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Why the Dollar Rules the World — And Why Its Reign Could End
Why the Dollar Rules the World — And Why Its Reign Could End President Donald Trump wants a lower US dollar. He complains about the over-valuation of the American currency. Yet, is he right to accuse other countries of a “currency manipulation”? Is the position of the US dollar in the international monetary arena not […]
Want To See What Stagflation Looks Like?
Want To See What Stagflation Looks Like? Another undoubtedly firm inflation report as the tariff effect works its way through the pipeline. This means one thing; the stagflation narrative only strengthened today as the US economy slows in the face of supply side inflation. Want to see what stagflation looks like? 6m Avg. NFP = […]
“This Is Blowing Up:” Texas Energy Costs Hit Record High Monday As Heatwave Strikes
“This Is Blowing Up:” Texas Energy Costs Hit Record High Monday As Heatwave Strikes Power demand in Texas hit a record high on Monday as consumers turned up their air conditioners to escape a heatwave that is boiling much of the southern Plains over the next 7-10 days. “A large ridge of high pressure has […]
Economic Storm Trump Will be Blamed For Because of Bad Advisers
Economic Storm Trump Will be Blamed For Because of Bad Advisers There is a very Dark Cloud hovering over the world economy and at the center of this cloud lies not just Europe, but Germany – the strongest economy holding up all of Europe. The German manufacturing sector is in freefall. Trump will be blamed […]
BC Government Frets Over Climate Change While Heavily Subsidizing Fracking Companies
BC Government Frets Over Climate Change While Heavily Subsidizing Fracking Companies Worse, the giveaway probably isn’t needed, with the global industry desperate for new gas fields. We’re in a climate crisis. So why did the B.C. government give oil and gas companies $663 million in subsidies last year so they would produce more fracked natural […]
Blain’s Morning Porridge – Aug 13 – Argentina, Legarde and Europe
Blain’s Morning Porridge – Aug 13 – Argentina, Legarde and Europe “I’m going down to Yasgur’s farm, gonna join me a rock and roll band.…” Global Credibility Under Pressure – We’ve been Tangoed! This morning’s headlines are screaming how Argentina and President Mauricio Macri have precipitated yet another crisis upon the stressed geopolitical battlefront… Relax. […]
The Bank’s ‘Stress’ Tests
THE BANK’S ‘STRESS’ TESTS MY REPORT ON THE BANK OF ENGLAND’S LATEST (NOVEMBER 2018) STRESS TESTS WAS PUBLISHED BY THE ADAM SMITH INSTITUTE ON AUGUST 3RD. The purpose of the stress tests is, in essence, to persuade us that the banking system is in good shape on the basis of a make-believe exercise which purports to show what might […]
IMF Recommends “DEEP” Negative Interest Rates as the Next Tool
IMF Recommends “DEEP” Negative Interest Rates as the Next Tool The IMF has continued to assume that the zero-bound on interest rates can be a serious obstacle for fighting recessions on the part of the central banks. The IMF maintains that the zero-bound is not a law of nature; it is a policy choice. The latest in […]
Chinese Banks No Longer Trust One Another As Repo Rates Skyrocket
Chinese Banks No Longer Trust One Another As Repo Rates Skyrocket For those who have grown bored with the ongoing US-China trade war whose escalation was obvious to all but the dumbest BTFD algos, the biggest news of the past week was that yet another Chinese bank was bailed out by the Chinese government – the third […]
David Rosenberg: “These Are Truly Historic And Dangerous Times”
David Rosenberg: “These Are Truly Historic And Dangerous Times” We are living in dangerous times. Mostly, everyone I speak to lives in the here and now. They seem more interested in telling people how crazy cheap the stock market is and how crazy expensive the Treasury market is, rather than trying to look at the […]
U.S. Currency Wars With China—Past And Present In a purely political move, the Trump administration (read: the U.S. Treasury) has branded China as a currency manipulator. This is an act of war. After President Trump announced that even more tariffs would be imposed on China, the markets took the value of the Chinese yuan down […]
Getting to a Special State of Ugly
Getting to a Special State of Ugly There are certain phrases – like “trust me” or “I got this” – that should immediately provoke one’s suspicion. When your slippery contractor tells you, “trust me, your kitchen renovation will be done before Christmas,” you should be wary. There’s no way it’ll be done until late spring. […]
Weekly Commentary: “Hot Money” Watch
Weekly Commentary: “Hot Money” Watch In the People’s Bank of China’s (PBOC) Monday daily currency value “fixing,” the yuan/renminbi was set 0.33% weaker (vs. dollar) at 6.9225. Market reaction was immediate and intense. The Chinese currency quickly traded to 7.03 and then ended Monday’s disorderly session at an 11-year low 7.0602 (largest daily decline since […]
