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No Fed Rate Hike In September - Goldman Sachs

The market’s initial reaction signals rising expectations of a September rate hike but, as Goldman’s Jan Hatzius explains, with a number of business surveys in hand, our preliminary read on the August Current Activity Indicator is +2.8%, in line with the July figure. So they continue to expect the FOMC to keep policy rates unchanged at the September 16-17 meeting.

Preparing for a Potential Economic Collapse in October

When debt reaches the level that it cannot be repaid, a major re-set of some sort must take place. The major economies of the world have exceeded that point & the debt problem is no mere anomaly that can be papered over. It is, instead, systemic. There must be a major forgiveness of debt, a default, or an economic collapse, or some combination of the three.

Will the Fed Have to Save Emerging Markets with QE4?

As emerging markets and nations attempting to defend their currency pegs to the USD sell U.S. Treasury bonds (which have been held as foreign exchange reserves), the yields on the Treasuries rise as a matter of supply and demand. As supply increases, sellers must offer higher yields to entice buyers. This dynamic undermines both the emerging markets and the U.S.

China Stands Ready to Re-Inflate Bubble: Michael Kosowan

Will China, the “engine” of the world’s great economic machine, come chugging to a halt? Not likely. In the weeks ahead, China is likely to experiment with cutting interest rates and further devaluing its currency in order to stabilize the stock market. They may shuttle the bad debt off to warehouse-like institutions while they re-inflate their markets.

5 Trends That Are Shredding the Global Economy

In the wake of the Global Financial Meltdown of 2008-2009, central banks launched monetary stimulus programs aimed at pumping money into the economy. The stated goals of these stimulus programs were 1) boost employment and 2) generate enough inflation to stave off deflation, which is generally viewed as the cause of financial depressions.

Why QE4 Is Inevitable - What could turn Sentiment more Positive?

According to Deutsche, and soon according to virtually all sellside strategists who are slowly but surely grasping the significance of what we have been warning for month on end, QE4 is inevitable. The only problem is that when the Fed pivots from “imminent rate hike” to QE4, it will loose the last shred of credibility it had left. The Fed is now completely trapped.

Lies You Will Hear As The Economic Collapse Progresses

Ever since the derivatives disaster, there has been no end to the absurd & ludicrous propaganda coming out of mainstream financial outlets & as the economic collapse situation becomes worse, the propaganda will only increase. Its a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare while the system crumbles.

Crashing Inflation Expectations Suggest Imminent Launch Of QE4

Summarizing it all: The last three times inflation expectations tumbled this low, the Fed was about to launch QE1, QE2, Operation Twist and QE3. And the Fed is now expected to hike rates in less than a month even as inflation expectations are the lowest since Lehman? The Fed is damned if it hikes rates & its credibility is damned if it launches QE4. Good luck.

Global Markets to Fed: No Rate Hike, Strong Dollar Is Killing Us

There are many reasons for global markets to melt down, but one that doesn’t get enough attention is the strong dollar. The USD has already strengthened by 20%. The damage delivered by the rising dollar has been severe; a move higher from here might prove fatal to emerging markets and faltering U.S. corporate profits.

Central Banks Have Become A Corrupting Force

The US government has a “plunge protection team” consisting of the US Treasury & Federal Reserve. The purpose of this team is to prevent unwanted stock market crashes. If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? If central banks cannot properly conduct a monetary policy, how can they conduct an equity policy?

The Fed Is Bluffing... Interest Rates Won't Rise in 2015

The minutes of the most recent Fed meeting showed Yellen and team still won’t pull the trigger on interest rates hike until certain unspecified conditions are met. Well, guess what… Conditions will never be met. Commodities are plumbing record lows – most notably oil and “Dr. Copper,” widely seen to signal a deteriorating economy worldwide. That’s why Ms. Yellen is reluctant to raise rates.

When Will The Fed To Panic & Bail Out The Market Once Again: BofA Explains

Short-term, markets seem intent on forcing either the Fed to pass in September, or the Chinese to launch a more comprehensive and credible policy package to boost growth expectations. Alternatively, a credit event in commodities may be necessary to cause policy-makers to panic. Markets stop panicking when central banks start panicking. Make sure to have a lot of gold and silver.

Here’s What Happens When Central Banks Run Out of Ammo

Governments and central banks are arrogant to think they can solve any problem by printing and borrowing money. Their arrogance will eventually cause “the biggest banking crisis in world history.” The next downturn could further expand Fed bond holdings, but with the central banks balance sheet already exceeding $4 trillion, there are limits to how much more the Fed can buy.

Keeping the Low Interest Rates Bubble-Boom Going

A normalization of interest rates, after years of excessively low interest rates, is not possible without a likely crash in production and employment. If the Fed goes ahead with its plan to raise interest rates, times will get tough in the world’s economic and financial system. Why then do the decision makers at the Fed want to increase rates?

From Crisis To Confiscation - Where Do I Store My Wealth?

Much of the world has gone on a massive spending spree & has, in effect, used a credit card to do so. The economic crisis, when it hits, will be sudden & will be devastating. Everyone in those jurisdictions will be negatively impacted, but those who have internationalised their wealth will fare best. When the dust settles, they will be the ones who are in place to recover & rebuild.

How Fast Are We Approaching A Global Deflationary Crisis?

Describing Crisis – needs to relate all of these elements together – policy failure, debt, imbalances, energy. Each element is causatively connected to the others but sometimes in a time lagged way which obscures the relationships. Together these elements are bringing about what some observers are calling “secular stagnation”.

Don't Look Now, But The Subprime Auto Bubble May Be Bursting

Losses on car loans taken out by bad-credit borrowers are continuing to climb, thanks in part to the flood of rookie auto finance companies that have entered the market in recent years. You can see the rise in subprime auto borrowers struggling to make car payments in monthly data on bond deals sold on Wall Street.

A Major Cause of the Financial Crisis is Coming Back

One of the biggest causes of the financial crisis is back. Lenders aren’t giving people subprime loans to buy houses anymore. They’re lending to people to buy cars & to buy stuff on their credit cards. If a big financial institution takes a big risk and it pays off, it keeps the profit. If it takes a big risk and blows up the financial system, the government will bail it out…like it did in 2008.

Did You Know - The Government Is The Destroyer of Jobs?

Conventional economists and pundits are puzzled why jobs growth has been so anemic in this “recovery.” Here’s one factor they overlook: our government. In theory, our government is supposed to encourage private sector job growth. In reality, all the hundreds of pages of regulations are killing job growth, one small business and one job at a time.

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