March 15 is not only the day when the FOMC is now widely expected to hike rates by another 25 bps, and when the US debt ceiling suspension expires, but just as importantly, is the date of the 2017 Dutch General Election. Here is a full preview of what to expect.
While the stock market (and VIX) signal utter calm, signs of stress are very clear in America's money markets. With Treasury's cash balance plunging to just $108bn this week as the debt ceiling deadline looms, newly ensconced Treasury Secretary Steven Mnuchin will be forced to order “emergency measures” to effectively buy more time for the government to pay its creditors and cover revenue shortfalls to keep the government operating.
"Trump is in fiscal la-la-land... I've thrown in the towel because he’s not paying attention and he’s not learning anything...by the time we get to June or July, we are going to see a debt ceiling crisis like never before."
"These things move in century-long cycles, and it is time to assess where we’re at, at what point in history we have reached. Central banking has enslaved us all, and doomed us to the next crisis, and there may be nothing we can do to stop it…"
"I think what people are missing is this date, March 15th 2017. That’s the day that this debt ceiling holiday expires. We are burning cash at a $75 billion a month rate. By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises. Everything will grind to a halt."
Construction, engineering and materials stocks are underperforming the market on sudden concerns that in addition to tax reform and Obamacare repeal, another core aspect of Trump's fiscal stimulus, Infrastructure spending, may be delayed by at least two years.