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AutomaticEarth<>Debt Rattle October 21 2018

(What a Football Day it was!)

Hello Everyone, hope ALL is Good?

{{Nonsense this route<> “Like a fox guarding the henhouse”-just have to cover base all in one-geez!}}


October 21, 2018 Posted by Raúl Ilargi Meijer at 9:40 am Finance


• The Global Dollar Shortage is Here – And It’s Becoming A Big Problem (Palisade)

• The Party’s Far From Over For The US Economy, As GDP Will Show (MW)

• Trump, Europeans Call Saudi Account Of Khashoggi Death Inadequate (R.)

• Trump Says US Will Pull Out Of Nuclear Arms Deal With Russia (AFP)

• Social Security Does Not Add To The Federal Deficit (F.)

• PM Tsipras Says EU Approved Greek Budget Without Pension Cuts (R.)

• 700,000 March To Demand A Final Say On Brexit (Ind.)

• Series Of Small Earthquakes Detected Near UK Fracking Site (G.)

• Facebook Shareholders Call For Zuckerberg To Be Kicked Out As Chairman (Ind.)

• What Has Google Ever Done for Us? (Varoufakis)

More dollars borrowed globally than the Fed ever issued. And now it issues fewer.

• The Global Dollar Shortage is Here – And It’s Becoming A Big Problem (Palisade)

The credit market – in my opinion – is indicating an inevitable ‘crunch’ coming up. And even worse – we’re seeing the global dollar shortage deepening. [..] Personally – I think this may be the trigger that kicks off a brutal, worldwide, financial crisis. . . For instance – just look at what’s happened with Emerging Markets because of a tightening Federal Reserve, a stronger dollar, and drying liquidity. Don’t forget – a dollar shortage is synonymous with disappearing liquidity. Which means we can expect more violent and sudden market crashes to occur – just like we saw over the last two weeks.

Stock markets (and bond markets) around the world took big losses. The only thing that really outperformed was gold. The fear of rising ‘real’ U.S. interest rates and slowing economic growth (especially from China) is making investors rethink their positions. Not to mention the cost of borrowing short-term dollars via LIBOR (aka London Interbank Offered Rate) is indicating aggressive financial tightening. Take a look at the 3-month U.S. dollar LIBOR rate – it just had its biggest one day jump since late May. And even more startling – it’s now at its highest level since 2008.



So what does this mean? Well – it’s indicating that the short-term borrowing of dollar denominated debt’s getting very expensive. And investors – especially overseas – are finding it harder and costlier to get their hands-on U.S. dollars. This isn’t a big surprise – but what’s making me worried is just how costly and scarce these dollars are becoming. . . Corporations worldwide borrowing dollars for business operations. And even ordinary citizens with mortgages and credit cards (which are mostly driven by LIBOR) will face higher interest payments.

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https://www.theautomaticearth.com/2018/10/debt-rattle-october-21-2018/