Money Supply

Reality Vs. The "Recovery" Narrative

Of course, these PCE (personal consumption expenditure) and Official Unemployment numbers tell us almost nothing about the real economy. But then again, the Fed can’t admit this either can they?

Global Stocks, Futures Slide On US Protectionism Worries Following Trump Travel Chaos

European, Asian stocks and S&P futures all drop after traders were left with a sour taste from the potential fallout of Donald Trump’s order halting some immigration and ahead of central bank decisions from the U.S. and Japan.  Markets in Hong Kong, China, Malaysia, Korea, Singapore, Taiwan and Vietnam are all shut due to the Lunar New Year public holiday.

Key Events In The Coming Week: All Eyes On Trump's First Actions

The key economic releases this week are durable goods and GDP on Friday. On the political front, the focus will be is on the first actions of the Trump administration including moves on TPP and NAFTA. There are no scheduled Fed speeches this week.

Futures, Dollar Slide; European Stocks At 3-Week Lows As "Trump Reality Sets In"

While US stocks closed near session, and all time highs on Friday, the first green close on inauguration day in over 50 years, Monday has seen a modest case of buyer's remorse, with European stocks sliding, Asian shares mixed and U.S. futures lower as the dollar weakened for the 3rd consecutive day to a six-week low, dropping as much as 1% against the Yen, as anxious investors awaited more details of Donald Trump’s policies.

US Financial Markets - Alarm Bells Are Ringing

If any unexpected fundamental news should emerge that throw doubt on the beliefs so widely held by market participants of late, a sizable surge in market volatility is likely to ensue.

Venezuela's March Toward Default

It is only a matter of time until Venezuela can no longer finance its imports and social and political chaos of unprecedented proportions will afflict the country. The fallout will also affect Venezuela’s neighboring countries.

Are Chinese Philosopher Kings Losing Their Yuan FX Religion?

It took a while, but the world are slowly coming to grips with the simple fact the Chinese miracle is built on a pile of debt with only an unconstrained printing press to support it. The danger is obviously that the political establishment in China will be in dire need to distract the hordes of angry masses that are about to lose their life savings.

Yuan Dumps, Bitcoin Jumps As China Researchers Suggest "One-Off Devaluation" & Capital Controls

As we have detailed numerous times recently, the recent move in Bitcoin has been strongly suggesting increasing fears of capital controls and/or expectations of a looming (and quite notable) devaluation of the Yuan against the US Dollar. Tonight saw China's largest nationalist tabloid suggesting that China should consider one-off yuan devaluation to keep the currency stable at equilibrium level. Offshore Yuan is tumbling - to new record lows.

Kunstler: 2017 Is When The Wheels Finally Come Off

The American people have been punked by their own government and their central bank, the Federal Reserve, for years and the jig is now up. In 2017 both will lose their authority and legitimacy, a very grave matter for the survival of this republic.

Central Bankers Are Losing Faith In Their Own Alchemy

"The idea that paper money could replace intrinsically valuable gold and precious metals... was both revolutionary and immensely seductive. It was in fact financial alchemy - the creation of extraordinary financial powers that defy reality and common sense. Pursuit of this monetary elixir has brought a series of economic disasters - from hyperinflation to banking collapses."