Two Options: Reform The Economic System Now Or The Populists Will

This is what it comes down to: There was a credit explosion to the benefit of banks and the wealthy once Nixon closed the gold window. At that point, governments could print at will, and they did. Central bank policy cannot fix structural problems, only the free market can. And that includes a truly free market in money as well.

Key Events In The Coming Pre-Holiday Week

The key economic releases this week are durable goods and GDP on Thursday. Chair Yellen’s speech on the labor market on Monday afternoon is also likely to garner considerable attention.

JPM: "The Most Significant Recent Development Is The Changing Narrative Around Trump"

"The most significant development over the last several days is the changing narrative around Trump. Whereas initially markets were enthused by the GOP sweep and the ostensibly pro-business implications of the Trump/Ryan fiscal/regulatory agenda, investors are now beginning to filter that platform through the lens of political and mathematical reality. "

Damaging The Deep State: Trump, Russia, And China

It has become clear Trump's attitude towards Russia and China is very different from that of his predecessors. Amazingly, he is already wresting power from the deep state, causing it great resentment, which under Obama, Clinton and the Bushes, ran geopolitical policy. From January, barring accidents the world will not be the same, the establishment up-ended.

US Manufacturing PMI Hits 21-Month High (Despite Plunge In Industrial Production)

After mixed PMIs from Europe overnight (German/Eurozone Services down, Manufacturing up), US Manufacturing PMI (soft survey) rose very modestly in its preliminary December print to 21-month highs, which is entirely decoupled from industrial production hard data declining. However, the 54.2 level disappointed relative to 54.5 expectations, with export sales close to stagnation, which contrasted with the modest growth seen on average in the second half of 2016.

JPM: "Political Expectations Are The Single Biggest Risk Facing The Tape"

"The market’s focus will turn back to the precise scope, timing, and structure of the Trump/Ryan fiscal/regulatory agenda – this more than anything will determine whether the post-11/8 move can hold or whether the SPX will surrender its gain: it remains the case that elevated political expectations are the single biggest risk facing the tape."

Greek Bond Yields Surge After Debt Relief Talks Collapse

Greek bond yields are surging in the latest twist of the nearly seven year old Greek crisis, when on Wednesday Eurozone fin mins and the ESM, suspended their promise to grant short-term debt relief measures to the Greek government, as a result of pledges made by the Greek PM Tsipras to ease austerity on the country’s pensioners earlier in the week.

GoldCore's picture

The people who are likely to win the next election want to take Italy out of the euro and replace the euro with their own currency, the lira. Unfortunately for the EU, if Greece was a tricky issue to deal with, Italy is — in economic terms — a massive Greece …

Global Bond Rout Returns With A Vengeance, Sending 10Y Yields To Highest In Over Two Years

The global bond rout returned with a bang, sending 10Y US Treasury yields as much as six basis points higher to 2.53%, the highest level in over two years. The selloff accelerated following Saturday's agreement by NOPEC nations to slash production, leading to rising inflation pressures. At last check, the 10Y was trading at 2.505%, up from 2.462% at Friday and on track for its highest close since September 2014.