US equity futures are unchanged, trading near record highs after digesting a spate of earnings results on Thursday. The dollar pared its weekly loss as the yen and pound slid, while gold headed for its longest slump in three months. European equities fell and markets in Asia were mixed at the start of Lunar New Year holidays.
"We argue the current divergence partly reflects concerns around trade protectionism, which would be associated with lower growth and higher inflation over time, and to a lesser extent the view that central banks will be cautious in tightening monetary policy in the face of higher inflation."
With global stock markets basking in the afterglow of Dow crossing 20,000 for the first time, on Thursday they propelled higher in sympathy with the US, as Asia and Europe are trading solidly in the green, as is the dollar which rebounded strongly off a 5 week low.
We have an economic crisis - centered on the persistent elusiveness of real growth, rather than just monetized debt masquerading as 'growth'; and a political crisis - in which even ‘Davos man’, it seems, according to their own World Economic Forum polls, is anxiously losing his faith in 'the system' itself.
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust ...”
We discuss the Global Financial Market System in this video, and how Multiple Central Banks Stimulus Measures have created the biggest Global Financial Asset Bubble in the History of Financial Markets.
Half of the 230 employees at Harvard's $36 billion endowment will be laid off as part of a "radical overhaul", which will shut down the endowment's internal hedge funds, let go traders by the middle of the year, and outsource management of its assets.
President Trump’s initial emphasis on renewing the US manufacturing base is largely symbolic. Even if his administration were to successfully use tax incentives, protectionist measures and immigration policies to re-patriate factories and labor, and even if government were to spend big on fiscal stimulus, it still would not solve the structural leverage problem facing the US economy.