Recommended Reading: It’s all one trade

The world’s finances may be reaching critical stress-points, and as Bill Fleckenstein points out in this excellent article, the recent cracks that have started to appear in the Japanese and US bond markets could be as significant as the first payment defaults that occurred during the subprime mortgage meltdown.

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Recommended Reading: Low Interest Rate Addictions

There is a great deal of debate over whether the ending of QE will adversely affect the US economy. The bulls believe that the Fed’s decision to “taper” is a reflection of an improving economic outlook. However, the bears argue that a Fed exit will trigger a spike in interest rates and a dramatic economic slowdown.

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Recommended Reading: Stimulus and risk – why the Keynesian borrowers are wrong

Economic policy in Britain is in desperate need of a radical overhaul, however Labour’s Keynesian alternative of print, borrow and spend is not the answer. In this excellent article Dr Tim Morgan, Global Head of Research at Tullett Prebon, helps explain why the Keynesian prescription is actually an extremely dangerous and foolhardy option.

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Recommended Reading: Abe Pulls Pin on JGB Grenade

Shinzo Abe is pressing ahead with his goal of devaluing the yen. On Tuesday he pressured the BoJ into adopting a 2% inflation target which paves the way for open-ended asset purchases. However, Abe’s cure could very well prove worse than the disease.

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Recommended Reading: Don’t they get it?

In this article, Dr Tim Morgan explores the disconnect between government policy and economic reality. He discusses the assumption in Britain that “growth will [magically] arrive” sooner or later, “despite evidence to the contrary”, and his charts demonstrate the dangerous trajectory of US Federal debt.

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Recommended Viewing: Kyle Bass on the decline of the Yen & the end of the Debt Supercycle

In this excellent interview American hedge fund manager, Kyle Bass, Founder of Hayman Capital, shares his thoughts on the coming decline of the Japanese yen and the end of the Debt Supercycle.

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Recommended Reading: Bernanke loosens further the monetary stance

In this excellent article Dr Frank Shostak, an adjunct scholar of the Mises Institute and a leading Austrian economist, exposes the fallacy that central bank money creation can create prosperity.

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Recommended Reading: The Gradual Return to Fiscal Dominance

In this excellent article Hinde Capital’s Simon White examines the disturbing rise of “fiscal dominance” i.e. the shift towards greater political interference in central bank policy.

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Recommended viewing: Overdose: The Next Financial Crisis

The majority of politicians and economists believe the financial crisis is behind us and that we’re on the road to recovery. Overdose: The Next Financial Crisis is an award winning documentary that tells the story of the greatest economic crisis of our age – the one that awaits us.

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Recommended reading: The Magnitude Of The Mess We’re In

In an excellent article in the Wall Street Journal, five senior fellows from Stanford University reveal the true scale of America’s debt problem. They also make it clear that if the US doesn’t change course it will find itself at the centre of a Greek-style funding crisis.

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