Economics and Finance News

We find a good rubbernecking spot.

These diminishing vaults stock levels do not appear to be linked to increased demand in the West. Silver ETF demand has been sidelined, yet there have been substantial withdrawals of physical silver from both Comex and London vaults.

The Federal Reserve will fail to bring core inflation below 3.0% in the current cycle shows new research unless they deliver "9% overall of monetary tightening", paving the way for a successive cycle of rate hikes that will take interest rates to levels investors are not prepared for.

With US and global debt exploding prior to both assets and debt imploding, let us look at the disastrous consequences for the US and the world. Debt explosion leading to the currency becoming worthless has happened in history for as long as there has been some form of money whether we talk about 3rd century Rome, 18th century France or 20th century Weimar Republic and many many more.

More and more, it’s looking like my thesis of a massive shift in the global economic order taking place - along with a challenge to the U.S. dollar as global reserve currency - is playing out before our very eyes.

South Africa’s Absa Bank Limited will list new units of the gold-backed exchange-traded fund (ETF) after investors bought all that had been supplied on the Nairobi Securities Exchange (NSE).

See the latest numbers and learn more about the causes of our high and rising national debt.

Developing countries face a dilemma. Most have run up public indebtedness in a sensible response to the global recession induced by COVID-19 lockdowns. This has led to a deterioration in creditworthiness but saved their economies and protected their most vulnerable citizens.

Valuations are the “weighing machine” and provide information about likely long-term investment returns and the potential extent of market losses over the completion of any market cycle. Market internals are the “voting machine” and provide information about speculative versus risk-averse investor psychology. Presently, both the weighing machine ...

The world's largest investment manager has gone all in - and says a global recession is right around the corner. What's more, the financial tricks deployed by Central Banks in the past 'won't work this time.'

In stark contrast to last year, China is now having a positive impact on global inflation dynamics. Weak domestic demand, price declines in raw materials and the return to more normal supply- and logistics conditions, have resulted in China exporting deflation once again. This was evident in the country's large trade surpluses, which were updated on Wednesday, and in this morning’s producer and […]

Last week, the employment news was all about how payrolls increased by 269,000 jobs and blew past expectations. Yet, when we looked at the actual number of employed persons, it turned out that the number of employed people has gone down in recent months.

If there is one point on which there should be no political parsing, no legal jockeying, and no disagreement, it is this: for anyone to advocate terminating or suspending the Constitution is tantamount to a declaration of war against the founding principles of our representative government and the rule of law.

It’s beginning to look like some bad actors are deliberately taking steps to guarantee a coming global food crisis. Every measure that the Biden Administration strategists have been making to “control energy inflation” is damaging the supply or inflating the price of natural gas, oil and coal to the global economy. This is having a huge impact on fertilizer...

The number of billionaires in the world dipped in 2022 due to Russia's war in Ukraine, monetary policy tightening, stock market falls and the Chinese economic slowdown, UBS said Thursday.

~ Today's Water Cooler ~

From Eurodollar Deflation to Financial Repression Inflation; the risks and the consequences.

Germany wants a joint European response to the U.S. Inflation Reduction Act that would involve simplifying rules on state support and expanding funding opportunities, according to a German economy ministry document seen by Reuters on Friday.

The Federal Reserve is removing the massive punch bowl from the US economy and markets. And with the rising US mortgage rates, we got crashing buying conditions for housing. The UMich consumer survey for buying conditions for house rose slightly in December to 36, well below 100 (the baseline).

Now starting to (but just a little).

Two forces are in play. A reduction in reserves lowers the free money. Rate hikes by the Fed increase the amount of free money. QT takes away about $95 billion a month from the total amount the Fed pays interest on. Next week the Fed will hike 50 basis points to a range of 4.25 percent to 4.50 percent. I expect the new interest rate will stairstep to 4.40 percent (3.90 + 0.50).

A greater concern, in our estimation, is this line from the report: “For banks headquartered outside the United States, dollar debt from these instruments is estimated at $39 trillion, more than double their on-balance sheet dollar debt and more than 10 times their capital.” Their on-balance sheet dollar debt is $15 trillion.

If you’re Jamie Dimon, Chairman and CEO of the largest bank in the U.S. with 5,023 bank branches across the country taking in cash each day that represents the life savings of moms and pops and pension funds, announcing that 10 percent of last year’s new hires had criminal backgrounds is not exactly a confidence builder...

Three former Wells Fargo executives face hefty fines over the mega-bank's fake accounts scandal after a judge recommended they be forced to pay $18.5 million in collective penalties for failing to stop the years-long scheme.

The mortgage payment for the median new home sold in the U.S. during October 2022 would now consume nearly half the monthly income of an American household earning the median income. The following chart illustrates that development.

Some anecdotes on not-great care for the aged.

Deutsche Bank AG has applied to re-join the London Bullion Market Association — the world’s foremost standard setter for gold trading — as the German lender seeks to expand its trading unit.

Gold prices rose on Friday due to a pullback in the dollar, while investors looked ahead to U.S. inflation data and a slew of central bank meetings with key focus on the Federal Reserve.

Having fallen for four straight months, the year-over-year change in Producer Prices was expected to continue to slow in November to +7.2% (from +8.0% in October) with a 0.2% increase MoM. However,m the headline printed hotter than expected (+0.3% MoM) - the highest since June. This left the YoY PPI at +7.4%, the lowest since May 2021...

Stock futures dropped after data signaling persistently high inflation bolstered speculation the Federal Reserve will keep its monetary policy tighter for longer.

Investment portfolios belonging to retail traders suffered a $350 billion blow this year as big bets on risky stocks and former high-fliers like Tesla Inc. backfired for the mom-and-pop set.

U.S. equity funds posted enormous outflows in the week to December 7 as investors fretted over the Federal Reserve's rate hikes, with data showing a rebound in employment and a pick up in the services sector.

Outflows from global equity funds in the week ended Dec. 7 hit a three-month high on fears that interest rates could stay higher for longer than expected amid mounting worries about a recession next year.

China's factory-gate prices showed an annual fall for a second month in November while consumer inflation slowed, indicating weak activity and soft demand in an economy that has been held back by tough pandemic controls.

Euro-area banks are returning another €447.5 billion ($472 billion) in cheap loans to the European Central Bank after officials toughened the terms of the program to help fight double-digit inflation.

Generally, 35% of central banks were more inclined to issue a CBDC despite recent events in crypto and none were less inclined a report by the Official Monetary and Financial Institutions showed.

Thailand's financial system is resilient but stability could be affected by an abrupt change in the global financial market, which warrants close monitoring, the central bank said on Friday. Potential impacts include deterioration in debt serviceability of households and smaller businesses if the global economy heads into recession...

Think the greenback can’t be displaced? You might be surprised.

And if one goes by that simple definition, last night China - which has so far been against replicating the Fed's repertoire of market intervention amid concerns it would exacerbate the country's giant debt bubble - quietly launched QE.

Oil prices were stable on Friday, although both benchmarks headed for a weekly loss on worries over weak economic outlook in China, Europe and the United States weighing on oil demand.

The market’s optimism that inflation has peaked is misguided as a potential spike in energy costs in 2023 could keep prices elevated and interest rates high, according to Goldman Sach’s Peter Oppenheimer.

The Federal Reserve is set to disappoint Wall Street as it keeps rates at their peak throughout 2023, dashing hopes markets have priced in for rate cuts in the second half and making a recession very likely.

n the case of a "hard landing" where the economy tips into a sharp recession as a result of the Fed's rate hiking plans, Goldman suspects the damage will be even worse for the stock market.

Cox Automotive Chief Economist Jonathan Smoke examines how trends in gas prices and declining car dealership sentiments are impacting car markets, while also commenting on Carvana and car demand heading into 2023.

Stock futures were higher early Friday as investors look to finish the week on a positive note after snapping a 5-day losing streak on Thursday.

Mark Twain once said there are lies, damn lies, and statistics. The government excels in all three. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey digs into the recent jobs data. He reveals that the numbers just don’t add up and explains why the labor market might not be as awesome The post Lies and Statistics: SchiffGold Friday Gold Wrap Podcast Dec. 9, 2022 first […]

To salvage its floundering CBDC, the eNaira, Nigeria's Central Bank just launched an all-out assault against physical cash in a country that is substantially cash-dependent.

Why the road away from the dollar will have many twists and turns.

Gitmo is still with us, and likely for bad reason.

The global economy is at an inflection point after being hit by various shocks over the past year. The biggest was induced by central banks as they stepped up their aggressive fight against inflation.

Silver attracts fresh buyers near the $22.55 region on Thursday and steadily climbs back closer to the overnight swing high during the first half of the European session. The white metal is currently placed around the $22.70-$22.75 area and seems poised to build on its intraday ascent.

Now starting to (but just a little).

In other words, because of its commodity price volatility attribute, gold might not be a perfect hedge against inflation in the short run, but works well as a long-term hedge against price inflation caused by the devaluation of fiat currencies from money printing.

These days, only 12% of Americans consider themselves wealthy, including just 29% of millionaires.

Big banks still pay next to nothing on savings, but their customers aren’t yet moving much money to higher-yielding alternatives.

As more properties flood the market, renters see a big dip in demand for vacation homes.

The NDAA includes $11.5 billion in new investments for the Pacific Deterrence Initiative, a program to build up in the Asia Pacific to confront China. The Pentagon has identified China as its main focus, and the NDAA includes investment in new technology research and development that US military leaders say is meant to counter Beijing.

The biggest U.S. banks are bracing for a worsening economy next year as inflation threatens consumer demand, according to executives Tuesday.

Equity Group Investments founder and chairman Sam Zell voiced his disapproval of the Fed's inflation strategy Thursday, telling "Cavuto: Coast to Coast" that Jerome Powell "missed the boat" on inflation, allowing "super-low" interest rates to exist for too long.

This is a complete guide to the devaluation of the US Dollar. Find out why the dollar is a terrible store of value in this in-depth post.

Two women — the first female Treasury secretary and the first Native American to serve as U.S. treasurer — now have their signatures on America’s currency.

Citizens can’t afford the government’s promises, past and present. Projecting interest cost of the national debt, plus government unfunded liabilities, it’s impossible for future generations to pay the debts incurred by their elders.

Expert investor Felix Zulauf joins Adam Taggart this week for an ultra-special interview to discuss where markets are headed as we enter 2023.

~ Today's Water Cooler ~

Developing nations may need to find as much as $2.5 trillion over five years to meet external debt-service costs as interest rates rise and poorer countries struggle to refinance borrowings, a Finance for Development Lab model shows.

David Pilling highlights clearly the inadequate measures Ghana’s government is enacting to shore up its finances (“Ghana’s rude awakening as tide of cheap money recedes”, Opinion, December 2). As he suggests, the country finds itself in the classic emerging market trap — owing too much in someone else’s currency when the global economic tide turns.

Gold prices in Pakistan surged to a record as people took refuge in the safe-haven metal on mounting concerns that the nation’s economic conditions will deteriorate further.

A staggering number of Nigerians love Bitcoin, but hate government cryptocurrency (CBDCs).

The key is employment. Thus far, the labor market has not come under any strain but there are signs that it is beginning to wobble. Should unemployment start to rise, as seems likely in 2023, credit card debt will deflate, and the savings rate will rise. In those circumstances, the U.S. and the global economy will be in dire straits (and U.S. consumers will not be getting their money for […]

Technology, innovation, fiscal dynamics and hidden slack in the global economy suggest inflationary pressures could prove transitory.

As The Fed tightens to tamp down on inflation in 2022, we are seeing a pattern. The US Treasury 10Y=2Y yield curve has sunk to -82 basis points, a -206% decline.

High energy prices and supply-chain disruptions will mean ongoing inflated prices in goods and services well into 2023, among other concerns.

Against this background of gradually declining but structurally higher inflation, the key question is what central banks will do if core inflation doesn’t return fully to target over the next 12 to 18 months. One option would be to keep policy rates high or higher for longer. The other option could be to become more flexible once inflation falls much lower. But it does suggest a return to […]

From a CPI point of view, I don't believe we will see rents decline even though the National Rent price from Apartment List shows that.

Global regulators set out their first guidance on Thursday to show banks how to apply existing capital rules to cover climate change risks that could lead to losses.

A little-noticed rule-making proposed by the Department of Defense, NASA and the General Services Administration last month would require federal contractors to disclose and reduce their CO2 emissions as well as climate financial risks. The rule would cover 5,766 contractors that have received at least $7.5 million from the feds in the prior year.

Transportation capacity continued to grow at a high rate during November with prices falling at the fastest rate on record, according to a monthly survey of supply chain executives released Tuesday.

See shells journey from dinner plates to docks as environmentalists and restaurateurs use oysters to boost local ecology.

Senate Banking Chair Threatens a Subpoena If Sam Bankman-Fried Doesn’t Show for Next Wednesday’s Hearing; Says SBF “Orchestrated a Coverup” By Pam Martens and Russ Martens: December 8, 2022 ~ The past 48 hours has brought major developments in the battle lines being drawn in the crypto wars. Let’s start with the unusual letter that Senator Sherrod Brown (D-OH) sent yesterday to Sam […]

Gold prices were flat on Thursday after tallying back-to-back gains as the recent rally again stalled out right around the $1,800 per ounce level.

Globally, people are experiencing inflation at levels not seen for decades as prices surge for essentials like food, heating, transport and accommodation. And though a peak could be in sight, the effects may yet get worse.

The number of Americans filing for jobless claims for the first rose to 230k last week (higher than the 226k the prior week) but it is the ongoing rise in continuing jobless claims that should be a worry for Americans (and 'cheer' for The Fed?).

Manhattan rents rose 2% in November, dashing hopes that prices would cool and forcing many renters to give up their leases or downsize, according to brokers.

The chairman said the agency has the basic disclosure and governance requirements to hold digital-asset firms accountable, although he did not address the fallout from crypto exchange FTX’s collapse. Crypto Markets Today is CoinDesk’s daily newsletter diving into what happened in today's crypto markets.

The Bank of Canada on Wednesday hiked its benchmark overnight interest rate by 50 basis points to 4.25%, the highest level in almost 15 years, and signaled the tightening campaign was near an end. "It was always a coin flip."

Credit Suisse on Thursday headed into the final stage of a 4 billion Swiss francs ($4.25 billion) cash call that it hopes will allow an overhaul to draw a line under years of scandals. Despite widespread market uncertainty, five bankers involved in Thursday's 2.2 billion-franc rights issue said they were confident investors would take up more than 90%...

As winter approaches, governments across Europe have been frantically drafting aid programs to protect their citizens from the surge in energy costs triggered by Vladimir Putin’s invasion of Ukraine. There are electricity price caps in France, gasoline discounts in Italy and heating-bill subsidies in Germany.

Bridgewater Associates founder Ray Dalio said the stock market could face further turmoil in the coming months as the Fed hikes interest rates to a "harmful" level.

For many investors, December has been a shocker in the stock market. After getting sucked in by a rousing seven-week rally, they’ve now had to watch as the S&P 500 posted the longest stretch of down days to begin a month since 2011.

The dollar edged up on Thursday, supported by a rise in U.S. Treasury yields, as investors weighed the outlook for Federal Reserve policy against the chances that high interest rates could lead to a recession. Next week brings a raft of major central bank decisions, including from the Federal Reserve, the European Central Bank and the Bank of England...

The Federal Reserve hasn’t had much success so far in wrestling down sky-high inflation, but its monetary tightening campaign is having a major impact in deflating asset bubbles that swelled during the pandemic.

U.S. stock futures rose ahead of the open Thursday as investors attempted to stymie this week's losing streak across equity markets from stretching into another day as rate jitters and recession chatter hamper a seasonally bullish period for Wall Street.

After household debt grew by the largest amount since 2007 in the third quarter, American consumers kicked off the fourth quarter by piling on even more debt. Consumer debt grew by another $27 billion in October, a 6.9% year-on-year increase. Americans now owe $4.73 trillion in consumer debt, according to the latest data released by the The post American Consumer Debt Continues Its Relentless […]

It’s time for our quarterly Q&A with Michael! Please support Michael’s important work via his Patreon page. Theme: NATO’s provocative role in the Crimea. If you are a Patron Plus supporter on Patreon, you will be able to register. Anyone upgrading to Patron Plus at least 24 hours prior to the event is invited. **Register Continue Reading The post Michael Hudson’s Patreon Q&A […]

Stocks have struggled in recent days due to some better-than-expected economic data and more hawkish talk from Fed officials. This has revived fears that the Federal Reserve could make a mistake and raise rates too high and keep them there too long, sparking a recession. In his podcast, Peter Schiff said the markets are worried The post Peter Schiff: The Markets Are Worried About the Wrong Fed […]

Why the dollar's demise is not around the corner.

It burned through most of its $700 million of investor cash. So now what?

"Russia’s decision to link gold to oil could bring gold back as a settlement medium and increase its intrinsic value sharply... Banks active in the paper gold market would face a liquidity shortfall."

One month ago, we sparked a frenzy across precious metals circles when we reported that a "mystery" buyer had bought some 300 tons of gold, roughly three quarters of what would be a record 399 tons of central bank gold purchases in the third quarter.

The Perth Mint sold 114,304 troy ounces (oz) of gold and 1,315,293 oz of silver in minted product form during November.

In the laboratory of history, great inflation followed by great disinflation opens the road to monetary regime change. Sometimes the road leads to a better place.

More than two-thirds of Americans are having a hard time affording groceries as food costs continue to soar, according to new data.

The Fed has signaled the terminal rate will likely be around 5% — we think an upper bound of 5% — reached in early 2023. To get there, the central bank will likely raise rates by 50 basis points at its December 2022 meeting, followed by two more 25-bp hikes in 2023. We then see it holding at 5% throughout the year. Markets have priced in a similar amount of tightening.

In 5 of the last recessions, industrial production was primarily a coincident indicator of recessions. In 1990 IP peaked one month after recession started and in 1980 IP peaked at the start of the recession.

The October Trade Deficit increased for the second month in a row to $78.2B. The Deficit had been getting help from exports out of the Strategic Petroleum Reserve, but the pull from the SPR has slowed in recent weeks. The current deficit is still well below the record set back in March. If March is The post TTM Trade Deficit Reaches New Record $982B first appeared on SchiffGold.

The Treasury added $175B in new debt during November, hitting the debt ceiling of $31.4T. New debt issuance was focused on the short end of the curve with $145B in Treasury Bills issued. As is typically the case when the debt ceiling is hit, the Treasury starts pulling from Non-Marketable debt to cover additional expenses. The post Annualized Interest Set to Exceed $700B By July, Up $400B in Two […]

"The historical record is clear: Gold-backed money is fully capable of delivering short-run stability and long-run prosperity. The Fed can’t." ~ David Brat & Alexander William Salter

By financing ballooning spending with short-term debt, the government failed to lock in record-low interest rates while it could. Now the piper has come to call.

US treasury holdings by China and Japan have been falling.

Spiralling debt in low and middle-income countries has compromised their chances of sustainable development, the head of UN trade facilitation agency UNCTAD has warned.

As the cost-of-living crisis continues, many are finding themselves to be struggling financially.

This has been a year of watershed moments in real estate, and not the good kind. The Housing Market Index, a closely watched industry metric that gauges the outlook for home sales, declined to 33 in November on a hundred-point scale, its lowest level in a decade, save for the first dystopian month of the pandemic. Anything under 50 spells trouble.

The US mortgage market is like Mussgorsky’s Pictures at an Exhibition. Where are the paintings are bad. US mortgage rates fell for a fourth week in a row, the longest such stretch of declines…

The senator is crafting legislation that would go beyond just trying to prevent the next FTX.

It’s the little engine that could … bring down Google and perhaps the human race. A tech company has developed a state-of-the-art AI chatbot so sophisticated that it could render search engines — not to mention countless jobs — obsolete.

Russian President Vladimir Putin warned on Wednesday that the threat of a nuclear war is "growing." Putin stressed that Moscow has not deployed nuclear arms in other countries, unlike the United States. Claiming his country has the "most advanced weapons," the Russian leader insisted he does not want to "wave them around."

Congressional sources tell The Dossier that there is a strong enough appetite in Congress, given the unanimously pro-war Democratic voting bloc, and the significant amount of Republicans who support the perpetual funding of the Zelensky government in Ukraine, to pass a bill by the end of next week that will deliver tens of billions of dollars into Kiev’s coffers.

On Tuesday the US State Department approved potential sale of M1A1 Abrams tanks along with associated ordinance and equipment for an estimated $3.75 billion, the US Department of Defense has announced.

If there is one point on which there should be no disagreement, it is this: for anyone to advocate terminating or suspending the Constitution is tantamount to a declaration of war against the founding principles of our representative government and the rule of law.

Here we are again in the final quarter of the year when thoughts turn to Thanksgiving and Christmas and… reviewing your financial house. Oh, that’s not on your list? Well, let’s put it there because financial issues cannot be on automatic pilot. Things change and you need to keep current. Here are 16 items you [...]

JPMorgan Chase, the Largest Federally-Insured Bank in the U.S. with Five Felony Counts, Says 10 Percent of its New Hires Last Year Had Criminal Histories By Pam Martens and Russ Martens: December 7, 2022 ~ If you’re the Chairman and CEO of a trucking company or air conditioner installer or a computer manufacturer (or thousands of other companies that don’t handle cash and have access to […]

A shrinking trade deficit was the primary reason GDP jumped in the third quarter. But that trade deficit relief is already reversing. The October trade deficit swelled to $78.2 billion, a 5.4% increase. It was the second straight month of trade deficit growth. As Peter Schiff pointed out in a recent interview, the trade deficit The post Trade Deficit Grows for Second Straight Month as Dollar […]

Beyond allegations of mismanagement and outright fraud, the collapse of the FTX cryptocurrency exchange reveals a more fundamental problem — the power of speculative manias fueled by central-bank easy money. Peter Schiff recently appeared on NTD Capital Report to talk about the collapse of FTX, saying ultimately it was the Federal Reserve’s fault. And it The post Peter Schiff: The FTX […]

Platypus interview on The Destiny of Civilization The destiny of civilization: An interview with Michael Hudson On July 15, 2022, Platypus Affiliated Society member D. L. Jacobs interviewed Michael Hudson to discuss his new book, The Destiny of Civilization: Finance Capitalism, Industrial Capitalism or Socialism (2022). An edited transcript follows. D. L. Jacobs: Can tell us Continue Reading […]

I mean, like within hours and days, rather than weeks and months. But the SPAC sponsors want to make some money.

Secretary Yellen, We’ve Got a “Staggering” Problem: New Report Shows Foreign Banks Have Secret Derivative Debt that Is “10 Times their Capital” By Pam Martens and Russ Martens: December 6, 2022 ~ U.S. Treasury Secretary Janet Yellen has the dual role of Chairing the Financial Stability Oversight Council (F-SOC), whose role is to provide “comprehensive monitoring of the stability of […]

After adding a historically high amount of gold to reserves in the third quarter, central banks kicked off Q4 buying more gold. According to data compiled by the World Gold Council, central banks globally added another 31 tons of gold to official reserves in October. Total central bank gold holdings are now at the highest The post Central Banks Start Q4 Buying More Gold first appeared on […]

Peter Schiff recently appeared on Real America with Dan Ball to talk about the economy, energy prices, and inflation. Peter said if you think inflation was bad this year, wait until next year with a much weaker dollar. Dan set the interview up with a list of tech firms set to lay off employees. He The post Peter Schiff: You Think Inflation Is Bad Now? Wait Until Next Year! first appeared on […]

Automakers need to do some serious navel-gazing about price levels and going upscale, if they want to sell more vehicles.

Alhambra CEO Joe Calhoun explains why investors should follow the advice of the ancient Greeks and their Delphic Maxims.

Have you ever had a gut feeling that the labor reports put out by the Bureau of Labor Statistics are hinky? If so, trust your gut. Based on the headline numbers we got in the November Non-Farm Payroll report, the labor market is strong. The economy added 263,000 jobs last month, well above the 200,000-job The post Government Jobs Numbers Don’t Add Up first appeared on SchiffGold.

Note: This will be my last full commentary for 2022. I will spend the month of December on research for next year, visiting with family, and taking some much-needed time off. I will still be watching markets, as will all the other members of the Alhambra team and if something happens which requires me to [...]

"Nothing goes to heck in a straight line." That’s how functional markets adjust to a new reality: Higher inflation, higher rates.

Wolf Richter in an interview on these and other delectable topics on This Week in Money.

By Jack Rasmus Copyright 2022 Probably the most important US labor event of 2022 has been the 115,000 US railroad workers and their unions attempt to bargain a new contract with the super profitable Railroad companies. As of December 2, 2022, however, that negotiations has not turned out well for the workers. The US government—the

Yesterday, US Senate passed a bill quickly to prevent US railroad workers from going on strike. It then passed a second bill providing workers 7 paid sick leave days (they had none and had proposed 15 in negotiations). In the following two 15 minute radio interviews of friday, December 2, I explain how the railroad

Higher interest rates, for longer.

Keeping an eye on stuff, including dollar liquidity swaps and Primary Credit.

With this kind of demand, it’s hard to imagine that inflation will just vanish.

Questions from almayadeen TV, Lebanon. Mohammad Itmaizeh 1 – In light of the conditions that Europe is experiencing, in terms of high energy prices and the repercussions on the industrial sector, like the closure of factories and the high cost of production. In your opinion do European countries have the capacity and resources to prevent Continue Reading The post EU Pressures first appeared on […]

International events and a strong U.S. dollar and not decimating foreign markets as you would expect. And things look even better if viewed through the lens of local currencies. Alhambra CEO Joe Calhoun breaks down the Currency Illusion.

Commodities and Gold are important parts of any portfolio. Steve Brennan and Alhambra CEO discuss current trends as well as what to own and when.

When we think about the challenges facing an investor today, the big problems, the things we worry about that could cause a lot more harm than some interest rate hikes, are mostly outside the United States. China is prominent this weekend because of demonstrations against their zero-COVID policies. The Chinese people appear to be pretty [...]

Effective investing is changing. You can no longer just buy the S&P 500 and be done. Going forward you have to have a strategy and stock picking will become much more essential. Steve Brennan and Alhambra CEO Joe Calhoun make the case.

The list of problems with the crypto space is long and troublesome. Not to mention the Federal Reserve’s involvement in the crypto collapse. Steve Brennan and Alhambra CEO Joe Calhoun look lay it out.

Listen to my latest 20 min. radio interview of November 23, 2022 on economic issues of the day, including latest Fed minutes for November and future trajectory of rate hikes; shortages of various oil fuels this winter (diesel, home heating, natural gas, etc.) and pass through of costs into prices by monopolistic US corporations; price

Every great portfolio needs a volatility control. Steve Brennan and Alhambra CEO Joe Calhoun discuss the need for Real Estate as part of overall allocation.

For my analysis of the key results of the recent US midterm Congressional elections on November 8, listen to my November 18 Alternative Visions radio show–i.e. why there was no ‘red wave’ (as I predicted publicly on Nov. 5 there wouldn’t be); why the election 2022 was virtually a repeat of 2020 outcomes; and what

Cross posted from La Tribune Diplomatic International. French version Mohsen Abdelmoumen: Your analysis of Mesopotamian times and the wise rule of Emperors embodied by the practice of the Jubilee (compared to the predation of oligarchies) resonate with the Islamic economic theory which forbids riba (meaning usury) and imposes that banks and creditors share the risk Continue Reading The post War […]

The Real Progressives Live with Michael Hudson on The Destiny of Civilization [00:00:06] Luke Parcher: All right. For those who might not know me, I’m Luke Parcher, I’m a student and activist. I volunteer with Real Progressives. I’m on our leadership team and I also do a show on Sundays covering politics and current events, Continue Reading The post The Rentier Economy is a Free Lunch […]

The following are a few of my reflections and predictions on the outcome of the 2022 midterm elections coming up I shared with my Twitter followers. My prediction #1: Dems lose 2-4 net Senate seats: Arizona, Nevada, Georgia, New Hampshire. Repubs gain 8-12 US House seats at minimum. After election, Repubs policy turns to ‘austerity’,

Listen to my two latest 15 min. radio interviews commenting on last week’s jobs numbers, the Fed’s latest rate hike & its global consequences, US GDP 3rd Qtr,, how the oil companies keep energy inflation rising, and the new forces coming online (productivity collapse & rising unit labor costs) ensuring inflation will remain high. Why

In my October 31 Alternative Visions Radio Show I reflect on the current state of the war in Ukraine–military strategy, economic sanctions & geopolitical. Also initial comments on the just released preliminary US GDP numbers for July-Sept. 2022. To Listen Go to: https://alternativevisions.podbean.com/e/alternative-visions-reflections-on-the-war-in-ukraine-us-gdp-global-economic-update/ SHOW […]

Germany has become an economic satellite of America’s New Cold War with Russia, China and the rest of Eurasia. The article this talk was based on: Germany and other NATO countries have been told to impose trade and investment sanctions upon themselves that will outlast today’s proxy war in Ukraine. U.S. President Biden and his Continue Reading The post Germany’s position in America’s New […]

Listen to my October 21, 2022 Alternative Visions radio show for a different perspective on the growing global economic and political crises. TO LISTEN GO TO: https://alternativevisions.podbean.com/e/alternative-visions-personalities-behind-the-crises/ Show Announcement Today’s show takes a different emphasis than in the past by focusing on key personalities and their roles in the growing […]

A couple of my radio interviews (10-18 min.) of this past week: Oct. 19 Critical Hour Radio show: Condition of global supply chains and factors (containers, insurance, price-gouging, commodities speculation, $ appreciation) driving supply side inflation; US $ at heart of global economic instability and driving global inflation; role of Fed in the process. […]

The latest CPI inflation report is dissected and analyzed, showing US inflation is ‘hot’ and chronic. The report ensures another Fed 75 pts rate hike early November and likely another thereafter. Nonetheless Fed rate hikes will have only partial effect on US inflation, although the Fed’s unprecedented pace and size of interest rate hikes is

Some follow up comments to my appearance on the Ralph Nader show. I am looking forward to our next Q&A session with Patreon Plus supporters this Friday. Photo by John Cameron on Unsplash The post We Do Read Comments: Re Nader first appeared on Michael Hudson.

Cross-posted from Pepe Escobar’s The Cradle. It is impossible to track the geoeconomic turbulence inherent to the “birth pangs” of the multipolar world without the insights of Professor Michael Hudson at the University of Missouri, and author of the already seminal The Destiny of Civilization. In his latest essay, Professor Hudson digs deeper into Germany’s Continue Reading The post […]

The reaction to the sabotage of three of the four Nord Stream 1 and 2 pipelines in four places on Monday, September 26, has focused on speculations about who did it and whether NATO will make a serious attempt to discover the answer. Yet instead of panic, there has been a great sigh of diplomatic Continue Reading The post The Euro Without German Industry first appeared on Michael Hudson.

RALPH NADER RADIO HOUR EP 465 TRANSCRIPT, September 17, 2022. Tom Morello: I’m Tom Morello and you’re listening to the Ralph Nader Radio Hour. Steve Skrovan: Welcome to the Ralph Nader Radio Hour. My name is Steve Skrovan, along with my co-host, David Feldman. Hello, David. David Feldman: Hello, Steve.
Steve Skrovan: And of course, it’s Continue Reading The post On the Federal Reserve […]

Economist Michael Hudson joins Multipolarista host Ben Norton to discuss partial student debt relief in the US, inflation and the Fed, disaster capitalism in Ukraine, and China’s challenge to the petrodollar. Multipolarista · Economist Michael Hudson on debt relief, inflation, Ukraine disaster capitalism, petrodollar crisis Transcript BEN NORTON: Hey everyone, this is Ben Norton of Continue […]

RT, 8 Aug, 2022 05:05, HomeBusiness News Western sanctions are good for Moscow – US economist A former Wall Street analyst says the Russian economy is being made self-sufficient The economic war unleashed by the West against Russia has backfired and may bring the country much good, former Wall Street financier Michael Hudson has told Continue Reading The post Moscow’s New Found Independence […]

Interview of Michael Hudson by Andrei The Saker, August 2022 Russian transcript Transcript Key: ATS = Andrei The Saker; MH = Michael Hudson ATS Well first of all, Michael, a huge, huge thank you for agreeing to this conversation. It’s a big pleasure for me to have you here, it’s a big honour too, and Continue Reading The post The Big Context first appeared on Michael Hudson.

CounterPunch Radio – _July 15, 2022 – Michael Hudson ERIC DRAITSER: Hello and welcome to CounterPunch Radio. My name is Eric Draitser, thanks so much for tuning in, and coming back to the show. First-time listeners finding the show, welcome aboard. Thank you so much, we really appreciate your support. If you want to support Continue Reading The post Counterpunch to Economic History first […]

As in a Greek tragedy whose protagonist brings about precisely the fate that he has sought to avoid, the US/NATO confrontation with Russia in Ukraine is achieving just the opposite of America’s aim of preventing China, Russia and their allies from acting independently of U.S. control over their trade and investment policy. Naming China as Continue Reading The post American Diplomacy as a […]

Transcript of Interview on The Left Lens with Danny Haiphong May 25th, 2022 DANNY HAIPHONG: Good afternoon, everyone. Happy Wednesday, May 25th, welcome to the stream, to another left lens. Today we have a very special guest so as you’re coming in make sure you are liking the stream sharing it, make sure that you Continue Reading The post Finance Capitalism’s Self-Destructive Nature first […]

Macro and Cheese pod, July 9 2022.  Michael Hudson A central tenet of the World Bank from the beginning is to convince countries not to grow their own food, but to create plantation agriculture to prevent family-owned farming of food, to grow plantation export crops and they become dependent on the United States for their Continue Reading The post International Trade and MMT with Keen, Hudson […]

Why it lacks resilience, and What will take its place Paper presented on July 11, 2022 to The Ninth South-South Forum on Sustainability. THE COLLAPSE OF MODERN CIVILIZATION AND THE FUTURE OF HUMANITY. The greatest challenge facing societies has always been how to conduct trade and credit without letting merchants and creditors make money by Continue Reading The post The End of Western […]

A presentation to the Building bridges around David Graeber’s legacy conference, Paris, Friday July 7, 2022 It may seem strange to invite an economist to give a keynote speech to a conference of the social sciences. Economists have been characterized as autistic and anti-social in the popular press for good reason. They are trained to Continue Reading The post From Junk Economics to a False […]

  Economist Michael Hudson on inflation and Fed plan to cut wages: A depression is coming Economist Michael Hudson explains the inflation crisis and US Federal Reserve’s “austerity program to reduce wages” and boost unemployment. He warns a “long depression” is coming, due to the new cold war on Russia and China. https://www.youtube.com/watch?v=-AJwMvCxwm0   Economist Continue […]

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Dear Zero Hedge readers and blogger fans, it is time to move on......to our new home: www.zerohedge.comFor a little over 6 months blogger has served us well, and yet it reached its limitations some time ago. Our new website, in addition to all currently existing features, now has a full RSS feed, a Contributors section, a complete term Glossary, and a full Forum for reader initiated content, and […]

Hey Ron, didn't realize your new position as a contributing editor on CNBC came with the contributing title of "Portfolio Manager." Didn't Stevie put a one year kibbosh on that? But I digress... And in all honesty I am surprised that you seem to have the correct spin on things (as per letter below from Jim Cramer's failed media experiment TheStreet). When you say: I'd prefer that regulators look […]

After numerous posts on this blog discussing speculation of assorted forced buy ins, it seems that this phenomenon is quite factual and quite pervasive among the asset management community. As Zero Hedge has noted previously, forced buy-ins are a critical issue as it leaves shorts at the mercy of their securities lenders and repo desks (most of which are TARP recipients and thus beneficiaries of […]

From an interview earlier with NYSE's Larry Leibowitz, who is surprisingly vocal against Flash trading. Larry - since the NYSE does not engage in Flash trading, can you please indicate whether or not the SLP program provides advance notice to Goldman Sachs ala Direct Edge's ELP program. Regardless, the escalation in the ECN wars is starting and should be a very interesting one to follow, […]

It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR […]

"I write out of concern that the integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market, and use electronic trading strategies to profit from that information at the expense of other investors."Full letter here:Schumer Letter

Damage control... Or is Goldman a little worried what Direct Edge may disclose.From the appended Schumer piece on Bloomberg:“Goldman Sachs believes high-frequency trading should have an accompanying obligation to provide liquidity, and be subject to appropriate regulatory oversight,” Canaday said.Ed, we have been giving you the chance to provide your side of the story for months. Please take […]

The mythical "TRADER - The Documentary" is finally available on You Tube. Relevant "full frontal" insights on the making of a hedge fund legend, and a paleolithic market dominated by monochrome PCs (what, no Bloomberg?), running to the municipal library for that 10-K, and no Flash orders frontrunning every trade. Part 1, and related series (2-7) are on You Tube.hat tip j.m.

Bearish bets made impossible, compliments of UBS. Either that, or UBS' recently upgraded (with i7 chips of course) computers just cant handle the basis calculations. Either way, is something very fried with ETFs going on behind the scenes? IMPORTANT NOTICE: Inverse, Leveraged and Inverse-Leveraged Exchange Traded Funds are no longer available for new or additional purchases at UBSEffective July […]

Administration looking for Chinese help to narrow trade gap and boost US jobs.Advertisers are getting cheaper rates than a year ago on television commercials.Aetna 2Q profit dropped to $346.6M due to greater commercial expenses and cuts full year forecast.Asian markets were higher Monday on hopes for further earnings recovery, Nikkei hits 10,000 mark.China's new small-company stock exchange gets […]

Tenacious G - Is Goldman Sachs evil? Or really good? (NY Mag)Bernanke feared a second great depression; he may still very well get it (WSJ)Europe braced for rising credit card defaults (FT)Loans by U.S. banks shrink as fear lingers (WSJ)Credit crunch part deux (Merk Mutual Funds)Real yields highest since 1994 aid record debt sales (Bloomberg)Ryanair plunges on outlook for fares, earnings […]

Zero Hedge, in collaboration with David Rosenberg, Chief Economist & Strategist, Gluskin Sheff + Associates, Inc., is pleased to release the attached analysis "The End Of The End Of The Recession." It is our hope that this piece will provide some badly-needed perspective on "the recession is over" debate, a topic that has become as one-sided as it is wrong-headed. Our purposes is to promote […]

Some interesting stuff in John Mauldin's latest piece. We'll include some pertinent quotes along with our thoughts.China is growing by about 8% a year, which is amazing on the surface of it, as their exports are down about 20% (more in some sectors). How can that be? I continually read about how China is going to lead the world out of its global funk. And 8% growth in GDP does seem pretty strong. […]

Submitted by John Bougearel of Structural Logic

Must read: Fast-on-the-draw trades need spot of marshalling (FT, h/t Joe)Roubini Op-Ed on Bernanke: The Great Preventer (NYT)Lennar signals fleeting buildling rally as buyers flee (Bloomberg)JP Morgan to raise banker salaries (FT)The man spreading false rumors about Harman and Textron takeovers (that fooled fast-money's Najarian) found dead in suicide (Bloomberg)Chinese steel executive beaten to […]

When the former head of product development in the electronic client solutions group at none other than JP Morgan, Carl Carrie, was last quoted on Zero Hedge, he had some very nasty words for High Frequency Trading. Today, in a podcast transcript by algotradingpodcast Carl shares much more light in just why any reform movement against HFT and PT in general will be met by a huge pushback by […]

Zero Hedge will attempt to categorize all the relevant players in FlashTradingGate. This is the initial focus of Senator Charles Schumer's recent campaign for market equality and transparency. As we will undoubtedly miss critical connections between these and other pertinent industry players, we solicit readers' insight as we develop this org chart: we invite readers to send emails to: […]

Great recap piece in the New York Times on whether or not Wall Street is picking the pockets of "non-club" investors (read - the guys who do not generate 80% returns with a Sharpe > 5.0 - can someone explain how risk/return works again). The consensus sure looks good for class action lawsuit lawyers. The piece also recognizes the tremendous contribution that Zero Hedge's readership has had in […]

It seems 1-2's and Marla's post earlier could not have come at a more opportune time. In a presentation by Andrew Gluck of Advisor Products, the author touches on some starkly comparable points (and, usefully, those with acute ADHD may find this presentation a tad more palatable, hehe, just kidding Marla) in the context of the epic paradigm shift occurring in the media world. Zero Hedge […]