GDP
by
Chris Martenson
Executive Summary
- The debt bomb waiting to explode is truly staggering in size
- Key warning signals we’re approaching a late cycle market crash
- The Fed’s aggressive actions belie its fear that the system is extremely sick
- How to use the time left to be on the right side of the coming wealth transfer
If you have not yet read Part 1: The End of Money , available free to all readers, please click here to read it first.
The Fed is now flat-out lying to us.
Jerome Powell insists that the Fed is not printing more money, is not engaging in QE, and is not directly intervening to make stocks go higher in price. But none of this is true.
In addition, the Fed has reversed course and is steadily cutting rates. This even as the employment and wage data (if you believe them) have been strong of late.
So what gives? What could be causing this?
Hundreds of billions of dollars, printed and injected at a faster pace than in the depths of the Great Financial Crisis is not exactly a comforting sign.
I am quite certain that something very big is very broken in the background.
Deutsche Bank might be failing. That’s a distinct possibility here. Or it could be massive funding flow reversals from… (Enroll now to continue reading)
A Tower of Debt Begins to Lean
PREVIEW by Chris MartensonExecutive Summary
- The debt bomb waiting to explode is truly staggering in size
- Key warning signals we’re approaching a late cycle market crash
- The Fed’s aggressive actions belie its fear that the system is extremely sick
- How to use the time left to be on the right side of the coming wealth transfer
If you have not yet read Part 1: The End of Money , available free to all readers, please click here to read it first.
The Fed is now flat-out lying to us.
Jerome Powell insists that the Fed is not printing more money, is not engaging in QE, and is not directly intervening to make stocks go higher in price. But none of this is true.
In addition, the Fed has reversed course and is steadily cutting rates. This even as the employment and wage data (if you believe them) have been strong of late.
So what gives? What could be causing this?
Hundreds of billions of dollars, printed and injected at a faster pace than in the depths of the Great Financial Crisis is not exactly a comforting sign.
I am quite certain that something very big is very broken in the background.
Deutsche Bank might be failing. That’s a distinct possibility here. Or it could be massive funding flow reversals from… (Enroll now to continue reading)
by
Adam Taggart
by
Adam Taggart
Over the past decade, the world’s central banks have distorted the price of money by bringing interest rates to record lows.
With credit so cheap, asset prices have risen dramatically as companies and governments have borrowed to the hilt.
On top of all that, it takes energy for an economy to function and conventional economists have assumed energy away. The debt predicament would be hard enough on its own. Without sufficient energy it’s impossible to solve, and mainstream economists cling to absurd notions of how the world works.
To discuss this massive problem and propose some potential solutions is Steve Keen, professor of economics at Kingston University in London and author of Debunking Economics.
Click the play button below to listen to Chris’ interview with Steve Keen (59m:55s).
Other Ways To Listen: iTunes | Google Play | SoundCloud | Stitcher | YouTube | Download |
Steve Keen: Economists Have Left Out Energy!
by Adam TaggartOver the past decade, the world’s central banks have distorted the price of money by bringing interest rates to record lows.
With credit so cheap, asset prices have risen dramatically as companies and governments have borrowed to the hilt.
On top of all that, it takes energy for an economy to function and conventional economists have assumed energy away. The debt predicament would be hard enough on its own. Without sufficient energy it’s impossible to solve, and mainstream economists cling to absurd notions of how the world works.
To discuss this massive problem and propose some potential solutions is Steve Keen, professor of economics at Kingston University in London and author of Debunking Economics.
Click the play button below to listen to Chris’ interview with Steve Keen (59m:55s).
Other Ways To Listen: iTunes | Google Play | SoundCloud | Stitcher | YouTube | Download |
by
Adam Taggart
by
Adam Taggart
by
Chris Martenson
Executive Summary
- China’s critical role in keeping the party going (and why China is in a weaker position this time)
- Despite current stock prices, the economic data is awful and fast getting worse
- A recession is near-unavoidable at this point
- What to do if you’re not in the top 0.1%
If you have not yet read Part 1: It’s 2016 All Over Again. Or Is It?, available free to all readers, please click here to read it first.
I know that it seems as if the US equity markets cannot ever go down and, truthfully, those indexes receive a ton of help from the Fed, the media, and from corporate buybacks.
The trouble, as always, when it begins will not be detected in the large, successful companies first. Amazon and APPL will be among the last to go down.
The trouble will start at the outside and work its way inwards. This “outside in” phenomenon is pretty robust and it has not yet been repealed by the interventionistas at the Fed.
In the US we might look to the small cap stocks to give way first, and I think they have. It’s in that universe where we will find an outsized majority of the zombie companies.
From a fundamental standpoint the small caps are a certified balance sheet mess. Their net debt has been on a 40-degree, ruler-straight rise since 2010 even as their EBIDTA has risen at only a 10-degree trajectory. The current gap is eye popping.
This is a huge increase in debt, and it makes these companies especially vulnerable to any economic downturn or rise in interest rates.
Accordingly, while all eyes are on the Nasdaq powering to a brand new all time high, the small caps in the Russell 2000 are definitely not making new highs and seem to be sneaking out the back door.
If you are looking for a place to short US equities at the index level, the small caps are the …
Why This Better Work
PREVIEW by Chris MartensonExecutive Summary
- China’s critical role in keeping the party going (and why China is in a weaker position this time)
- Despite current stock prices, the economic data is awful and fast getting worse
- A recession is near-unavoidable at this point
- What to do if you’re not in the top 0.1%
If you have not yet read Part 1: It’s 2016 All Over Again. Or Is It?, available free to all readers, please click here to read it first.
I know that it seems as if the US equity markets cannot ever go down and, truthfully, those indexes receive a ton of help from the Fed, the media, and from corporate buybacks.
The trouble, as always, when it begins will not be detected in the large, successful companies first. Amazon and APPL will be among the last to go down.
The trouble will start at the outside and work its way inwards. This “outside in” phenomenon is pretty robust and it has not yet been repealed by the interventionistas at the Fed.
In the US we might look to the small cap stocks to give way first, and I think they have. It’s in that universe where we will find an outsized majority of the zombie companies.
From a fundamental standpoint the small caps are a certified balance sheet mess. Their net debt has been on a 40-degree, ruler-straight rise since 2010 even as their EBIDTA has risen at only a 10-degree trajectory. The current gap is eye popping.
This is a huge increase in debt, and it makes these companies especially vulnerable to any economic downturn or rise in interest rates.
Accordingly, while all eyes are on the Nasdaq powering to a brand new all time high, the small caps in the Russell 2000 are definitely not making new highs and seem to be sneaking out the back door.
If you are looking for a place to short US equities at the index level, the small caps are the …
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