Insurance isn’t really an area that I had much interest in, mostly because in the countries where I’ve lived, it has generally been a well-run and stable business. However, the recent Los Angeles wildfires prompted me to look into this sector in California more closely, and what I discovered is…
Category:Inflation
THE BIG MISUNDERSTANDING ON WHY CHINA BOND YIELDS KEEP FALLING
China’s 10-year government bond yields have just hit a historic low at 1.64%. Despite this downward trend continuing for a while, there is still a great deal of misunderstanding about what’s happening here in the Western part of the world (with many mainstream media and social media “gurus” not missing…
HOW A FIAT CURRENCY SYSTEM DIES OF A THOUSAND CUTS
The result of the US elections should have rung warning bells everywhere in the world, but apparently, it didn’t. Europe, Canada, Japan, South Korea – the list of economies that persist in feeding asset bubbles is long. The US is still part of it, considering the market is forcing (sorry,…
WHY A HEALTHY ECONOMY IS BAD FOR BANKS AND SHADOW BANKS BUSINESSES
Imagine a world where people only spend what they earn or where companies borrow to build new factories and use the additional revenues generated to repay the debt. Imagine a world where you have to plan and save enough money in advance to make an expensive purchase or where governments…
BRACE FOR IMPACT: WHY MARKETS MAY FACE A VOLATILITY STORM AFTER THE 2024 US ELECTION
Finally, here we are with only one day left until the end of the most tragicomic US Presidential campaign ever. So far, investors do not seem too concerned about it, considering the shape of the VIX curve. Yes, some have put some hedging in place, but as you can see,…
THE FED’S HIDDEN QE: HOW BANKS ARE PROPPING UP ASSET PRICES AT THE COST OF FUTURE INFLATION
A few days ago in “EXPOSING THE ILLUSION: HOW MODERN ECONOMICS FUELS WEALTH INEQUALITY AND ZOMBIE MARKETS,” I discussed how current economic theories, often used to guide market decisions, are being contradicted by the actual results they produce. Right now, many are puzzled by how the USD, US yields, and…
HOW THE BIDEN ADMINISTRATION SET UP MINE FIELDS ALL OVER THE US ECONOMY TO UNDERMINE THE FUTURE GOVERNMENT IN CASE THEY LOSE ELECTIONS
First of all, for those not familiar with it, let me quickly describe what is a minefield. Literally speaking a minefield is an area planted with explosive devices designed to deter or damage enemy forces, and it is primarily used as a defensive measure to control movement and protect strategic…
THE ECB: EUROPE’S CONTRADICTIONS BUREAU, NOT JUST THE EUROPEAN CENTRAL BANK
Let’s dive into the latest ECB press release, specifically focusing on the main reason behind their decision to cut rates by 25 basis points today: “Inflation is expected to rise in the coming months, before declining to target in the course of next year. Domestic inflation remains high, as wages…
EXPOSING THE ILLUSION: HOW MODERN ECONOMICS FUELS WEALTH INEQUALITY AND ZOMBIE MARKETS
Two months ago, in FINANCIAL MARKETS REACHED A “SINGULARITY” NO ONE WANTS TO DEAL WITH, I tried to highlight how legacy economic theories—built on assumptions that never fully materialized decades ago—are now ineffective in today’s economic context. In that article, I emphasized five key points: Today, @thesiriusreport posted one of…
IS THE OIL PRICE ABOUT TO BECOME A KEY TOPIC OF THE US PRESIDENTIAL CAMPAIGN?
Oil price is perhaps the most manipulated asset price right now after gold and silver managed to escape BIS trading desk claws lately. Let’s start from where we left this topic almost one year ago when the Biden administration successfully managed to crush the oil price through the floor all…