Author Robert Kiyosaki: We’re in a Global Economic Collapse

Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” tells Newsmax TV that the global economy has collapsed and Wall Street has been manipulated by the Federal Reserve and US Treasury.

He said the only way to survive such a treacherous and volatile investing environment is with a solid financial education.

“The global economy is in a collapse right now,” he told “Newsmax Prime.” Continue reading

As Euro Slides, Strategists Cut Forecasts

Some Investors See Single Currency Falling to Parity With U.S. Dollar

A day after the European Central Bank unveiled its bond-buying program, the single currency still was in free fall, blowing past analysts’ expectations for how low the euro can go.

Some investors now say the euro could fall to the point where it is on equal footing with the U.S. dollar for the first time since it climbed above the buck in late 2002.

“If you would have asked me a few months ago, I would’ve said that parity could be in the cards in the years ahead. Now, we can’t rule it out anymore even by the end of this year,” said Thomas Kressin, head of European foreign exchange at Pacific Investment Management Co., or Pimco, which has $1.68 trillion under management. Continue reading

ECB launches bigger-than-expected QE program

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European Central Bank (ECB) President Mario Draghi has announced the launch of an expanded monthly 60 billion euro ($70 billion) private and public bond-buying program that will last until at least September 2016.

The long-anticipated asset-purchasing program—touted as the euro zone’s answer to the U.S. Federal Reserve’s quantitative easing (QE) programs—will start this March, Draghi told reporters at his regular media conference on Thursday. Continue reading

A Message From Davos: Quantitative Easing Alone Won’t Solve Europe’s Ills

Davos, Switzerland:  Financial markets have been obsessing for months about the timing, size and structure of a European Central Bank bond-buying programme that seems likely to be unveiled today.

But business leaders, policymakers and celebrity academics gathered at the World Economic Forum in Davos had a message for all the “quantitative easing” (QE) enthusiasts: don’t count on the ECB to resolve Europe’s economic woes. Continue reading

IMF Chief Says Global Economy Faces ‘Very Strong’ Headwinds

Strong headwinds from weak investment, substantial debt burdens and high unemployment are preventing a pickup in global economic growth despite a strengthening U.S. recovery and tumbling oil prices, International Monetary Fund Managing Director Christine Lagarde said.

A healthier U.S. and cheaper energy “won’t suffice to actually accelerate the growth or the potential for growth in the rest of the world,” the head of the emergency lender to nations said in a speech Thursday at the Council on Foreign Relations in Washington.

“If the global economy is weak, on its knees, it’s not going to help,” said Ms. Lagarde in remarks previewing the IMF’s latest forecasts for the global economy due out on Monday. Continue reading

US taper risks fresh crisis, says Deutsche Bank

Deutsche Bank says policymakers have become so used to “throwing liquidity” at structural problems that asset prices had become distorted and risked triggering a fresh crisis

Scaling back the Federal Reserve’s massive bond-buying programme risks throwing the global economy into disarray next year, Deutsche Bank has warned, with lenders unable to cope with higher borrowing costs, despite stronger economic growth. Continue reading

‘Unprecedented’ $80 Billion Pulled From Bond Funds

A record amount of money poured out of exchange-traded and mutual bond funds in June, according to a fresh report by TrimTabs, nearly double the amount pulled out of bond funds at the height of the financial crisis in October 2008.

Investor fears over the scaling back of the U.S. Federal Reserve’s bond purchasing program has seen the yield on 10-year Treasurys rise sharply to 2.5 percent as $80 billion left bond funds in June, according to the research.

“The herd is scrambling for the exit this month as bond yields back up across the board and central bankers hint that they might provide less monetary stimulus in the future,” TrimTabs CEO David Santschi said in a research note on Sunday. “We estimate that bond mutual funds have lost $70.8 billion in June through Thursday, June 27, while bond exchange-traded funds have lost $9.0 billion.Continue reading