All posts in " Interest Rates "
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Bundesbank Warns German Banks Rates are Moving Higher

By admin / March 27, 2018

  QUESTION: Mr. Armstrong; It appears that now the Bundesbank has adopted your view of rising interest rates. How fast do you see rates rising? PY ANSWER: Yes, the Bundesbank President Jens Weidmann has come out and warned that banks should start to make provisions for interest rate risks associated with rising interest rates. The normalization of the […]

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The Fed is Raising Rates Because of the Pension Crisis

By admin / March 27, 2018

QUESTION: The Fed says it will raise rates two or three times more this year. My question is this: If the stock market is crashing, why are they still raising rates? HW ANSWER: The Fed is raising rates because they must be NORMALIZED given the pension crisis. They are trying to get them back up […]

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Punishing Traders for What Central Bankers Do All the Time

By admin / March 21, 2018

Bloomberg is reporting the fate of Christian Bittar who was the top trader at Deutsche Bank AG. He earned a bonus of $126 million in 2008 for betting that as the economy would melt down, banks would refuse to lend to each other until the dust settled so short-term rates would soar. While he is sitting now […]

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How Can the Majority Be Wrong if they ALL Expect Interest Rates to Rise?

By admin / March 20, 2018

QUESTION: Today most analysts think higher interest rates are on the way. If the majority is always wrong how does that play into the expectations for higher interest rates? HP ANSWER: With the Federal Reserve stating they must “normalize” interest rates since 2014, of course, the majority will view that will be the trend. We […]

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Interbank Rates Starting to Rise – Monetary Crisis is Beginning

By admin / March 15, 2018

    Extremely reliable sources from Behind the Curtain in Europe are becoming deeply concerned that Draghi at the ECB has created a monumental economic disaster he is just praying to holding off until he leaves next year. Interest rates are already starting to rise significantly in several important money and interbank markets. Both banks and debtors are […]

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Draghi Admits He Cannot Stop Buying Gov’t Debt

By admin / February 28, 2018

Draghi has realized that he has singlehandedly destroyed the European bond market. Besides the fact that it is illegal to short government bonds, he has come face to face with the stark reality that IF the ECB stops buying government bonds, there will be NO BID at these price levels. Interest rates will skyrocket dramatically. On […]

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Bonds Coming Under Pressure

By admin / February 27, 2018

We are beginning to observe institutional investors withdrawing from bonds issued by companies whose credit ratings are in question. Many are also selling off other classes of bonds in anticipation of higher rates. The trend toward investing in high yielding debt mainly by pension funds has begun to reverse albeit gradually. Because of the low yields, […]

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Rising Interest Rates

By admin / February 22, 2018

While the stock market crashed as the pundit looked in their bag to try to come up with an excuse, they blamed rising inflation and interest rates. Yet, nobody is really paying attention to the underlying trend. The cost of carrying debt has been rising gradually and there are noticeable measurable impacts that the pundits are […]

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Short v Long-Term Rates

By admin / February 16, 2018

QUESTION: Hi Mr Armstrong, I have read somewhere that you think that interest rates will go up higher than expected and at faster pace. I don’t understand its relations with bonds. Also your opinion seems to be in clear contrast to everyone else who thinks it will go up slowly over the next few years. If […]

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