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The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play

The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play The most important piece of news announced today was also, as usually happens, the most underreported: it had nothing to do with US jobs, with the Fed’s hiking intentions, with China, or even the ongoing “1998-style” carnage in emerging markets. Instead, […]

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How China Cornered The Fed With Its “Worst Case” Capital Outflow Countdown

How China Cornered The Fed With Its “Worst Case” Capital Outflow Countdown Last week, in “What China’s Treasury Liquidation Means: $1 Trillion QE In Reverse,” we took a look at the potential size of the RMB carry trade, noting that according to BofAML, the unwind could, in the worst case scenario, be somewhere on the […]

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Why QE4 Is Inevitable

Why QE4 Is Inevitable One narrative we’ve pushed quite hard this week is the idea that China’s persistent FX interventions in support of the yuan are costing the PBoC dearly in terms of reserves. Of course this week’s posts hardly represent the first time we’ve touched on the issue of FX reserve liquidation and its […]

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It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington

It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that China had dumped a record $143 billion in US […]

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China Soars Most Since 2009 After Government Threatens Short Sellers With Arrest, Global Stocks Surge

China Soars Most Since 2009 After Government Threatens Short Sellers With Arrest, Global Stocks Surge Here is a brief sample of some of the measures the Chinese government and the PBOC have unleashed in just the past ten days to prop up the crashing market include: a ban on major shareholders, corporate executives, directors from […]

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Will Greek “Hope” Offset “Limit Down” Contagion From The “Frozen” China Crash

Will Greek “Hope” Offset “Limit Down” Contagion From The “Frozen” China Crash Today’s market battle will be between those (central banks) “hoping” that a Greek deal over the weekend is finallyimminent (which on one hand looks possible after a major backpeddling by Tsipras – who may never have wanted to win the Greferendum in the first place – […]

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“It’s Time To Hold Physical Cash”, Fidelity Manager Warns Ahead Of “Systemic Event”

“It’s Time To Hold Physical Cash”, Fidelity Manager Warns Ahead Of “Systemic Event” As Jamie Dimon recently noted while discussing the perils of illiquid fixed income markets, the statistics around “tail events” can no longer be trusted. In other words, 6, 7, or 8 standard deviation moves that in theory should only happen once every two or […]

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PetroYuan Proliferation: Russia, China To Settle “Holy Grail” Pipeline Sales In Renminbi

PetroYuan Proliferation: Russia, China To Settle “Holy Grail” Pipeline Sales In Renminbi Last week, in “The PetroYuan Is Born: Gazprom Now Settling All Crude Sales To China In Renminbi,” we discussed the intersection of two critically important themes which have far-reaching geopolitical and economic consequences. The first is the death of petrodollar mercantilism, the USD […]

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“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming”

“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming” Ali and Frazier, Laurel and Hardy, Mayweather and Pacquiao, Liesman and Santelli, and now Schiff and Maloney. Peter and Mike join clash of the titan-like to discuss their investment strategies and expose the charts the government doesn’t want you to seeas […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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