There once was a time (at least in banished Austrian economic circles) when low market interest rates signaled to entrepreneurs a positive environment in which to make investments in order to grow or create new product. That indicator has long since been broken as central banks muddy the waters and arbitrarily move interest rates wherever they feel 'optimal', including corporate bond rates.
Authored by Paul Craig Roberts,
As Our Past Wars Are Glorified This Memorial Day Weekend, Give Some Thought To Our Prospects Against The Russians And Chinese In World War III
By Chris at www.CapitalistExploits.at
In a misguided and desperate attempt to fight the headwinds of deflation (a byproduct ofunsustainable debt which the market has been trying to unwind for the past decade), central bankers have manipulated markets with a range of tools. This ranges from a lot of preposterous jawboning to quantitative easing and slashing interest rates all the way down to levels never experienced before.
Following the May 12 launch of "Aegis Ashore", the operational name of Washington's European missile defense system based in Romania, which overnight swept away the tentative European nuclear arms race balance of power as it removed a Russian "first strike threat" thereby pressuring Russia to implement further nuclear offensive and defensive measures, Putin was livid, and as we reported yesterday, during his press conference with Greek PM Tsipras, the Russian president explicitly warned Poland and Romania that they are now in Russian first-strike crosshairs, and that Russia's most likely re
Submitted by John Rubino via DollarCollapse.com,
It’s unclear what China was thinking when it borrowed all those trillions to quadruple its capacity to make steel, cement and other basic industrial products. There’s no record of it checking in with the other countries that have such industries to see if a sudden surge of cheap imports was okay with them.
Turns out that it’s not. The US in particular seems to lack a sense of humor where the death of its steel industry is involved: