Global Economy

Triffin's Paradox Revisited: Crunch-Time For The U.S. Dollar & The Global Economy

While all eyes on fixated on global stock markets as the measure of "prosperity" and "growth" (or is it hubris?), the larger force at work beneath the dovish cooing of central bankers is foreign exchange. The reality is that we're one panic away from foreign-exchange markets ripping free of central bank manipulation.

"Risk Off" - Global Stocks Slide As Yen Surges To 17 Month High; Bund Yields Plunge

The market's slumberous levitation of the past month, in which yesterday's -0.3% drop was the second largest in 4 weeks and in which the market had gone for 15 consecutive days without a 1% S&P 500 move (in March 2015 the sasme streak ended at day 16) may be about to end, after an overnight session, the polar opposite of yesterday's smooth sailing, which has seen a sudden return of global risk off mood.

Yelling "Stay" In A Burning Theater - 'Simple' Janet Does It Again

The longer the Fed perpetuates today’s massive 24X bubble with soporific open mouth interventions like Yellen’s pathetic speech last week, the more violent and traumatic the risk asset implosion will ultimately be. You would think our monetary politburo might at least notice that after trading in no man’s land between 1870 and 2130 on the S&P 500 for the past 700 days, the casino is positioned exactly where it stood in 2007 and 2000. Simple Janet has attained a new milestone as a public menace with her speech to the Economic Club of New York. It amounted to yelling “stay” in a burning theater!

Why Manufacturing Matters

It’s not the more fickle and systemic nature of the FIRE economy that makes manufacturing particularly important. It goes well beyond that...

2016: The End Of The Global Debt Super Cycle

The credit markets are signaling that the debt fueled expansion that began in 2010 is turning to bust. This is the most precarious moment in financial market history because as the world slides into recession global central banks have no ability to soften the oncoming recession with debt creation. The world economy is on the precipice of another Great Depression.

China Unveils 'Trumpian' Tariffs On All Foreign Goods

Chinese President Xi appears to have moved on from currency wars to protectionism as WSJ reports China is tightening its grip on cross-border e-commerce, imposing a new tax system on all overseas purchases. While Trumpian tariffs are dismissed as crazy talk by America's establishment, it seems China took first-mover advantage to boost "Made-in-China" products at the expense of the rest of the world.

Goldman Admits It Was Wrong About The "Yellen Call": Offers Test To Check If It Is Finally Right

"In our “Top 10 market themes for 2016”, we argued that the ‘Bernanke put’ might gradually be replaced by the ‘Yellen call’. Recall, the ‘Bernanke put’ was the idea that meaningful declines in market sentiment would be met with aggressive monetary action, thus providing a buffer to downside risk. Our notion of the ‘Yellen call’ was the converse of this – that with labor markets approaching full employment and core PCE inflation rising towards target, meaningful rallies in market sentiment would likely be met with a more robust withdrawal of policy accommodation.... It hasn’t happened."

Gold Soars 16% In Q1 - Best Start To A Year In 42 Years

Gold's 16.1% surge in Q1 2016 ias the best start to a year since 1974. Overall, this is the best quarter since Q3 1986 and is the best performing major commodity of the year. Gold rallied this year as it cemented its status as a store of value amid financial market turbulence and concern about the global economy, which led to speculation that the Federal Reserve would pause on tightening monetary policy in the U.S. Having seen BlackRock's gold ETF halted due to inability to meet physical demand, it appears pet rocks and barbarous relics are 'worth' something after all.

2007 All Over Again: "We Are Outsourcing Our Monetary Policy"

The strange, ominous concept of "outsourced monetary policy" has returned — but this time we’ve put our monetary fate in even less-stable hands. Wjat Janet doesn't seem to comprehend is that putting oneself at the mercy of financial market sentiment seems a bit risky, given that Mr. Market is a well-known manic depressive.

smartknowledgeu's picture

Lars Schall explores the time-honored tradition of following the money in an attempt to discover answers to yet unresolved questions regarding the terrorist attacks of 9/11 in New York City. Mr. Schall is an independent investigative journalist that has produced many hard-hitting pieces regarding Central Bankers' manipulation of gold prices, and the failure of the US Central Bank (The Federal Reserve) to return all of Germany's gold reserves in the past.

The Federal Reserve Of China?

"There is a consensus that China’s economy will slow in the coming years as it transitions away from investment toward consumption and from exports toward domestic sources of growth. There is much uncertainty, however, about how smoothly this transition will proceed and about the policy framework in place to manage any financial disruptions that might accompany it. hese uncertainties were heightened by market confusion earlier this year over China’s exchange rate policy."