The Fed is aggressively raising interest rates, although inflation is contained, private debt is already at 150% of GDP, and rising variable rates could push borrowers into insolvency. So what is driving the Fed’s push to “tighten”?
The post Fox in the Hen House: Why Interest Rates Are Rising appeared first on BSNEWS.
Aggregate private household debt, 1990-2014. Consumer debt is measured on the left-hand scale; mortgage debt on the right-hand scale (source).by Gaius Publius"In the modern economy, most money takes the form of bank deposits.
The main changes I do expect from Brexit are a long overdue material shift in the power balance away from London and its elite and back to the once working class regions of the UK. These have been the victims of a globalisation that, when it was first championed by Thatcher and then Blair, was supposed to have either no victims at all, or “losers” who could be easily compensated by the “winners”.
The post What Next After Brexit? appeared first on BSNEWS.
But how could deflation be threatening the globe when the central banks have pumped many trillions into the world economy?
Initially, quantitative easing (QE) – instituted by most central banks worldwide – actually causes DEFLATION.
In addition, governments on both sides of the Atlantic have encouraged bank manipulation and fraud to try to paper over their problems.
As gold broke below the psychologically important level of $1,200 an ounce late in December of 2014, the mainstream financial media burst with headlines like this one from Marketwatch: “Gold’s Safe-Haven Role is Over.” The Nobel prize winning economist from the New York Times, Paul Krugman, penned a wicked missive on the ‘barbarous relic’ by invoking Key
