Citi's Take On What Yesterday's Market Action Means For FX, And What To Look For In Today's NFP

Tyler Durden's picture

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PierreLegrand's picture
Beyond the Welfare State…Must Read

This article will become as influential as Angelo M. Codevilla’s article regarding the elite. It does worry me that if Codevilla is right then there will be problems trying to reform the behemoth that is the US Government. Mainly stemming from the fact, as outlined in, America’s Ruling Class — And the Perils of Revolution, that the elite, both republican and democratic elite, love the power of the welfare state. They have no incentive to repair it unless we force them. The amount of force that will be required is the question of the day. Still for the hopeful this is as good a way forward to reforming that monster we call the Federal Government as any I have read. Certainly better than the nonsense of nipping away at the margins that so many of the Republicans seem to be so enamored by.

malek's picture

Thanks for the link to that article with an excellent analysis portion!!
(It would be even better if not for associations to the false left-right-paradigm, and repeated "we can right the ship without touching existing beneficiaries," which are mathematically unsound and drift off into propaganda and political posturing.)

This paragraph rattled me:

Under the rules of the modern welfare state, we give up a portion of the capacity to provide for ourselves and in return are freed from a portion of the obligation to discipline ourselves. Increasing economic collectivism enables increasing moral individualism, both of which leave us with less responsibility, and therefore with less grounded and meaningful lives.

I had never before connected sweeping individualism to be a direct effect of the welfare state...

DavidC's picture

"The string of bad economic releases is consistent enough and bad enough that a weak NFP number tomorrow is risk off and USD positive".

I wonder if we could get to the stage where the Dollar is negative AND risk off - a double whammy in other words?