European Central Bank

Why Australia's Economy Is A House Of Cards

"For over a quarter of a century our economy mostly grew because of dumb luck... As a whole, the Australian economy has grown through a property bubble inflating on top of a mining bubble, built on top of a commodities bubble, driven by a China bubble....Unfortunately for Australia, that “lucky” free ride is just about to end..."

German Q3 GDP Growth Smashes Expectations

While the Eurozone’s structural problems remain unaddressed and the ECB’s ability to wind back its stimulus remains untested, the worst part of Germany's economic strength and the broader Eurozone resurgence, is that a host ECB bureaucrats will be putting themselves forward to take the credit.

Is There Any Way Out Of The ECB's Trap?

"The trap of the so-called stimulus plan is what it has always been...  the ECB itself is hostage to the perverse incentives it created... What we see today in the valuations of sovereign bonds is not normalization of excessive yields, but euphoria generated by a single operator. The ECB. And that always brings negative consequences..."

Deutsche Bank CEO Says AI Will Help Him Cut Tens Of Thousands Of Jobs

While many in the financial services industry are dreading the day that AI technology becomes advanced enough to render broad swaths of the human workforce obsolete, Deutsche Bank’s John Cryan ironically sees the technology as something that might help him save his job.

Bitcoin As Digital Gold

"The most important thing that bitcoin offers is a new form of sound money outside the control of any authority or government in the world. And that is something very, very important for the world economy. Bitcoin is hard money as opposed to easy money... It is a digital equivalent of gold."

Global Stock Meltup Sends Nikkei To 25 Year High

The global risk levitation continues, sending Asian stocks just shy of records, to the highest since November 2007 and Japan's Nikkei topped 22,750 - a level last seen in 1992 - while European shares and US equity futures were mixed, and the dollar rose across the board, gains accelerating through the European session with the EURUSD sumping below 1.16,

Eurozone Inflation Unexpectedly Cools

In the latest headache for Mario Draghi, the Eurozone's closely watched CPI weakened to 1.40% year-on-year in October 2017 versus expectations of 1.50% and a reading of 1.50% the previous month. As a reminder, according to the ECB's September forecast, HICP inflation is expected to rise to 1.5%, leaving little margin for deflation in the next few months, especially if Draghi's tightening overtures are to be taken seriously.

Bitcoin, Blockchain, And Bank Of America

"The growing pile of public debt in the US is why price stability will never be part of the mix... and is why dollar-alternatives like bitcoin, imperfect and even fraudulent as they may be, will continue to capture the attention of those seeking to escape the economic tyranny of fiat paper money..."

Frontrunning: October 27

  • U.S. Economy Expected to Show Momentum, Despite Storms (WSJ)
  • As Trump tax comes to floor, failure could spell stocks selloff (Reuters)
  • Washington’s Biggest Mystery: What’s in the Republican Tax Plan? (BBG)
  • Spain set to impose direct rule in Catalonia as crisis spirals (Reuters)
  • Catalans Send Emissary to Madrid to Plead for a Deal (BBG)