#Arkhaven INFOGALACTIC #Castalia House
The failure of Credit Suisse vaporized $17 billion in corporate bonds and another $31 billion in market cap in the last year. That means the Swiss government would have to find nearly $50 billion in new debtors just to stay even: Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 […]
German leaders fear the German public running out of cash this winter: On Tuesday, Reuters reported German authorities are moving to acquire emergency cash deliveries to keep their economy running in the event power outages take down electronics-dependent methods of payment. People familiar with the government plans reported that the Bundesbank, Germany’s central bank, had […]
The sudden, rampant inflation that we’re seeing is the result of the neo-liberal rules-based world order’s attempt to preserve its hegemony. It’s not the usual excess money supply caused by low interest rates creating more debt money; if it were, interest rates could simply be raised to keep inflation under control. But with the first […]
Sri Lanka just defaulted on its debts for the first time since independence in 1948: The Government yesterday signaled Sri Lanka was bankrupt, announcing a temporary suspension of repayment of all external debt as of yesterday, saying the country can no longer honour its commitment owing to poorer financial position caused by external and internal […]
Banks are flat-out refusing to provide business loans unless the government fully guarantees them so they aren’t subject to any risk. It’s interesting, though hardly surprising, to see that the loan guarantees are actually making loans harder to get. I own and operate a consulting company the end goal of which is to set up […]
The 12-year period of credit disinflation appears to be over as the global economy is finally beginning to visibly deflate despite the best efforts of the central banks: Canadian inflation went negative for the first time since the 2009 recession after the coronavirus lockdown put the brakes on the world economy. Consumer prices dropped 0.2 […]
A reader writes to observe that the concept of debt deflation is gradually leaking out into the mainstream discourse: I found a little snippet that NeonRevolt posted from Reddit’s Wallstreetbets concerning Debt Deflation. I will reproduce the two pertinent paragraphs below, and while I am unsure of the veracity of some of the other points, […]
Oil prices have gone negative in Canada: And there it is… May WTI just traded below zero for the first time ever (trading below NEGATIVE $40 per barrel)… There was a small bid right into the settlement at 1430ET leaving the May contract to settle at negative $37.63. Interesting times, my friends. Very interesting times.
Check one. When banks are charging their depositors to hold their money, this is strongly indicative of deflation: Just three months ago, Mario Draghi (President of the European Central Bank) embarked on his own Quixotic folly by taking certain interest rates into NEGATIVE territory. Draghi convinced himself that he was saving Europe from disaster. And […]
This announcement by the Chinese government should indicate a near-term end of the global asset bubble, as it seems unlikely that the deflationary contagion can be restricted to China, particularly given the situation in Ukraine. China is braced for a wave of industrial bankruptcies as its slowing economy forces companies with sky-high debts to the […]