Fed Up Friday: August 12 – 19

The US Federal Reserve Presidents have been busy this week, flexing their speculative muscles and antagonizing the markets. In case you missed it, here’s everything they’ve been up to in the past seven days.
Global Banks Abandon US Bonds: Largest Selloff since 1978
In total, $192 billion of US Treasury bonds have been dumped off by other nations’ central banks in the first half of 2016, according to CNN Money. That’s more than double the rate of 2015. What does this mean? The world economy seems to be showing an overall trend of drastic weakening. Many of the nations, which include China, Japan, France, and others, need quick cash in an attempt to stabilize their shaky economies.
Earlier this year, chief of the International Monetary Fund Christine Lagarde predicted the beginnings of a global economic destabilization.
‘There has been a loss of growth momentum,’ Lagarde said. ‘Emerging markets had largely driven the recovery and the expectation was that the advanced economies would pick up the ‘growth baton.’ This has not happened.’

This post was published at Schiffgold on AUGUST 19, 2016.