ChartOfTheDay: TheFedNowOwnsOneThirdOfTheEntireUSBondMarket http://feedproxy.google.com/~r/zerohedge/feed/~3/bJwW33y_Tuw/story01.htm The most important chart that nobodyat the Fed seems to pay any attention to, and certainly none of the economists who urge the Fed to accelerate its monetization of Treasury paper, is shown below: it shows the Fed’s total holdings of the entire bond market expressed in 10 Year equivalents (because as a reminder to the Krugmans and Bullards of the world … Seguir leyendo Chart Of The Day: The Fed Now Owns One Third Of The Entire US Bond Market

WarOnDemocracy: SpainAndJapanMoveToCriminalizeProtests http://feedly.com/k/1eJt44R SubmittedbyMichaelKriegerofLibertyBlitzkriegblog, As might be expected as political and economic policy failures pile up and citizens become increasingly mad, the status quo is becoming increasingly authoritarian (recall blogger “Mish” was just fined 8,000 euros for a blog post). In the latest disturbing news from a desperate power structure, the conservative government in Spain has passed an Orwellian bill titled the Citizens’ SecurityLaw, which … Seguir leyendo War On Democracy: Spain And Japan Move To Criminalize Protests

ChineseYuanSurpasses Euro, BecomesSecondMostUsedCurrencyInTradeFinance http://feedproxy.google.com/~r/zerohedge/feed/~3/TnX2PEWRXbA/story01.htm Slowly but surely the Chinese currency is catching up to the world’s reserve and moments ago, according to SWIFT, the Yuan just surpassed the Euro in trade (remember trade: that’s how countries once upon a time would generate capital flows in a time when central banks weren’t there to literally print domestic funding needs) finance usage leaving just the USD in … Seguir leyendo Chinese Yuan Surpasses Euro, Becomes Second Most Used Currency In Trade Finance

Reino Unido: El populismo invade el debate migratorio http://feedly.com/k/IDAImG European Voice, Bruselas – La decisión del primer ministro británico, David Cameron, de retirar los subsidios a los nuevos inmigrantes pone de manifiesto su falta de valentía moral y su deriva populista, en lugar de admitir la realidad de que la economía británica necesita a los inmigrantes, reprocha European Voice en editorial. Ver más. shared via … Seguir leyendo Reino Unido: El populismo invade el debate migratorio

DebtDeflationinSpain: Record 4.7% Decline inHouseholdCredit, BusinessLendingDown 10% http://feedproxy.google.com/~r/MishsGlobalEconomicTrendAnalysis/~3/ZPEkNXhsy1w/debt–deflation–in–spain–record-47.html Kiss any notion of a Spanish recovery goodbye. Via translation, El Pais reports HouseholdcreditsuffersrecordfallinOctoberdespitetherescue. Credit in Spain continues to show signs of weakness, year and a half after the Troika bailout. Statistics from the Bank of Spain show that household credit fell 5.2% in October to 793.940 billion euros. If we look at the evolution of the … Seguir leyendo Debt Deflation in Spain: Record 4.7% Decline in Household Credit, Business Lending Down 10%

What’sTheDifferenceBetweenMarkets & Reality? About 22% YTD http://feedly.com/k/IuzA4R Faith, hope, andconfidence are the 3 key factors driving stocks at this point with fundamentals lagging an awkward 4th place. Faith in the perpetual central bank put (and bad news is thus good news); Hope that repeating the same ‘experiment’ following its previous failures will work this time; and confidence that the old normal is re-attainable (no matter … Seguir leyendo What’s The Difference Between Markets & Reality? About 22% YTD

ISLM: a furtherexplanationand a defense http://feedly.com/k/IzqT9g I noted before the traditional representation of the ISLM is problematic. Yet as I also noted the ISLM model can accommodate changes that incorporate the criticisms of classical-Keynesian, post-Keynesian and other heterodox groups. There is no need for an investment function based on the marginal productivity of capital and the principle of substitution. The accelerator can be incorporated, and … Seguir leyendo ISLM: a further explanation and a defense

ShillerWorriedAbout "Boom InUSStocks… Bubbles Look LikeThis" http://feedly.com/k/18vYY6w On the heels of his recentappearancepouringcoldwateronJimCramer’shousingrecoveryexuberance, recent Nobel Prize winner Bob Shiller unloads another round of uncomfortable truthiness (presumably on the basis of his future-proofing tenure guaranteed by the Nobel). "Bubbles look likethis," Shiller tells Der Spiegel, adding that he is, "most worried about the boom in US stock prices." As Reuters reports, Shiller is concerned since "the … Seguir leyendo Shiller Worried About “Boom In US Stocks… Bubbles Look Like This”

BitcoinPlungesIntoBearMarket http://feedly.com/k/1hrsWv8 UPDATE: BTC has rallied 26% offitslowsinthelast 55 minutes – with extreme volumes From it’s gold–matchinghighsat $1242 onThursdaynight, the price of Bitcoin has collapsedover $400 (32%) to $840 onheavyvolume. Of course, this is only a one-week low for the exuberant digital currency but still a significant plunge (as its smaller brethren Litecoin has collapsed 51% fromitshighs). Interestingly, this drops the price of Bitcoin in … Seguir leyendo Fortísima bajada del Bitcoin

WhyHayek’sTheoryofPricesandKnowledgeisFlawed http://feedly.com/k/18uhtIv Frederic S. Lee explains in the passage below from insights by the British economist GeorgeRichardson: “After reading Friedrich Hayek’s article on economics and knowledge (Hayek, 1937), Richardson became concerned with the theoretical problem of the market conditions under which the enterprise could expect to generate the necessary information on which to base its investment decisions. Approaching the problem theoretically, Richardson first argued that … Seguir leyendo Why Hayek’s Theory of Prices and Knowledge is Flawed