By Keith Dicker of IceCap Asset Management
Journey to the Center of the Earth
Question: Why is the world in an economic funk?
Answer: Private Capital is running away from trouble
Chart 2 shows two variables. The BLUE line shows the amount of quantitative easing or money printing in the USA. Up until September 2008, the amount of money made available to the economy increased in a gradual manner. Thereafter it became a gong show.
The last time we hosted a video by RealVision's Raoul Pal, he laid out what indicators he looks at to decide if the next crisis has arrived, of which global ISM was notable but global trade was the key one, and explained that while the Fed is clearly aware of the economy's deteriorating condition, it is Yellen's job to preserve a sense of confidence and security until the bitter end.
In his latest video released this past week, we are that much closer to the end as the title of his interview with Grant Williams makes clear: The Reset Part 2.
Submitted by Adam Taggart via PeakProsperity.com,
As we've been watching closely, something is wrong with the big banks. Their shares have lost 25-33% of their market value since the beginning of the year. What's going on?
The turmoil seems greatest in Europe, where bank shares have fallen the hardest, and negative interest rates have appeared with increasingly frequency across member countries.
When the Fed unveiled its reverse repo program several years ago, it was meant to be a means for the Federal Reserve to soak up excess liquidity from domestic financial institutions when the Fed eventually proceeded to hike interest rates, as it did in mid-December.
Submitted by Richard Ebeling via EpicTimes.com,
Eighty years go, on February 4, 1936, one of the most influential books of the last one hundred years was published, British economist, John Maynard Keynes’s The General Theory of Employment, Interest and Money. With it was born what has become known as Keynesian Economics.