QUESTION: The distinction between the Repo Crisis and Quantitative Easing is the duration and purpose as distinguished from 2007-2009? HS ANSWER: Yes. Under QE, the Fed was buying in 30-year bonds in hope of creating a shortage of long-term paper that would in theory lead to consideration of buying long-term mortgage paper. It was trying […]
QUESTION: There are people claiming that Fed cannot buy directly from the Treasury and they are buying the same day issue in this Repo Crisis so that means they are monetizing the debt because foreigners are fleeing us Debt. This seems to lack any real substance and is nothing but opinion once again. Would you […]
QUESTION: Sir, Given the liquidity crisis and the problem to arrive from Europe, I have a question for us Europeans: when you are talking about Europe and failures to come, you mean: 1. euro zone countries ONLY? 2. EU countries which still hold their currency (eg. Romania)? 3. what about the UK? Thank you. SM […]
QUESTION: Dear Martin Armstrong, In your blog post “Liquidity Crisis & the Pending European Banking Crisis” Posted Oct 2, 2019 ” you write ‘Those in Europe who have a position in cash, it may be better to have shares or a private sector bond or US Treasury. Given the policy in Europe of no bailouts, […]
QUESTION: Hi Marty – Thank you for the insight you provide as regards how the world really works. Spending 10 minutes reading your daily blog is equivalent to hours of reading the MSM propaganda and trying to discern the truth. My question to you is in response to your 10/2/19 post >> Liquidity Crisis & […]
A lot of people have been writing in about the liquidity crisis and the banks with exposure to Deutsche Bank. This is clearly the European Banking Crisis we have been warning about. Most European (and Swiss) banks are having to overpay 30-40bps over libor. Even A+ rated banks are having to pay this premium. […]
Malaysia filed criminal charges on Friday against 17 current and former directors at subsidiaries of Goldman Sachs Group Inc (GS.N) following an investigation into a multi-billion-dollar corruption scandal that led to the demise of state fund 1MDB. Those charged include Richard Gnodde, chief executive of Goldman Sachs International, Michael Evans, president of Alibaba Group Holding Ltd […]
https://www.armstrongeconomics.com/wp-content/uploads/2019/04/Trailer-Bond-Contagion.mp4 We are facing a very interesting financial crisis that has never before been witnessed because this is how the Socialist Utopian Society will crash and burn. We are beyond all economic theories for nobody from Keynes back to Adam Smith ever contemplated what would happen with the deadly theory of Quantitative Easing constructed upon […]
QUESTION: Mr. Armstrong; I assume you read that Mr. Nagai has confirmed what you have been saying that the central banks have destroyed the bond markets. I must confess, his comments have finally struck a vein in our senior management. I have been trying to explain your view to them but nobody wanted to think […]
QUESTION: As of today, Basel III comes in effect. Rumour goes that in a couple of months, there will be a lot of turmoil on the market and it would be the start of the implementation of an SDR like thing where people would lose 20-30% of their value and get stuck with this new […]
