Monetary Base

Key Events In The Coming Week: Jobs, Brexit, PMI, IP And More

The first full week of December is shaping up as rather busy, with such Tier 1 data in the US as the payrolls report, durable goods orders and trade balance. We also get UK PMI data and GDP, retail sales across the Euro Area, as well as central bank meetings including Australia RBA and BoC monetary policy meeting.

How The Deep State Squeezed America's Wealth

"How come so many people have so much money? Real money is not controlled by anyone. It is earned – freely – in win-win exchanges... But fake money takes a different route. It is created by the insiders... and controlled by them. It goes where they want it to go."

Hong Kong's IPO Mania Goes White Hot, Drives Up Interbank Rates

IPO mania in Hong Kong preceded the Great Financial Crisis and the Dot.com busts. It's back and hotter than ever. Yesterday's China Literature Ltd. IPO was 625 times oversubscribed, breaking the previous record of 391 times from two months ago...

The 4 Possible Channels For A Chinese Financial Crisis

An analysis by Victor Shih of Merics lays out 4 plausible scenarios of financial crisis in China: household defaults, shadow banking panic, capital flight, and a sudden stop of international lending. It finds that China’s greatest vulnerability resides in its dwindling foreign exchange reserve and escalating external debt, which can trigger a confluence of maxi-devaluation, external defaults, and sharp asset price depreciation.

Krugman And The "Heroic" Fed

"Far from being the incorruptible general whose troops must clean up the wreckage left by the hurricane of free-market economics, the Fed usually is ground zero (or at least nearby) when it comes to economic crises."

European Stocks On Edge Ahead Of Catalan Independence Call, S&P Futures Rise

S&P futures are again modestly in the green as European shares hold steady ahead of a meeting of the Catalan regional parliament and a possible declaration of independence by Catalan leader Puigdemont, while Asian shares rise a the second day. The dollar declined for the 3rd day, its losses accelerating across the board amid growing concerns that Trump's tax reform is once again dead.

The Week's Key Events: All Eyes On The ECB

With the US markets closed today, market events this week will be dominated by G10 central bank meetings, among which the ECB stands out. In the US, the key economic release this week is ISM non-manufacturing on Wednesday, while several Fed officials are scheduled to speak this week.

Bizarro World: JGB Yields Slide After BOJ Tapers

On Friday morning, the BOJ again lowered the size of its purchases of long-term JGBS to Y410 billion, a level last seen on January 27 of this year (when Kuroda boosted the amount of monetizable debt to halt a surge in yields) from Y440 billion. And, once again, not only did yields not shoot up, but they declined again.

The Fed Gave Wall Street A Bomb, And The Taxpayers Are Paying Ransom

In 2016, this policy paid $16 billion to big banks, a number that will likely rise as the interest rate payments go up with every increase in the federal funds rate...So this is the true policy issue going forward, how do you stop the taxpayer subsidy to Wall Street while avoiding lighting the fuse to Bernanke’s inflation bomb?