China’s economic slowdown is drawing a lot of attention in Manhattan boardrooms. While Asia’s largest economy is not faltering, its 4.8% growth rate in the third quarter—the slowest this year—is sending up warning signs everywhere. Even the positives come with (serious) asterisks. For now, external demand is keeping China on track for this year’s 5% …
Tag: Japan
Massive collapse due to public debt crisis: G5 of G7 could collapse
Some of the world’s largest economies are at the center of a bond market storm, as investor concerns grow that governments are making the necessary reforms to reduce uncomfortably high levels of debt. And how could they, after all, as growing social inequalities and the emergence of other major problems such as immigration lead electorates …
Bond Markets: Reduce Debt and Deficits – deficits will not be financed by the markets
The Land of the Rising Sun is not generally of much interest to global investors — until something goes really wrong, when it does. Japan’s $7.8 trillion government bond market is suddenly causing major financial shocks around the world. A few days ago, Japanese government bonds (JGBs) were the usual haven of calm with ultra-low …
Trust Economics: A new Global cycle of terror is underway
The world is on a grim and unpredictable path, with geopolitical upheaval, military conflicts, and economic derailments creating an explosive combination with unpredictable consequences. The Middle East looks like a powder keg ready to explode, as Israel and Iran are one step away from open conflict. Meanwhile, the United States is sinking deeper into a …
China abandons the Dollar and buys Gold – Liquidated $27.6 billion in US bonds
China’s decision to dump US bonds and at the same time engage in massive gold purchases to bolster its foreign exchange reserves amid a trade war is heralding a monetary earthquake. This move did not come as a bolt from the blue as Beijing’s gradual withdrawal from US debt began during the period of sanctions …
The appreciating yen and the depreciation of the dollar became a nightmare for Japan
As Donald Trump tries to weaken the dollar to boost the US economy and manufacturing, the Japanese yen is developing safe-haven behavior faster than Tokyo policymakers would like – causing monetary policy turmoil in Asia’s second-largest economy. The extent to which the US president’s trade war is hurting confidence in dollar-denominated assets can be seen …
Tariffs and the $3 trillion held by Asian central banks that make them punishers in the US bond market
Great turmoil, great situation – to use a phrase from former Chinese President Mao Zedong to sum up the trade war declared by President Trump. The dollar extended its biggest plunge in three years on Friday, April 11, after China raised tariffs on U.S. goods to 125% from 84%, a step up in tensions that …
A Global financial crisis is coming from Japan
The “Japan shock” that has the potential to destroy stocks worldwide is just getting started, and investors should start preparing for it. Notably, President Trump welcomed UK Prime Minister Starmer to the White House. However, the more pressing issue they probably didn’t discuss is that both the US and the UK are facing what I …
The Japanese sold off 41 billion of Eurozone debt in 6 months, leading to a generalized sell-off in bonds
Japanese investors have sold off eurozone government debt at the fastest pace in a decade, suggesting that the move by one of the major holders of European debt could lead to a sharp sell-off in the market. Gross online sales by Japanese buyers rose to 41 billion euros in the six months to November, the …
All roads lead to inflation – USA & EU on Japan’s path
The recent 50 basis point rise in long-term bond yields began the day after the Fed cut interest rates by 50 basis points (base rate 4.75% to 5%). Some of the bond bears argue that the Fed will reignite inflation by cutting interest rates as the economy remains strong. Others fear that fiscal deficits are …