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US Federal Reserve

How Peak Debt Constrains The Fed From Moving Rates Higher

Submitted by Eugen von Bohm-Bawerk via Bawerk.net,

We have argued for a long time that 2016 will probably be a year of recession in the US and the Federal Reserve’s intent on raising rates will only help expedite it. We believe the current rate cycle will be short lived as the Federal Reserve is constrained by the heavy debt load weighing on the US economy. Or more specifically, the large share of unproductive and counterproductive debt that drain the US economy for resources. 

The Global Economic Reset Has Begun

Submitted by Brandon Smith via Alt-Market.com,

In my last article, I outlined the deliberately engineered trend toward the forced “harmonization” of national economies and monetary policies, as well as the ultimate end goal of globalists: a single world currency system controlled by the International Monetary Fund and, by extension, global governance, which internationalists sometimes refer to in their more honest public moments as the “new world order.”

In Lehman Rerun, Banks Are Buying Protection Against Their Own Systemic Demise Again

In Lehman Rerun, Banks Are Buying Protection Against Their Own Systemic Demise Again

At the peak of the craziness of the last cycle, banks took to protecting themselves by buying (credit) protection on other banks as a 'hedge' for systemic risk (which instead exacerbated contagion concerns, seemingly missing the facts that their bids drove risk wider, increaing counterparty risks, and that the inevitable collapse required to trigger these trades would also mean the payoffs to the 'hedges' would never be realized).

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