More
Authored by Andy Xie via The South China Morning Post,
Central banks continue to focus on consumption inflation, not asset inflation, in their decisions. Their attitude has supported one bubble after another. These bubbles have led to rising inequality and made mass consumer inflation less likely.
Since the 2008 financial crisis, asset inflation has fully recovered, and then some. The US household net worth is 34 per cent above the peak in 2007, versus 30 per cent for nominal GDP. China’s property value may have surpassed the total in the rest of the world combined. The world is stuck in a vicious cycle of asset bubbles, low consumer inflation, stagnant productivity and low wage growth.
The US Federal Reserve has indicated that it will begin to unwind its QE (quantitative easing) assets this month and raise the interest rate by another 25 basis points to 1.5 per cent. China has been clipping the debt wings of grey rhinos and pouring cold water on property speculation. They are..