Why interest rates are soaring and what it means for you – ABC News

Comment by tonytran2015: Inflation is vicious to fiat money users, Why do people buy Treasury Bonds with Negative Interests ?, The “Mean Realizable Present Value” of a future income, QE may be just another scam to steal national wealth,

https://www.abc.net.au/news/2021-03-01/why-interest-rates-are-soaring-and-what-it-means-for-you/13201602

…As new US President Joe Biden finalised his plan to splash around $US1.9 trillion on a stimulus package — the biggest on record — the market decided that all this stimulus, both monetary and fiscal, could only lead to one thing; inflation.

And that meant central banks would have to abandon their ultra-loose interest rate policies earlier than expected. The trickle of selling on bond markets suddenly swelled. By late last week, it was a tsunami. Bond prices collapsed forcing the yields — market interest rates — to soar.

The battle was on….

REBEL YELL: Can David Win Against Goliath? – The Storm On Wall Street | RIELPOLITIK

https://rielpolitik.com/2021/02/27/das-kapital-can-david-win-against-goliath-the-storm-on-wall-street/

After the storming of the Capitol, there is now a big commotion on Wall Street. This time it is not the supporters of the Occupy Wall Street movement who are trying to storm the fortress of the financial world. It is small investors who are hurling a stone at the big funds.

Hedge funds – that’s what we’re talking about – are actively managed funds whose goal is to achieve the highest possible return regardless of market developments. This is achieved by hedging (hence their name) their shares, bonds, their investments in commodities, foreign exchange and other assets. Most of the time, funds hedge by buying what are called shorts on their investments. It works like this: they buy, for example, shares of a company within a longer period for a total of 1 billion dollars, usually when they are undervalued, which raises the price of those shares, which in turn attracts small investors. At this point the funds get rid of their shares and take a short position by borrowing the shares from an institutional investor like a pension fund and selling them on the market pushing the price down. To return the shares to the pension fund, they repurchase them at a lower price…

SEC Suspends Trading In 15 Companies Due To “Questionable Trading And Social Media Activity”

https://www.nationandstate.com/2021/02/26/sec-suspends-trading-in-15-companies-due-to-questionable-trading-and-social-media-activity/

SEC Suspends Trading In 15 Companies Due To “Questionable Trading And Social Media Activity” Two weeks ago we said that the regulatory crackdown against WallStreetBets had begun when the SEC suspended trading in pennystock Spectra Science (SCIE). Well, today we got the clearest confirmation yet that the SEC will do everything in its power to….

In strike against federal overreach, judge declares pandemic eviction moratorium unconstitutional | Just The News

https://justthenews.com/government/courts-law/texas-public-policy-foundation-says-challenged-eviction-moratorium-declared?utm_source=justthenews.com&utm_medium=feed&utm_campaign=external-news-aggregators

The moratorium prohibits property owners from ousting tenants meeting certain criteria who are unable to pay their rent.

“Today, the court held that the federal government cannot interfere with private property rights or citizen’s access to the courts to exercise their rights under state law,” Texas Public Policy Foundation’s General Counsel Robert Henneke said in a statement. “The CDC attempted to use COVID-19 as an opportunity to grab power and the court rightfully corrected this egregious overreach.”…

Media code governing Facebook and Google in Australia becomes law

Comment by tonytran2015: Not law yet. It needs Royal Assent from the Governor General of Australia.

https://www.9news.com.au/national/media-laws-facebook-google-monopoly-josh-frydenberg-house-of-representatives-vote/1fc34014-b0bd-420c-adb2-d90f539b6392

…The Federal Government’s new media code for platforms like Google and Facebook has passed the House of Representatives, making it law…

CORPRO-FASCISM: How to Crush a Bankers’ Dictatorship, A Lesson From 1933 – By Matthew Ehret (Archive) | RIELPOLITIK

https://rielpolitik.com/2021/02/21/corpro-fascism-how-to-crush-a-bankers-dictatorship-a-lesson-from-1933-by-matthew-ehret/

How the 1929 Crash was Manufactured

…The bubbles of the 1920s were unleashed with the early death of President William Harding in 1923 and grew under the careful guidance of JP Morgan’s President Coolidge and financier Andrew Mellon (Treasury Secretary) who de-regulated the banks, imposed austerity onto the country, and cooked up a scheme for Broker loans allowing speculators to borrow 90% on their stock. Wall Street was deregulated, investments into the real economy were halted during the 1920s and insanity became the norm. In 1925 broker loans totalled $1.5 billion and grew to $2.6 billion in 1926 and hit $5.7 billion by the end of 1927. By 1928, the stock market was overvalued fourfold!

When the bubble was sufficiently inflated, a moment was decided upon to coordinate a mass “calling in” of the broker loans. Predictably, no one could pay them resulting in a collapse of the markets. Those “in the know” cleaned up with JP Morgan’s “preferred clients”, and other financial behemoths selling before the crash and then buying up the physical assets of America for pennies on the dollar. One notable person who made his fortune in this manner was Prescott Bush of Brown Brothers Harriman, who went onto bailout a bankrupt Nazi party in 1932. These financiers had a tight allegiance with the City of London and coordinated their operations through the private central banking system of America’s Federal Reserve and Bank of International Settlements.

Robinhood Thursday and the Washington Idiots at Work, by David Stockman | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/02/21/robinhood-thursday-and-the-washington-idiots-at-work-by-david-stockman/

… But among today’s silly foibles, the incessantly repeated idea that the Reddit Mob was a victim of a “pump and dump” scheme surely takes the cake. If these people were stupid enough to think that the value of a company dying in plain sight (i.e. GME) could go from $400 million to $23 billion in less than six months while its reported finances continued to deteriorate, they deserve to loose every dime of the stimmy money they threw into the Robinhood pot.

Still, the fact that the greedy, dimwitted Reddit Mob got its just desserts isn’t the half of it.

What was really on display Thursday in the recently christened (since January 6th) Holy of Holies of American Democracy is the utter cluelessness on both sides of the political aisle with respect to the financial elephant in the room: Namely, that the Fed has transformed Wall Street into a giant, destructive gambling den, which is now sucking a growing share of the populace into the pursuit of instant get-rich speculations that have no chance of panning out.

Michael Burry Warns Weimar Hyperinflation Is Coming

https://www.nationandstate.com/2021/02/21/michael-burry-warns-weimar-hyperinflation-is-coming/

Michael Burry Warns Weimar Hyperinflation Is Coming One week ago, Bank of America hinted at the unthinkable: the tsunami of monetary and fiscal stimulus, coupled with the upcoming surge in monetary velocity as the world’s economy emerges from lockdowns, would lead to unprecedented economic overheating… or rather precedented as BofA’s CIO Michael Hartnett reflected back…

World debt soars to record $281 TRILLION in 2020, set to rise again this year – report — RT Business News

https://www.rt.com/business/515906-world-debt-record-pandemic/?utm_source=feedly&utm_medium=rss&utm_campaign=RSS

The Covid-19 pandemic has added $24 trillion to the global debt mountain over the last year, the Institute of International Finance (IIF) said. Government spending has accounted for about half of the increase.

Corporations added $5.4 trillion to the total, while banks and households accounted for $3.9 trillion and $2.6 trillion respectively.

With global debt now totaling a record $281 trillion,

the ratio of debt to global GDP has risen 35 percentage points to over 355 percent,

the institute’s study shows. The increase in debt is larger than the rise seen during the global financial crisis, in which 2008 and 2009 saw 10-percent and 15-percent debt-to-GDP jumps respectively.

Borrowing levels are expected to run well above pre-pandemic levels in many countries and sectors again this year, supported by still-low interest rates.https://platform.twitter.com/embed/Tweet.html?creatorScreenName=RT_com&dnt=false&embedId=twitter-widget-0&frame=false&hideCard=false&hideThread=false&id=1362107775422238727&lang=en&origin=https%3A%2F%2Fwww.rt.com%2Fbusiness%2F515906-world-debt-record-pandemic%2F&siteScreenName=RT_com&theme=light&widgetsVersion=889aa01%3A1612811843556&width=550px

“We expect global government debt to increase by another $10 trillion this year and surpass $92 trillion,” the IIF said, adding that slowing down support could prove even more challenging than it was after the financial crisis.

“Political and social pressure could limit governments’ efforts to reduce deficits and debt, jeopardizing their ability to cope with future crises. This could also constrain policy responses to mitigate the adverse impacts of climate change and natural capital loss,” it added.

According to the report, rises in debt were particularly sharp in Europe, with non-financial sector debt-to-GDP ratios in France, Spain, and Greece increasing by 50 percent.ALSO ON RT.COMCovid pandemic could push more than a BILLION people worldwide into extreme poverty, UN warns

In emerging markets, China saw the biggest rise in debt ratios excluding banks, followed by Turkey, South Korea, and the United Arab Emirates. South Africa and India recorded the largest increases just in terms of government debt ratios.

“Premature withdrawal of supportive government measures could mean a surge in bankruptcies and a new wave of non-performing loans,” the IIF said.

Inflation Here, There, And Everywhere

https://www.nationandstate.com/2021/02/20/inflation-here-there-and-everywhere/

Inflation Here, There, And Everywhere Authored by Bryce Coward via Knowledge Leaders Capital blog, What a week for price data! We have been writing about the possibility of higher inflation for months now, most recently here. We have also highlighted the most likely assets to benefit from higher inflation like copper, oil and energy stocks. So far so…