Thursday, August 22, 2019

11 Reasons Why So Many Experts Believe That A U.S. Economic Crisis Is Imminent

by Michael Snyder, The Economic Collapse Blog:

The numbers are telling us that we have never been closer to the next recession than we are right now.  The storm clouds that were gathering on the horizon are now directly above us, and suddenly the mainstream media is filled with storiesabout when the next recession will begin and the effect that this may have on President Trump’s chances of winning in 2020.  In fact, there has been so much chatter about this that even President Trump is talking about it.  All over television, experts are breathlessly speculating about when the coming recession will begin, and they are dispensing lots of advice about how people should be preparing for it.

Your “Cash” Is Currency…. My “Cash” Is Gold And Silver.

by David Schectman, Miles Franklin:

J.P. Morgan Private Bank published an interesting investment-strategy note in July. It was titled “Is the dollar’s “exorbitant privilege” coming to an end?” It explored the US dollar’s longstanding status as the world’s dominant reserve currency, which is waning. The conclusion reached was “we believe the dollar could lose its status as the world’s dominant currency (which could see it depreciate over the medium term) due to structural reasons as well as cyclical impediments.” – Adam Hamilton

MORE PROTESTS THIS WEEKEND IN HONG KONG

by Harvey Organ, Harvey Organ Blog:

JACKSON HOLE MEETING THIS FRIDAY AND THUS A REASON TO WHACK THE PRECIOUS METALS: GOLD DOWN $11.20 TO $1502.00//SILVER DOWN 21 CENTS TO $16.96//MORE PROTESTS THIS WEEKEND IN HONG KONG//INVESTORS ARE TAKING THEIR CASH OUT OF HONG KONG//CASS FREIGHT INDEX DOWN FOR 8TH STRAIGHT MONTH//IRANIAN OIL CARGO SHIP SET FREE IN GIBRALTAR//MORE EPSTEIN STORIES FOR YOU TONIGHT AS WELL AS OTHER SWAMP STORIES

A Rothbardian Take on Negative Interest Rates

by Robert P. Murphy, Mises:

Joe Weisenthal, who made his name in financial circles while an editor at Business Insider from 2008–2014, has been wondering aloud on his popular Twitter account why so many analysts think it’s weird for the world to be experiencing negative interest rates. Since Weisenthal has collected his thoughts into a recent article at Bloomberg, it’s worthwhile to analyze them from a Rothbardian perspective.

As we’ll see, Weisenthal is fuzzy on several key distinctions, but his basic intuition does serve to illustrate a problem with the conventional understanding of (fractional reserve) banking. Specifically, Weisenthal is right to think that rich people should have to pay to warehouse their wealth, but he’s wrong to think that this phenomenon should be classified as “negative interest rates.”

Is next week’s Jackson Hole meeting where the Fed will seek to create the new cashless system built on negative interest rates?

by Kenneth Schortgen, Shotgun Economics:

While the world chokes on $15 trillion of debt bound to negative interest rates, the Federal Reserve has suddenly been laying down hints that they too are in preparation for bringing bond yields down below 0.

Former Federal Reserve Chairman Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg reported Tuesday.

Negative Interest Rate Absurdity and How It Screws Up the Economy (Video)

by Peter Schiff, Schiff Gold:

Negative-yielding debt surged to over $15 trillion earlier this month. This pile of negatively-yielding paper includes government and corporate bonds, along with some euro junk bonds.

In a recent episode of the Wolf Street Report, Wolf Richter called this “NIRP absurdity.” And it could be coming to America.

Negative interest rates started out as a short-term emergency experiment during the Great Recession. Now it has turned into the new normal. How will this end?

“Horror” In Ghana As A Third Of Banks Shutter, Sparking Unprecedented Bank Run

from ZeroHedge:

It’s bad enough that drought-like conditions and rapid population growth have stoked a shortage of water and other vital resources in Ghana, a country that boasts one of the fastest growing economies on Earth (if it is still poor). But a banking crisis is just now roiling the country’s economy, and has wiped out $1.6 billion.

One couple, two of some 70,000 investors who were impacted by the shuttering of some 23 savings and loan companies – about one-third of banks in the country – and a run on the country’s asset managers, described to Bloomberg how they deposited money in a short-term investment product, intended to help save money for the wife to finish her economic Phd., only to discover they may never get the money.