Candidate Trump loved a strong dollar, said the Fed's low interest created inequality and a false economy and hinted Janet Yellen needed to go. Now that he’s the president, he loves all three and wants them to stay.
"What we’ve had so far this week, I know it’s only Tuesday, has been a repricing without the benefit of meaningful price discovery along the way. Gaps during the Asia-Pacific opening are one thing. Ones followed by flat-lined price action suggest order books emptied followed by “So what do we do now?” And if there isn’t a quick follow-through in momentum, the next question will be “What have we done?”
Trump said on Monday that he is open to waiting until September to secure funding for said wall, a flop that would clear the way for Congress to strike a deal to avoid a government shutdown on Saturday.
"We’re going to be putting a 20% tax on softwood lumber coming in, a tariff on softwood coming into the United States from Canada" said Donald Trump, and Wilbur Ross added that "we tried to negotiate a settlement but we were unable."
"On April 26, we’ll go one step further and stage a very realistic emergency event involving multiple sites and actors posing as the casualties. However, there is no reason for residents to be alarmed because the exercise will occur in a controlled environment."
Austerity is over, proclaimed the IMF this week. And no doubt attributed that to the ‘successful’ period of ‘five years of belt tightening’ a.k.a. ‘gradual fiscal consolidation’ it has, along with its econo-religious ilk, imposed on many of the world’s people. Only, it’s not true of course. Austerity is not over. You can ask many of those same people about that. It’s certainly not true in Greece.
As Saudi Arabia's deputy crown prince pushes his nation's Vision 2030 economic overhaul and crows of the $2 trillion Saudi Aramco valuation(ahead of its potential IPO), WSJ reports that officials at the state-owned oil company are using internal value estimates to $1.3 to $1.5 trillion, calling bin Salman's estimate "unrealistic and mind blowing."
Not long into Trump’s presidency, he announced his plans to increase the country's defense budget in 2018 by 54 billion dollars. The extra money is seen as necessary in order to "rebuild the depleted military of the United States of America at a time we most need it".
Would the French parliament go along with relaxing labor laws, cut business taxes? Would the parliament allow a referendum on the Euro? If the answers are no and no, then what’s changed? The real battle over the survival of the eurozone will take place in Italy, not France.
While Hawaiian officials are pushing to re-open fallout shelters, the people of another island (considerably closer, and well within range) are actively preparing for a worst case scenario from North Korea. As Reuters reports, sales of nuclear shelters and radiation-blocking air purifiers have surged in Japan in recent weeks as North Korea has pressed ahead with missile tests in defiance of U.N. sanctions.
Mister Maduro, in order to buy a bit more time in the presidential mansion, is selling the golden goose. For those who wonder why it’s so often the case that a nation that’s been knocked down economically rarely rises up again within the same generation, the answer is manifestly clear in Venezuela...
"There are many things the President does not know. This is intentional on the part of the moneyed interests that control the very fabric of our society...Patiently these elitists have been awaiting the day when their “1984” society is a reality, crafting and shaping it all along throughout the decades."
Late last week, lawyers representing the Cherokee Nation filed a lawsuit against major pharmaceutical companies, claiming they have pumped dangerous painkillers into Native American communities in Oklahoma. The Washington Post obtained a copy of the court filing and reported that the companies are accused of breaking laws by “failing to prevent the diversion of pain pills to the black market.”
In light of the recent spate of emergency drills and nuclear attack preparedness plans across the United States, it seemed notable that an unknown amount of stolen radioactive material has prompted the head of national emergency services to issue an alert today to nine Mexican states warning "don't open it."
We all knew it was coming and now it has finally been confirmed that the Senate's favorite Socialist will introduce legislation later this week calling for a $15 federal minimum wage. For those silly 'math' people out there, that's a mere 107% increase in minimum wage over just a few short years, which we suspect will at least slightly outpace inflation over the same period.
What all this warrants is extreme caution in Bubbleville. With geopolitical risk flashing bright red, half percent GDP growth, record high equity valuations and a delusional Fed that continues threatening interest rate normalization; the market’s reality check is surely imminent.
Despite its carefully-crafted image as an essential public servant, Griffin concludes it is anything but. The Fed is a private cartel that has connived its way to tremendous advantage and power, secretly (and not-so-secretly) plundering the American people of their treasure and freedoms.