While central banks assure the population that there is nothing to worry about when it comes to paper money, which may or may not soon be banned if certain Harvard economists have their way, they have been quietly accelerating their withdrawals of gold from the biggest centralized depository of global gold in the world: the New York Federal Reserve.
The processes that fueled the economic growth over the last 30 years are now beginning to run in reverse, and when combined with the demographic shifts in the U.S., the impact could be far more immediate and prolonged than the media, economists and analysts are currently expecting...It is simply a function of the math.
“They’ve tried to solve the debt crisis by printing trillions of dollars of more debt, and somehow they expect the economy to grow under the weight of those burdens. We’re just borrowing new money to pay back old money. I would say that we’re in the late stages of Ponzi finance.”
"Well, clearly there are different responses to negative rates. If you’re a saver, they’re very difficult to deal with and to accept, although typically they go along with quite decent equity prices. But we consider all that and we have to make trade-offs in economics all the time and the idea is the lower the interest rate the better it is for investors."
After last week's surprise crude build (biggest in ~4 months) and builds across the entire complex, API reported a crude build of 942k barreles (just shy of expectations of +1.5mm) and while Cushing and Gasoline saw draws, Distillates saw a major 3mm barrel build (+275k exp). The initial reaction in crude was to extend the day's losses, back below $46.50...
Yesterday, the White House announced that the US had met President Obama’s goal of admitting 10,000 Syrian refugees into the country; it did so ahead of schedule. So where are they going: the top state destination for refugee influx are the states of Michigan and California.
There seems to be a lot of smug certitude that Trump is definitely destined to lose the election. We are not so sure. At the very least we would think that the race between Trump and Clinton is far tighter than it appears according to recent polls. This bring us back to a point we mentioned last week: the market is not pricing in the “risk” of an election upset.
“We still have plenty of tools,” remarked a spokesperson: “Janet Yellen, Mark Carney, Andy Haldane, Mario Draghi – does any remote, unelected bureaucracy anywhere in the world have a bigger set of tools?”
With hundreds of millions poured into presidential and congressional campaigns in the U.S. it's hard to know just how much "influence" you're "buying" in those races...that's why George Soros is instead "investing" millions into races of district attorneys which "exercise the greatest discretion and power in the system."
If the ERP is responsible for 92% of the S&P500 move since 2012, or just over 800 points, that would imply that central bank policies are directly responsible for approximately 40% of the "value" in the market; any moves to undo this support could result in a drop that leaves the S&P in the neighborhood of ~1,400.
With Europe desperate to boost its dwindling public coffers and only starting tits anti-tax avoidance campaign, AAPL is only the start in the European Commission's crackdown. As the WSJ writes, following today's ruling that Apple got an unfair advantage over its competitors because of help it got from Ireland government’s, the EU’s antitrust regulator is likely next to turn to two other ongoing tax investigations on its docket: Amazon.com and McDonald's.
Four years ago we first exposed the dismal fact that in the U.S., for the lowest income American Dreamers, work is punished. Sadly, the situation has grown worse as buying votes amid a burgeoning welfare state has left millions in the so-called 'low-wage-trap' leaving Americans teetering on the welfare cliff.