While the summer doldrums continue, with little market-moving newsflow overnight and zombified volumes, US futures crept higher and European shares rose after EU PMIs printed modestly better than expected, while a return to dollar weakness pushed emerging markets higher, even if it failed to boost oil which as we noted last night was downgraded by Goldman on various fundamental reasons.
"Large-scale asset purchases and forward guidance about the future path of the federal funds rate have almost no ability to offset a shock in current circumstances, but down the road may be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates in some, but not all and maybe even not most, circumstances."
A large part of the reason why the UK had to be such a significant net contributor was that most EU members couldn’t scrape up their “fair share.” Who’s going to pick up the tab when that flow of revenue ends?
"The stock market is at record highs and the bond market is acting as if this were the Great Depression... the Fed is virtually a hostage of the financial markets. When they sputter, let alone fall, the Fed frets and steps in... the Fed is justified in that belief because it is responsible to a great degree for the elevation of financial asset values... and to me, gold is a very timely way to invest in monetary disorder."
Recently,an economist from DnB (Norway’s largest bank) stated that Norway is not in a housing bubble although conditions resemble one and prices can still fall. The article states that a socialist country with lots of benefits can handle higher debt levels than a capitalist one. It fails to acknowledge the impact of the eroding oil foundation on the long term economy.
How much longer will the citizens of the world put up with a situation in which warmongers with ties to the military-industrial complex are allowed to stoke up international tensions? The next time you read or hear someone issue stark warnings about the “Russian threat” - and why NATO needs to hike its spending to deal with it - just follow the money trail. It’s likely to be revealing.
Unless the U.S. wants to confront these players directly, it has no choice but to accept that they have lost a war they directly and indirectly started through covert CIA operations that began in 2011 (and as some would argue, well before that).
"Supply continues to feature the cross currents of rising low-cost supply, declining high-cost production, and new project ramp up. In fact, marginally more bearish data recently than we had assumed suggests in our view that the recent price rally should stall... While discussions of an OPEC freeze and a weakening dollar have been catalysts for the sharp reversal in oil prices this month, we believe neither will be sufficient to support prices much further"
As of last Friday, taxi drivers in New York City no longer have to pass an English proficiency exam to get behind the wheel... Which makes perfect sense, because communicating with passengers is not really a big part of the job.
"... Then within two weeks, clean water supplies would run out. Within four weeks to eight weeks, there wouldn’t be coal delivered to power plants and electricity would start shutting down. And when that happened, about a quarter of our pipelines use electricity, and so natural gas plants wouldn’t be fed natural gas and they’d start shutting down. It’s a big interdependent system. That’s part of the problem..."
Instead of impeachment proceedings and his ultimate resignation for the juvenile break in at the headquarters of the nation’s other ruling crime syndicate, Nixon should have been imprisoned for this deliberate and destructive act which has led, in large measure, to the nation’s crushing and insurmountable debt burden, reoccurring booms and busts, and now economic stagnation.
According to Jeffrey Miller, "all the conditions for a market crash are in place" but when it happens is anyone's guess and ultimately depends on "how dumb things will get before" central banks finally stop.