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A very piece by Stockman.

"The implication, of course, is that stalling world growth requires more central bank stimulus, and even a scramble toward NIRP by central banks which have not yet joined the Looney Tunes brigade of the ECB, Sweden, Denmark, Switzerland and Japan.

Not even close. The amount of debt pouring into the negative yield basket is owing to speculators buying bonds on NIRP enabled repo. Their cost of carry is nothing, and the prices of NIRP bonds keep on rising.

So yields are plunging into the financial netherworld because speculators are front-running the financial death wish of the central banks.

Until they stop. Then look out below. The mother of all bubbles--that of the $100 billion global bond market--will blow sky high.

At length, savers will get their relief and our 200 financial rulers will be lucky to merely end up in the stockades at a monetary version of the Hague.

Meanwhile, the War On Savers continues to transfer hundreds of billions from savers to the casino in the US alone--even as the global economy careens towards a deflationary collapse.

1 posted on 02/05/2016 8:44:15 AM PST by amorphous
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To: amorphous

there can be no political reform, and conservatives will continue to lose the culture wars as long as the Federal Reserve continues to exist in its present form.

Money is the life blood of society, and measures everyone’s interactions with society. As long as ours is centrally controlled and manipulated by central planners and massive debt feeds our massive, progressive nanny state - conservatives will watch the country move further away from them.


2 posted on 02/05/2016 8:50:35 AM PST by PGR88
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To: amorphous

I know that a billion is a big number, but it’s small relative to the global bond market.

The global bond market is round off to a $100 TRILLION, not billion.


4 posted on 02/05/2016 9:17:18 AM PST by Skepolitic
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