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“The Central Bank Will Intervene”: PBOC Said To Sell Reserves If Yuan Drops Below 7.00

“The Central Bank Will Intervene”: PBOC Said To Sell Reserves If Yuan Drops Below 7.00 According to the latest data from China’s SAFE, net FX outflows from China picked up to US$21BN in September (vs. US$11BN in August) and the highest since mid-2017 with Goldman noting that “outflow might have increased moderately further in October, but […]

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BOJ Intervenes For Third Time In A Week: Offers To Buy Unlimited Bonds To Stabilize Markets

BOJ Intervenes For Third Time In A Week: Offers To Buy Unlimited Bonds To Stabilize Markets Ahead of the potentially dramatic BOJ decision tonight, the Japanese bond market is becoming increasingly jittery. After 10Y JGBs sold off early in the session, with yields rising as high as 0.11% – the highest level in almost a […]

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This Is What A Pre-Crash Market Looks Like

This Is What A Pre-Crash Market Looks Like The only other times in our history when stock prices have been this high relative to earnings, a horrifying stock market crash has always followed.  Will things be different for us this time?  We shall see, but without a doubt this is what a pre-crash market looks […]

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Why According To One Bank, Massive Central Bank Intervention Is Imminent

Why According To One Bank, Massive Central Bank Intervention Is Imminent Any time the relative performance of global financials to US Treasuries has stumbled as far as it has, as shown in the chart below, it has meant one thing – a major central bank intervention was imminent.  At least that’s the interpretation of BofA’s Michael […]

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Mexican Peso Dives, Fretting Begins About Peso Crisis

Mexican Peso Dives, Fretting Begins About Peso Crisis “Everyone got used to playing with free, easy money. Now it’s going to cost us.” On July 1, the Financial Times wondered just how low the Mexican peso could go, likening the ill-fated currency to a limbo dance: “Every month, it gets just that little bit lower.” In […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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