European Union

Luxembourg Wants To Kick Hungary Out Of Europe For Its "Inhuman" Treatment Of Refugees

“Anyone who, like Hungary, builds fences against refugees from war or who violates press freedom and judicial independence should be excluded temporarily, or if necessary for ever, from the EU,” Luxembourg FM Asselborn said. Hungarian Foreign Minister Peter Szijjarto called Asselborn “an intellectual lightweight” who “lives a sermonizing, pompous and frustrated life … just a few kilometers from Brussels.”

IMF's Lagarde Slams Globalization, Warns Of A "Groundswell Of Discontent"

"... growing inequality in wealth, income, and opportunity in many countries has added to a groundswell of discontent, especially in the industrialized world—a growing sense among some citizens that they “lack control,” that the system is somehow against them. Financial institutions are being seen as unaccountable to society.... Corruption remains endemic."

Frontrunning: September 13

  • IEA Changes View on Oil Glut, Sees Surplus Enduring in 2017 (BBG)
  • Futures dip with oil as investors assess rate hike chances (Reuters)
  • Hilsenrath - Divided Federal Reserve Is Inclined to Stand Pat (WSJ)
  • 'I didn't think it was a big deal,' Clinton says of pneumonia bout (Reuters)
  • Clinton's Lead Narrows Among Independents, Voters Nationally (NBC)
  • Libor’s Reaching Point of Pain for Companies With Big Debt Loads (BBG)

"The Financial Crisis Has Morphed Into A Growth Crisis" - Rogoff Warns "Cash Is Not Forever, It's A Curse"

"Big bills are a curse... understand this: Cash is not forever... in fifty years there will be no cash... it’s one very important step towards enabling central banks to have much more effective tools in fighting a financial crisis and in particular to use negative interest rates in an effective way... people who are older need to think about having a larger share of stocks than the traditional wisdom..."

George Soros Warns Europe: Accept Refugees Or Face Extinction

The refugee crisis and the Brexit calamity that it spawned have reinforced xenophobic, nationalist movements that will seek to win a series of upcoming votes. Rather than uniting to resist this threat, EU member states have become increasingly unwilling to cooperate with one another. They pursue self-serving, beggar-thy-neighbor migration policies – such as building border fences – that further fragment the Union, seriously damage member states, and subvert global human-rights standards.

"Global Market Rout" - Bond Selloff Snowballs Into Stock Liquidations On "Stimulus Pullback" Fears

With traders in the US arriving at their desks, the global selling appears to be accelerating and as Bloomberg notes, "a selloff in fixed income is starting to snowball into a global market rout" driven by what Reuters dubbed "growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programs may be waning."

Negative Rates & The War On Cash, Part 4: "Financial Totalitarianism"

Governments and central banks would very much like to frighten people away from cash, but that only underlines its value under the current circumstances. Cash is king in a deflation. The powers-that-be know that, and would like the available cash to end up concentrated in their own hands rather than spread out to act as seed capital for a bottom-up recovery. Holding on to cash under one’s own control is still going to be a very important option for maintaining freedom of action in an uncertain future.

Why One Hedge Fund Is Once Again Preparing For The End Of The Euro

"The time for treating the EUR-peg as a taboo may soon be past us, and an open discussion become the dominant narrative, in pursuit of a long-term durable solution to economic stagnation, in an attempt to save the European Union, so to orderly drive the process as opposed to end up being overwhelmed by the trending course of events."

The Disturbing Signs Of Global Conflict Continue To Gather Pace

The signs are ominous, the rhetoric constant. Whichever way you look at it, the world is slowly descending into an ever greater spiral of conflict. We all know that the current wars raging in the Middle East have the potential to go catastrophically wrong and pull the super-powers into something much bigger. You also know things are not good when the so-called ‘conspiracy theories’ from alternative media outlets eventually go mainstream...

Frontrunning: September 9

  • German jitters weigh on stocks, ECB doubts lift yields (Reuters)
  • Chinese Billionaire Linked to Giant Aluminum Stockpile in Mexican Desert (WSJ)
  • Monte dei Paschi CEO to be replaced as cash call looms (Reuters)
  • German exports plummet in July, hit trade surplus (MW)
  • North Korea conducts fifth and largest nuclear test (Reuters)
  • Hedge Fund and Cybersecurity Firm Team Up to Short-Sell Device Maker (NYT)

A Political Hurricane Is About To Sweep Across Europe

If you’ve been paying attention, you could see this coming a mile away. Brexit is just the start of a much, much bigger trend..."The backlash we are witnessing represents a worldwide revolt against globalism and the disconnected and hopelessly corrupt status quo."