Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us 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.

iehi-feed-56760 Thu, 21 May 2015 14:13:10 GMT Guilty Pleas and Heavy Fines Now Just Cost of Business for Wall St. iehi-feed-56759 Thu, 21 May 2015 14:06:34 GMT ‘Shale-ionaires' Suffering from Wave of Bankrupt Oil Drillers - Bloomberg Business iehi-feed-56758 Thu, 21 May 2015 14:02:34 GMT Putin Pans Ukraine's Debt Moratorium As "De Facto Default", Threatens Court iehi-feed-56756 Wed, 20 May 2015 18:34:31 GMT Fed Is Unlikely to Raise Interest Rates in June, Minutes Show iehi-feed-56755 Wed, 20 May 2015 18:32:19 GMT Benjamin Lawsky to Step Down as New York's Top Financial Regulator iehi-feed-56753 Wed, 20 May 2015 15:34:15 GMT Dead Nation Walking | KUNSTLER iehi-feed-56752 Wed, 20 May 2015 14:24:42 GMT Euro plunges as ECB official pledges to speed up bond purchases iehi-feed-56751 Wed, 20 May 2015 14:23:47 GMT Charts: US Money Velocity At All-time Low iehi-feed-56750 Wed, 20 May 2015 14:17:13 GMT Fee'd up: 31 Worst Fees in America iehi-feed-56749 Wed, 20 May 2015 14:08:06 GMT Belligerent US Refuses To Cede Control Over IMF In Snub To China iehi-feed-56746 Tue, 19 May 2015 17:47:13 GMT David Stockman -- We Are Now Entering The Terminal Phase Of The Global Financial System That Will End In Total Collapse iehi-feed-56745 Tue, 19 May 2015 17:44:14 GMT Davidowitz on Closing Record Number of Stores, Malls; "Death of Retail" iehi-feed-56744 Tue, 19 May 2015 16:43:36 GMT China's lodestar is not reform but avoiding chaos iehi-feed-56742 Tue, 19 May 2015 16:29:03 GMT Greek Leaders Say Deal Is Within Reach Amid Creditor Doubts iehi-feed-56741 Tue, 19 May 2015 16:16:22 GMT Ratings agency Fitch to downgrade many European banks