Business

In his latest monthly investment outlook, Janus Henderson's Bill Gross takes a trip to the dark side of monetary machinations and examines the signals (from credit, yield curves, and bitcoin) to comprehend how long this 'dance' can continue, "until the system itself breaks down."

1. Prior market tops (1987, 2000, 2007, etc.) allowed asset managers to partially “insure” their risk assets by purchasing Treasuries that could appreciate in price as the Fed lowered policy rates. Today, that “insurance” is limited with interest rates so low.

The Bank of Japan (BoJ) will RAISE rates in 2018.

And it’s going to collapse the stock market.

The #1 driver of the stock market is Central Bank money printing. In 2017 alone, the BoJ and the European Central Bank (ECB) have printed over $1.5 TRILLION and funneled it into the financial system.

The primary goal of this is to ramp stocks higher. But the consequence is that inflation has been unleashed.

We are getting signs of an inflationary shock throughout the world: in Germany, China, the US, the UK, and even Japan.

Authored by John Rubino via DollarCollapse.com,

Central bankers keep lamenting the fact that record low interest rates and record high currency creation haven’t generated enough inflation (because remember, for these guys inflation is a good thing rather than a dangerous disease).

Authored by Mike Shedlock via www.themaven.net/mishtalk,

Marcello Minenna, a division head at the Italian securities regulator, emailed his plan to "Cure the Eurozone". 

Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, pinged me recently with his plan to save the Eurozone.

The plan requires debt guarantees with a catch: The catch is the guarantees have a price: The riskiest countries have to pony up the most for debt insurance.

A day after labor unions warned that General Electric was planning thousands of job cuts in its troubled power-generation unit, GE confirmed that it’s planning to cut 12,000 jobs globally in its power business as the company’s new leadership tries to revive the company’s moribund stock price.