• 9 hours The Fed Is Printing Money At Unprecedented Levels
  • 10 hours How Is The Real Estate Market Handling COVID-19?
  • 11 hours Gold Flat As Markets Await Fed Chair Speech
  • 12 hours What Is Day Trading And Is It Right For You?
  • 13 hours Energy CEOs See Big Payouts Despite Oil Price Crash
  • 14 hours Saudi Arabia Is Fighting A War On Two Fronts
  • 15 hours 40 Million Jobless As Pandemic Fuels Economic Collapse
  • 16 hours What Do India's Latest Reforms Mean For Its Coal Industry?
  • 17 hours Copper Glut Continues To Grow
  • 1 day How A Pandemic Made Americans Better Workers
  • 1 day The Trillion Dollar Space Race Crosses Another Milestone
  • 2 days Gold Prices Fall As Stock Market Sentiment Turns Positive
  • 2 days Conspiracy Theories Set Tone For 5G Cold War
  • 2 days Working From Home Will Transform The Energy Industry
  • 2 days The Multi-Billion Dollar Race For A Vaccine
  • 2 days Can Domestic Tourism Bolster Emerging Economies?
  • 2 days Australia Considers $100 Million Investment To Kickstart Mining Industry
  • 2 days Has Re-Opening The Economy Been Successful?
  • 3 days Gold Miners Still Have Massive Upside Potential
  • 3 days The Risky World Of Oil Hedging
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Gordon Long

Gordon Long

Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private…

Contact Author

John Rubino

John Rubino

John Rubino edits DollarCollapse.com and has authored or co-authored five books, including The Money Bubble: What To Do Before It Pops, Clean Money: Picking Winners…

Contact Author

  1. Home
  2. Markets
  3. Other

Stark Warnings on Global Trade

Stark Warnings on Global Trade

With John Rubino & Gordon T Long

24 Minute Video

John Rubino and Gordon T Long discuss the September FOMC decision, Brazil, Japan in the context of the large number and size of recent international bank layoff announcements. They talk about what is really going on here that no one wants to talk about publicly.

World Trade Value


FOMC Decision - An Incredibly Fragile Situation

Dow after Fed Rate Decision

Rubino says "It would have been a surprise if the Fed had raised rates! What is going out there is mostly pretty bad. The Fed is in a box right now and anything they do cares the potential for some sort of very serious unintended consequences.If they don't act in raising interest rates then that implies to the rest of the world that the Fed sees slow growth which scares the markets to do what they are doing (see chart to the right)."

"We are so leveraged right now that even a 'garden variety' equity bear market of -20% in the US and abroad cares the potential of pushing us into some sort of deflationary crash or 1930's style depression!"

"THE GUYS IN CHARGE HAVE NO IDEA WHAT TO DO! EXPECT A SHIFT TOWARDS RENEWED EASING.... ITS GOING TO BE 'BIGGER AND BADDER'.... 2016 is going to be a fascinating year for continued monetary experimentation."

We are currently seeing the build up in the intellectual framework from which this will happen.


Brazil

Brazil for a period of time was the Latin American country that initially got it right! They appeared to be on the verge of becoming a 'developed country' before it all fell apart. The US dollar spiked and Brazilian investment companies that had borrowed a lot of US dollars, investing them in high yielding Brazilian bonds of extraction oriented commodity companies. Now they are on the wrong site of the 'carry' with corruption concerns steadily surfacing.

"The corruption seems to have gone all the way to the top of the government! They have a political crisis as well as an economic crisis."


Japan

Japan has had the most aggressive debt monetization program of anyone in the world over the last three years where they basically tripled the balance sheet of the BOJ. It hasn't worked and Japan is not growing anymore! There inflation rate is basically zero and potentially dropping into deflation AFTER all this new money creation.

"It is clear what they do next, but proposals are now coming out of the woodwork from the easy money, Keynesian side of the spectrum which involves massive increases in money creation and government spending."

WE WILL SEE INTEREST RATES PUSHED TO NEGATIVE LEVELS IN MOST OF THE DEVELOPED WORLD AND CASH (ONE WAY OR THE OTHER) BE HOBBLED AS A STORE OF VALUE TO MAKE THAT HAPPEN!"

The Great EM Unwind

"For a long time global trade grew faster than GDP. More and more of our wealth was coming from trade. It turns out that most of that was do to China borrowing $15-$20 Trillion to snap up most of the global commodities. Everyone was getting richer on paper but that is turning out to be a mirage."

... there is much, much more in this 24 minute video discussion.

 

Back to homepage

Leave a comment

Leave a comment