In these weeks we have read a lot about the so-called trade war.  However, this is better described as a negotiation between the largest consumer and the largest supplier with important political and even moral ramifications. This is also a dispute between two economic models. Continue reading Much More Than A Trade War →

The European Central Bank continues to disproportionately inflate the debt bubble of the Eurozone, while the economic slowdown of the main European economies worsens. What was designed as a tool for governments to buy time in order to carry out structural reforms and reduce imbalances, has become a dangerous incentive to perpetuate the excessive spending and increase debt under two very harmful and wrong excuses: That there is no problem as long as debt is cheap and that there’s no inflation. Continue reading The ECB’s Monetary Trap →

The amount of bonds with a negative yield is higher than $14 trillion, according to Bloomberg. This means that by the end of 2020, almost 25% of the Global Government Bond Index will have negative rates.

Who buys these bonds and why?

Continue reading Who Buys Negative Yield Bonds? →

Rare Earth Reserves Are Not A Trade War Gamechanger.

Why:

1. There are plenty. The US has more than 140 years of its annual consumption in domestic reserves and can use alternative sources, benefitting other emerging market economies. Continue reading Rare Earths Are No Weapon In A Trade War →