Yield Curve Inverts, Yuan Slides As China GDP Growth Slows

Despite all the talk of deleveraging, China did anything but according to its most recent data but the lagged impact of the tumbling credit impulse is starting to show up in the broader macro data. Despite the National Congress being under way (and recent credit spikes and positive PBOC hints) GDP growth limped lower to the expected +6.8% YoY, and fixed asset investment growth was the weakest in over 17 years...

Mike Krieger Is "Surprisingly Optimistic" About The Future... But There's A Catch

"...a meaningful percentage of the world’s population already understands that something’s off in a major way and that things aren’t working. More will come around to this view in the years ahead, and those with the power will become increasingly panicky. This will create the window of opportunity for humanity to take a great leap forward. "

Milton Friedman & Conservatives Are Wrong In Education

"There is only one solution to the educational morass in which Americans find themselves: Separate school and state, just as our ancestors separated church and state. Repeal all school compulsory-attendance laws and school taxes and sell off the school buildings. End all government involvement in education, including licensing of schools. Establish a total free-market educational system."

The Dollar Funding Shortage: It Never Went Away And It's Starting To Get Worse Again

Negative cross currency basis swaps indicate that the structural tightness in dollar liquidity never disappeared despite the weaker dollar. If dollar funding markets get a lot tighter again, this won’t be good news for EM markets with offshore (Euro) dollar debt in the region of $10 trillion. Rolling over dollar debt periodically will be uncomfortable, to say the least, for some of the region’s banks.

The Other Alternative Currency

With the nearly daily moves to record highs among the hundreds of cryptocurrencies that currently exist, talking about ‘regular’ currencies seems about as out-of-fashion as that hideous shoulder pad trend from the 1980s...

The State Of Illinois Is "Past The Point Of No Return"

"The State of Illinois is past the point of no return. It does not have the ability to raise taxes or cut spending to the degree necessary to reduce the annual cost of bond and retiree benefits from 33% to a sustainable level...The insolvency is not the result of too much bonded debt, but rather the government promising retirement and other post-employment benefits that aren’t affordable."

Catalan Leader Vows To Declare Independence If Spain Triggers "Nuclear Option"

The Catalan leader said today he would formally declare independence Thursday morning if Mariano Rajoy follows through with his threat to invoke the so-called "nuclear option" of Article 155 and suspend Catalonia’s regional autonomy - a decision that would likely lead to the arrest of Puigdemont and his government, followed by another violent crackdown on separatists.

American Express CEO Ken Chenault Is Retiring

American Express Company said today that its Board of Directors has appointed Stephen J. Squeri Chief Executive Officer and elected him Chairman of the Board, each effective February 1, 2018. Mr. Squeri, 58, will succeed Kenneth I. Chenault, 66, who will retire after a 37-years with the Company.