Central Banks Do the Tighten Up

By Lance Gaitan The Bank of Japan (BoJ) shook the global credit markets last Tuesday. Even Treasury bond investors perceived the BoJ’s tweaks to its monetary policy as a signal that the transition away from extraordinarily accommodative measures may be coming. The …

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Coming soon: a world of pervasive NIRP and QE by all central banks as they do everything in their power to prevent the zombie system, which now only exists thanks to incremental debt, from collapsing.

“All cost of capital globally, eventually, will have to go negative and the reason is very simple: it’s the degree of leverage and financialization that we have globally. Pretty much every country now needs 3 to 4 dollars of debt for every …

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