"...my husband, who I will put in charge of revitalizing the economy ’cause he knows what he’s doing."
Actually, he doesn’t. In truth, it was the doing of Alan Greenspan, and not in a good way.
If we are going to simply print money and hand it out with no expectation or means to pay it back, why would we not print enough to make everyone wealthy? Socialism is not about equality, quite the opposite. If it were, The ECB would be discussing limitless debit cards paid for by the Central Banks. Socialism is a mechanism to subsidize profits and cement control of the masses.
Since the beginning of the year, the greenback has shown it's not almighty after all; and gold - the barbarous relic as some have called it - may be en vogue again? Where are we going from here and what are the implications for investors?
It is obvious that the unintended consequences of ZIRP have destroyed financial market structure which ultimately flows through to the broader economy.
“I am optimistic that the depository will be up and running at the end of this year or the beginning of next year,” Capriglione said, "at the depository, Texans will be able to open accounts similar to checking or savings accounts at traditional banks - and monitor them online."
We are not in a recession. We are in a depression, and have been since the turn of the century.
You have to love it when one of Donald Trump’s wild pitches sends the beltway hypocrites into high dudgeon. But his rumination about negotiating a discount on the Federal debt was priceless. No sooner did the 'unschooled' Trump mention out loud what is already the official policy of the US government than a beltway chorus of fiscal house wreckers commenced screaming like banshees about the sanctity of Uncle Sam’s credit promises.
It has been more of the same overnight, as global stocks piggybacked on the strong US close and rose despite the lack of good (or bad) macro news, propelled higher by the two usual suspects: a higher USDJPY and a even higher oil, if mostly early on in the trading session.
While it must be painful for those who have such disdain for the pet rock, the fact is that central banks are losing credibility with the market, and gold is one way of expressing that. As Elliott Management's Paul Singer said last month regarding investor confidence in the central planners: "If judgement continues to weaken, the effect on gold could be very powerful." Perhaps the markets are starting to wake up to the fact that the all-knowing central planners literally have no idea what they're doing, and if so, we'll let investors borrow our tinfoil hat.
Oil producers and merchants increased their short position in WTI by 3.8% for the week ended May 10 to the highest since September 2011. As BLoomberg writes, "oil producers are taking advantage of the rebound in crude markets to lock in protection against another slump." Energy companies from EOG Resources Corp. to Chesapeake Energy Corp. used financial instruments such as futures, swaps and collars to guard against another fall in prices. West Texas Intermediate oil, the benchmark U.S. crude, has gained more than 75 percent since hitting a 12-year low in mid-February.
After snapping up trillions of dollars of their own stock in a five-year shopping binge that dwarfed every other buyer, U.S. companies from Apple Inc. to IBM Corp. just put on the brakes. Announced repurchases dropped 38 percent to $244 billion in the last four months, the biggest decline since 2009, data compiled by Birinyi Associates and Bloomberg show. “If the only meaningful source of demand in the market is companies buying their own shares back, then what happens if that goes away?” asked Brad McMillan, CIO of Commonwealth “We should be concerned.”
One month ago, when the NYT reported that Saudi Arabia would liquidate as much as $750 billion in Trasurys should the US pursue legislation that could hold it liable for the September 11 bombings, many asked: does Saudi Arabia own that many Treasurys? We now have the answer courtesy of a Bloomberg FOIA submission to the US treasury, and our estimate of "far less" Saudi holdings was indeed accurate. As Bloomberg reports, "the stockpile of the world’s biggest oil exporter stood at $116.8 billion as of March."
The self-described "magic people" who "give to the markets" are facing a mutiny this morning as Raghuram Rajan, the head of the Indian central bank, admits central banks and governments of rich countries are running out of ammunition for stimulating their economies... but they can never admit as much. Crushing the dreams of "extreme monetary policy"-setters, Rajan goes on to discuss the sanity of 'helicopter money' warning that people will not be 'stimulated' to spend but will question: "What kind of world are we in when the central bank prints money and throws it out of the window?"
RANsquawk WEEK AHEAD VIDEO - 16th May 2016: Highlights this week include FOMC, ECB and RBA minutes, as well as tier one data from across US, UK and AsiaSubmitted by RANSquawk Video on 05/16/2016 08:51 -0400
- From a data perspective, focus will centre around the latest US CPI report, while Asian participants will digest Japanese GDP figures.
- Minutes from the Fed, RBA and ECB are scheduled for release, elsewhere earnings season in the US draws to a close with Walmart providing their earnings update.
There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become confused by policy failures, and privately, occasionally even downright pessimistic, at a loss to see a statist solution. It is hardly exaggerating to say there is a growing feeling of impending doom. In short, growing evidence of price inflation and stagnant production can be expected to materially increase the risk of a global banking and currency meltdown. The best escape-route is ownership of anything other than purely financial assets and fiat currency deposits. No wonder the price of gold, which is the soundest of moneys, appears to have entered a new bull market.