QUESTION: Numerous people have asked: Does the FED actually also see these trends coming (strong US dollar, bond crash) ? K. ANSWER: Yes. The Fed has sent people to the major banking houses and told them outright that their models are wrong. They have been telling them quietly that there may not be a […]

QUESTION: Hi, I have two questions: a) do you believe US dollar has been kept artificially lower than it should be (or at least in long range trading range) by at least two central banks lately? if so how long you think it would last, years? b) you remind many times gold does not yield so […]

Japanese 10-year bonds have crashed because the government is stopping its bond-buying program, at least for now. Prime Minister Shinzo Abe’s monetary policy is starting to demonstrate the dangerous position we face on a global scale with respect to interest rates and debt. Japanese 10-year bonds have crashed since the Bank of Japan now holds over […]

(Note: The blue labels mark the change in the issues we used to create this perpetual index for long bonds) Germany sold 10-year debt at a negative yield on Wednesday of last week, becoming the first Eurozone nation to do so and setting a further milestone in the relentless fall of government bond yields around […]

The European Central Bank (ECB) will start buying corporate bonds on June 8. This will broaden Quantitative Easing by expanding it to a new asset class in a desperate struggle against deflation. The Governing Council meeting in Vienna maintained the refinancing rate at zero and the deposit rate at -0.4 percent as a component of its […]

Some people have wrongly expected a crash in the long bonds. What has actually happened is that China and others have sold into the high, liquidating their long bonds, and moving short-term. This is why rates are negative on the short-end. The CRASH comes in the opposite direction this time. Why? Because the central banks […]

S&P cut Brazil’s rating to BB-plus, the highest junk rating, from BBB-minus. The Sovereign Debt Crisis is unfolding right on time.

CalPERS, California Pension Plan for government workers, is adopting policies that demonstrate that they are incapable of managing money. They cannot handle the “volatility” in stocks so they are moving into bonds, and whatever shortfall they produce should be made up with higher taxes. If you are in California, my condolences. This is a strategy […]

Back in May of 2013, Paul Krugman said there was no bubble in bonds. Now he is back saying that debt is good and there is not enough of it. So just what is going on in his head? Of course, the hyperinflationists will point to all sorts of things and predict the end of society is near because of debt. We obviously […]

Since 1985, I have warned that the Big Bang was coming 2015.75. Here is the slide from our 1998 World Economic Conference (WEC). This target is the culmination of 51.6 years from the first break in the Bretton Woods Monetary system – 1964.15. So what was 1964.15? That was the end of silver coinage. The […]