Monetary Policy

Tyler Durden's picture

The Truth About GDP

If rising prices are good for the economy, how come everyone was so unhappy in Germany's Weimar Republic in 1923, or in Zimbabwe fifteen years ago? Surely, as inflation accelerates the happiness level should rise...

Tyler Durden's picture

Global Stocks Start Off December With A Bang, US Equity Futures Rebound; Yuan Drops

There was something for everyone in last night's much anticipated Chinese PMI data, with the official number sliding to the lowest in over 3 years, suggesting the PBOC will need to do more stimulus and is thus bullish, while the unoffocial Caixin print rising to the highest since June, suggesting whatever the PBOC is doing is working, and is also bullish. Not unexpectedly, global stocks decided to take the bullish way out, and have risen across the globe led by Asia, where stocks rose as much as 1.8%, Europe also green and US equity futures up 10 points as of this writing.

Gold Standard Institute's picture

Will a GDP Futures Market Be Liquid?

Scott Sumner said he had a “modest” proposal: there should be a highly liquid futures market in Nominal Gross Domestic Product. Let's look at that.

Tyler Durden's picture

The IMF Confirms Yuan Inclusion In SDR Basket At 10.92% Weight, Above JPY And GBP

The IMF’s Executive Board decision today means that the yuan will be included in the SDR basket from Oct. 1, 2016, effectively anointing the yuan as a major reserve currency and represents recognition that the yuan’s status is rising along with China’s place in global finance. The weight in the basket will be 10.92%, larger than JPY and GBP. However, as politically-motivated as this decision may have been, now comes the hard part for China.

Tyler Durden's picture

Larry Lindsey Crushes Steve Liesman's Dreams, "The Foolish Fed's Bubble Policy Always Ends Badly"

"The idea of lettting an asset bubble run is literally one of the most foolish things a central bank can do... they always end badly;"

Tyler Durden's picture

An Angry Trader Rages: "There Is Nothing Normal About It"

"All global events have been reduced to monetary policy events, i.e., buy the dip opportunities. France’s CAC-40 sold off the two trading days before the recent horror. It was a solid buy the following Monday. By always protecting risk-takers, the authorities are complicit in trivializing issues that need an all hands on-deck response. Bad news is good news has metastasized into an even baser concept"

Tyler Durden's picture

Futures Rebound On Latest Chinese Intervention, Renewed Hopes For "Moar From Mario"

Without a rerun of last Friday's Chinese stock market rout, European traders could focus on what "really matters", namely how much of the ECB's upcoming 20 bps rate cut and €20 billion QE expansion (with Commerzbank saying Draghi may even hint at Europe's QE3) is priced in, and whether the ECB's actions are just modestly priced in, or more than fully, and just how big the "sell the news" event will be.The result: the Euro falls to a new 7 month low, the dollar spot index hits a new all time high, and European stocks and US futures stage another remarkable overnight comeback on the usual low volume levitation and central bank intervention.

Tyler Durden's picture

December 16th: A Date Which Will Live On In Monetary Infamy

So now, here we are in the lull just as we were before that Sept. meeting, And what is happening this time? Well, don’t look now, but there indeed looks to be trouble brewing on the global stage (or should I say “international developments”) that could turn out to be just as big of a headache to the Fed’s reasoning’s on whether or not to “just do it.” Just one of those issues is – once again: China.

Tyler Durden's picture

As Market Awaits "Santa" Draghi, The ECB Is "Chasing Its Own Tail"

“If the ECB merely does on 3 December what is effectively priced by the market, we could collectively wake up on 4 December feeling a bit deflated, like a child discovering on Christmas day that his parents ‘only’ gave him what he/she had asked for, without the ‘little extra’ that would have kept him/her smiling all day long."

Tyler Durden's picture

Goldman's Meteoronomists Have A Dire Forecast: "Winter Is Coming"

With the winter of 2015 so far shaping up to be what some have dubbed "abnormally hot", we thought that at least this year the weatherconomists would keep their mouth shut: after all, if you blame cold weather for an underperforming economy, you better say nothing at all if the weather is warmer than usual as it has been in October and November. Alas, it was not meant to be, and so, without further ado, here are everyone favorite economweathermen from Goldman Sachs, warning everyone that, drumroll, yes, Winter Is Coming.

Tyler Durden's picture

Salting The Economy To Death

The fundamental fact is that the current financial and economic paradigm, characterized by heavy handed Federal Reserve intervention into credit markets, is dying.  Debt based stimulus is both sustaining and killing the economy at the same time.

Reggie Middleton's picture

The FDIC Reiterates and Corroborates My "F@ck the Fundamentals" Message fron the Fed

Risk goes up, yeilds go down... What's that look for? Don't you know how bond pricing works in the new millenium?

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