The monetary voodoo imposed upon us by criminal central banks, and rubber-stamped by puppet politicians is the ultimate extreme in financial corruption. The inevitable result of this systemic criminality can only be the complete economic destruction of the Western world.
US bank stocks are exuberantly listening to mainstream media pushers as the hopes of a double-rate-hike-rainbow has sent S&P Financials to their highest since Dec 2015. However, despite the rise in implied rate-hike odds, the Treasury curve is utterly collapsing (which is what really matters for NIM) with 2s30s now at its lowest since 2007...
German vice chancellor Sigmar Gabriel slammed Britain, saying the island nation must not be allowed to “keep the nice things” that come with EU membership without taking responsibility for the fallout from Brexit. Gabriel warned if the issue was badly handled and other member countries followed Britain’s lead, Europe would go “down the drain” adding that "if we organise Brexit in the wrong way, then we’ll be in deep trouble."
Having jumped miraculously from -18 to -1.3 in July, August's Dallas Fed plunged back to -6.2 - contracting for the 20th month in a row. The worse than expected headline data came despite a rise in new orders as the number of employees, average workweek, and capex all plunged into contraction. Hope also tumbled from 18.4 to 7.0 with inventories and new orders expected to slow.
"...for 54 years we have been voting for the Democratic Party like no other race in America. And they have not given us the same loyalty and love that we have given them. We, as black people, have to reexamine the relationship. We’re being pimped like prostitutes and they’re the big pimps pimping us politically... promising us everything and we get nothing in return..."
The Bank of Japan could announce a "massive stimulus program" as soon as September, according to the CIO of UBS Wealth Management which allocates $2 trillion in assets. "It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle... They could announce a massive stimulus program both on the monetary and fiscal side. Right now, it looks like they are going to use more stimulus."
If we believe the mainstream media and the Establishment it protects and promotes, Trump has no chance of winning the presidential election. But suppose this election isn't about Trump or Hillary at all.
After Friday's Jackson Hole repricing of Fed hike expectations, which made it clear that the fate of a September rate hike is now in the hands of the August payrolls number, the main risk event of the week is therefore this Friday's US NFPs for which consensus expects a reading of 180K, down from last month's 217K print. A number substantially above this will make a September hike virtually certain, and potentially risks roiling markets as good news will likely be bad news this time around.
This weekend the ad hominem attacks against Donald Trump took a sharp escalation when first a former Obama advisor, then a republican commentator, following by entertainment stars took sharp shots at the republican candidate.
Central bankers these days are seriously trapped. They cannot now reverse their policies for that means they have to admit that they have failed. That is far more serious than you might imagine. To even entertain backing down from negative interest rates means they have to admit that Keynesian/Marxist economics has failed and therein socialism, which is based upon the very principle that government can and is capable of managing the economy.
A broadly in-line-with-expectations print in US income and spending data (+0.4% MoM and +0.3% MoM respectively) hides a bigger problem for the consumption-driven US economy. For the first time since March, the savings rate increased as US consumers dared not spend above their means (up from 5.5% to 5.7%).
Last year, over one million refugees poured into Germany. Chancellor Angela Merkel said,“Wir schaffen das” — “We can do it.” These refugees were supposed to start an economic boom. The actual results show far more German women were raped or assaulted by the refugees than found employment at the thirty largest German companies.
Just days after embattled drugmaker Mylan, which over the past two weeks has come under fire for pricing its EpiPen emergency allergy shots at $600, announced it would cut costs of its infamous anti-allergy treatment, when on Monday it announced it would launch the first generic to its allergy auto-injector EpiPen at a discount of more than 50% to the branded product's list price.
A few short months after Iran publicly demonstrated the arrival of Russian S-300 missile systems, overnight Iran's state media reported that Tehran has deployed the Russian S-300 surface-to-air missile defence system around its Fordow underground uranium enrichment facility. Iranian state TV on Sunday aired footage of deployment of the recently delivered missile system to the nuclear site in the central Iran.
Give her credit, Janet Yellen did indeed manage to leave Jackson Hole with September again “live"... Maybe just buying whatever is the applicable dip has become too beloved a crutch. Another form of corporate welfare. But both Kuroda and Coeure reiterated that their central banks are ready and prepared to do more. Someone should benefit from excessive monetary policies. Why not, for once, U.S. savers.
The dollar index rose to a two-week high on Monday, while bond yields jumped to their highest since June and global stocks sold off after senior Federal Reserve officials indicated a U.S. interest rate increase was on the cards in the near term. The Fed effect - and the stronger dollar - reverberated through markets, pressuring stocks in Europe and emerging markets, pushing oil below $47 and the commodity complex lower.
What happens next may put the past 7 years of simple "financial repression" and central bank failure to shame: in a lunch address by Princeton University economist Christopher Sims, "policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future."
We are in the midst of a huge propaganda blitz by the Pentagon and its affiliated military-industrial complex. We’ve seen the results before and hopefully they will not reoccur with such worldwide viciousness again. Is it possible that this time the Pentagon’s lurid lies will fail to awake public terror and instead incite indignation at military-industrial manipulations. That would be an outcome dearly to be desired in this awakening Internet era.