Business

Janus Portfolio Manager and purported “bond king” Bill Gross appeared on “Bloomberg Markets” to discuss his latest investor letter, in which he criticized loose-money policies of the world’s central banks, comparing them to gluttons who’ve feasted on bonds.

The unprecedented stimulus measures adopted by the Federal Reserve, the European Central Bank, the Bank of Japan and others have created distortions in markets, rendering widely followed historical models like the Philips Curve and Taylor rule useless, Gross said.

US stock indexes remain at record highs, and volatility near its lows, despite signs that their recordsetting run is losing steam as it becomes increasingly dependent on a narrow band of stocks. Indeed, signs that the rally is running on fumes have convinced portfolio managers and Wall Street strategists that the second-longest bull market of all time will be over in less than 18 months, while a similarly longstanding rally in bonds is also nearly ready to roll over, according to a Bloomberg survey of fund managers and strategists.

As we're all well aware by now, once Trump was elected on November 8th the Fed suddenly decided it was no longer necessary to prop up asset prices in the United States with artificially low interest rates.  As such, they've embarked on their first rate-hiking spree since the last one ended just over a decade ago. 

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

If there’s one myth - and there are many - that we should invalidate in the cross-over world of politics and economics, it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them.

Via The American Herald Tribune,

Bolivia's President Evo Morales has been highlighting his government's independence from international money lending organizations and their detrimental impact the nation, the Telesur TV reported.

"A day like today in 1944 ended Bretton Woods Economic Conference (USA), in which the IMF and WB were established," Morales tweeted.

 

"These organizations dictated the economic fate of Bolivia and the world. Today we can say that we have total independence of them."