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Fake Growth? Exploring The Big Mystery In Friday’s GDP Report
Fake Growth? Exploring The Big Mystery In Friday’s GDP Report We have become accustomed to the miraculous economic data ‘surprises’ that are propagandized out of China month after month – not too hot, not too cold, but just right – but in the latest US GDP data, as MarketWatch’s Greg Robb investigates, mystery theater comes […]
GDP: Fake News
GDP: Fake News The first-quarter GDP number was released this morning. And at 3.2%, it came in far above estimates. Consensus was about 2.3%. It was also the highest Q1 GDP print since 2015. But there’s probably less here than meets the eye. About half the GDP gain came from a surge in inventories and […]
Weekly Commentary: Officially on “Periphery” Contagion Watch
Weekly Commentary: Officially on “Periphery” Contagion Watch This week saw all-time highs in the S&P500, the Nasdaq Composite, the Nasdaq100, and the Philadelphia Semiconductor Index. Microsoft’s market capitalization reached $1 TN for the first time. First quarter GDP was reported at a stronger-than-expected 3.2% pace. So why would the market this week increase the probability […]
JPMorgan: We Are Fast Approaching The Point Where Banks Run Out Of Liquidity
JPMorgan: We Are Fast Approaching The Point Where Banks Run Out Of Liquidity Last week we first noted that something unexpected has been going on in overnight funding markets: ever since March 20, the Effective Fed Funds rate has been trading above the IOER. This was unexpected for the simple reason that it is not supposed to happen […]
Third and Final Leg of Stock Market Crash in October or Sooner
Third and Final Leg of Stock Market Crash in October or Sooner I shared the first part of this series of articles last week, explaining why I expect the third and final leg of the crash that began in October 2018 to occur in October 2019, or sooner, and see the S&P 500 fall ~30% […]
China Tries to Muscle in on Dollar as Dominant ‘Payments Currency,’ But It’s a Thankless Slog
China Tries to Muscle in on Dollar as Dominant ‘Payments Currency,’ But It’s a Thankless Slog Dollar Hegemony is a tough nut to crack. China is taking another baby step in promoting the internationalization of the renminbi and nibble on the hegemony of the US dollar: It’s pushing a proposal to add a pile of […]
Push Them Hard Enough and the Productive Class Will Opt Out of Servitude
Push Them Hard Enough and the Productive Class Will Opt Out of Servitude People love their big paychecks, but they also value their sanity. One of the most astonishing manifestations of disconnected-from-reality hubris is public authorities’ sublime confidence that employers and entrepreneurs will continue starting and operating enterprises no matter how difficult and costly it becomes […]
Why a Chernobyl-like Financial Disaster is Inescapable
Why a Chernobyl-like Financial Disaster is Inescapable In the early morning hours of April 26, 1986 – roughly 33 years ago – things went horribly wrong in the town of Pripyat, in northern Soviet Ukraine. Reactor No. 4 at the V. I. Lenin Nuclear Power Plant, also known as the Chernobyl Nuclear Power Plant, was […]
Americans Brace For Shock Surge In Everyday Food Prices
Americans Brace For Shock Surge In Everyday Food Prices The ‘patient’ Fed has been lamenting the “lack of inflation” for far too long. It is about to get its wish. American food merchants are struggling to import fruits and vegetables from Mexico as wait times at port of entries along the Mexico–US border have surged because of a shift […]
The US Government Debt Crisis
The US Government Debt Crisis This article explains why the US Government is ensnared in a debt trap from which there is no escape. Its finances are spiralling out of control. In the context of a rapidly slowing global economy, the budget deficit can only be financed by QE and bank credit expansion. Do not […]
Saudi Arabia Will Cap The Oil Price Rally
Saudi Arabia Will Cap The Oil Price Rally The US said on Monday that it won’t extend the sanctions waivers for eight countries importing crude oil from Iran. The move could remove around 1.1 million barrels per day from the market. Although Rystad Energy anticipated a further tightening of sanctions, the details in the announcement […]
Oil Tumbles After Trump Says “He Called OPEC, Gas Prices Are Coming Down”
Oil Tumbles After Trump Says “He Called OPEC, Gas Prices Are Coming Down” WTI crude futures have tumbled back to a $63 handle, breaking a key technical support, following President Trump comments that he has called OPEC and “gasoline prices are coming down.” The last 107 days have seen an almost unprecedented surge in gas prices […]
Why Warning About A Bubble For A Decade Is Completely Rational
Why Warning About A Bubble For A Decade Is Completely Rational In my experience as someone who warns about the development of dangerous economic bubbles (both the mid-2000s U.S. housing bubble and the post-2009 “Everything Bubble“), I have been criticized literally thousands of times as the stock market surges year after year and the economy […]
Can Humanity and Nature Co-Exist Under Capitalism?
Can Humanity and Nature Co-Exist Under Capitalism? Two new documentaries tackle the all-important question of our age, namely how humanity and nature can co-exist in a period of insurmountable capitalist contradiction, especially when humanity takes the form of small businesspeople hoping to exploit natural resources under duress. Opening at The Landmark at 57 West on […]
Bank of Japan & the Bond Crisis
Bank of Japan & the Bond Crisis BoJ Statement 4-24-2019 The Great Financial Unknown is now upon us. After 10 years of Quantitative Easing, the European Central Bank (ECB) in Europe owns 40% of the national debts in the EU and it can neither sell them nor stop buying without creating a Panic in Interest […]
