Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-56784 Sat, 23 May 2015 16:13:27 GMT Bank of England accidentally emailed 'Brexit' taskforce plans to newspaper iehi-feed-56783 Sat, 23 May 2015 15:01:23 GMT Millions of Barrels of Oil Are About to Vanish iehi-feed-56782 Sat, 23 May 2015 15:00:30 GMT Yanis Varoufakis Is More Than His Clothes; Greece Submerges; Fights to Save Pensions, and more German, Russian and Chinese companies race to buy up Greek infrastructure, Greece Submerges as Crisis Fallout Worse Than Emerging Markets, and Fight to save the Greek pension takes centre stage in Brussels and Athens.]]> iehi-feed-56781 Fri, 22 May 2015 20:50:35 GMT OECD - "We Reached The Tipping Point": Income Inequality Is Highest Since Records Began iehi-feed-56780 Fri, 22 May 2015 20:46:58 GMT China, Brazil Agree to $50 billion Infrastructure Fund, Trans-Oceanic Railway and Billions More in Deals iehi-feed-56779 Fri, 22 May 2015 19:48:53 GMT Is the party over for real estate investing? iehi-feed-56778 Fri, 22 May 2015 19:44:47 GMT Austria Confirms Repatriates 110 Tons Of Gold From BOE iehi-feed-56777 Fri, 22 May 2015 19:42:15 GMT You should probably take a look at what's happened to earnings... iehi-feed-56775 Fri, 22 May 2015 16:51:44 GMT Renzi is still dodging big Italian pension fight (IT) iehi-feed-56774 Fri, 22 May 2015 14:24:27 GMT Greek Banks will be asked to revise their restructuring plans iehi-feed-56773 Fri, 22 May 2015 14:21:43 GMT There's a simple way to make sure bankers don't rig the markets again iehi-feed-56771 Fri, 22 May 2015 14:09:21 GMT For Caterpillar, This Is What The "Second Great Depression" Looks Like iehi-feed-56770 Fri, 22 May 2015 14:06:56 GMT UBS Shielded From Charges in U.S. Precious-Metals Probe The Swiss bank's main UBS AG unit won't be charged by the department's criminal division for information the firm disclosed to prosecutors about precious-metals transactions, according to the company's plea agreement released on Wednesday to resolve a probe into interest-rate manipulation.

Prosecutors have been investigating whether at least 10 banks, including Barclays Plc, JPMorgan Chase & Co. and Deutsche Bank AG, manipulated prices of precious metals such as silver and gold, Bloomberg reported in February. The scrutiny follows international probes into the rigging of financial benchmarks for rates and currencies, which have yielded billions of dollars in fines.

iehi-feed-56769 Fri, 22 May 2015 13:54:43 GMT Ray Dalio Slams Buffett For Being "Wrong On Gold", Says "Social Disruption" Is Inevitable iehi-feed-56768 Fri, 22 May 2015 13:53:50 GMT Stocks Slump After Liesman Reports GDP To Be "Double Seasonally-Adjusted" Upward iehi-feed-56766 Thu, 21 May 2015 15:54:32 GMT Sales of Previously Owned U.S. Homes Unexpectedly Decline iehi-feed-56765 Thu, 21 May 2015 15:51:39 GMT Japan Prime Minister Unveils $110 Billion Plan for Asian Infrastructure iehi-feed-56764 Thu, 21 May 2015 15:36:14 GMT The Gloves Come Off: Moody's Warns Of Greek The Gloves Come Off: Moody's Warns Of Greek "Deposit Freeze" As Schauble "Won't Rule Out Default" iehi-feed-56762 Thu, 21 May 2015 15:19:27 GMT Has the Fed got a grasp on economic reality? Economists who don't understand where the vast majority of 'money' comes from (Paul Krugman has admitted that he can't recognize this ) are like heart surgeons who have only ever attended dental school.

They didn't spot the onset of the GFC because they didn't even know where to look for warning signs: The role of private debt in creating booms and busts is still ignored while an expanded money supply is being asked to do the heavy lifting of stimulating economic activity (for which it is totally unequal to the task) while the risk of creating asset bubbles goes largely ignored (once again)...

iehi-feed-56761 Thu, 21 May 2015 14:17:55 GMT Global "Missing Inflation Mystery" Risks Making Central Bankers Bystanders ... central banks have repeatedly overestimated inflation since the middle of 2011, according to Marvin Barth, head of European foreign-exchange strategy at Barclays Plc in London. To him, a mounting concern is that about a third of the decade-long decline in worldwide inflation is potentially inexplicable.

If he's right then what he calls "global missingflation" threatens the ability of Yellen and company to push up prices and raises questions over whether they will ever be able to declare mission accomplished and truly end their use of easy stimulus.


[In Barth's research, ] once he allowed for traditional drivers of prices such as demand or productivity, he found 35 percent of the slide in global inflation hard to pin down. Among the possible reasons could be deleveraging, technological progress, globalization, aging populations or China's deflationary impulse.

... the inflation puzzle is a reason for central banks to worry about the power of policy and may leave them reliant on factors over which they have less control such as commodities, currencies or wages to propel prices. Worse still is the risk that financial markets and the public lose faith in policy makers to control inflation. The inflation expectations of both over the next five years may start to suggest such doubts.

Of course this will continue to be a "mystery" as long as central bankers refuse to factor in asset inflation and other day-to-day expenses in the real world, such as financing costs.