A couple of trillion dollars of freshly created debt and a collapsing currency (which did nothing for the trade balance which was described as "not very solid" by authorities) along with a dead stock market, a bond market at record low yields (unconvinced at any recovery) and a housing bubble and China's National Statistics Bureau 'nails it' with 'meets' across the board (albeit Industrial production disappointed).
".. that was one of the biggest mistakes the central banks made during the financial crisis: They stopped the debt from blowing up. So we never had a cleansing... we are still solving the too-much-debt-problem with too much debt... the Fed is still saying We will make money for free and you just need to borrow more money, and that's its solution to having too much debt. It's insane when you look at it. "
While The 'ever-fearful' Fed continues to hold rates at emergency low levels, President Obama proclaimed once again that "we've recovered quicker" as he took yet another economic victory lap. "I'm proud of our economic track record" he exclaimed, despite Harvard having blown that myth out of the water, before he turned his attention to Trump, talling him to "stop whining."
The scandal-plagued Deutsche Bank agreed on Friday afternoon to pay $38 million to settle US litigation over allegations it illegally conspired with other banks to manipulated and fix silver prices at the expense of investors. A lawyer for the investors said the deal provides "substantial monetary compensation plus cooperation in the continued prosecution of this case against the non-settling defendants."
World stocks started the week in the red Monday as the dollar touched a 7-month high and U.S. and European government bond yields climbed to their highest since June following the Friday speeches by Eric Rosengren and Janet Yellen which hinted the Fed's next step could be to pursue a steepening of the TSY yield curve the same as the BOJ.
"If one were concerned about the historically low 10-year Treasury and commercial real estate capitalization rates, perhaps because of potential financial stability concerns, the balance sheet composition could be adjusted to steepen the yield curve." - Boston Fed President Eric Rosengren
The Bank of England’s inept monetary policies under Mark Carney’s governorship seem certain to expose the fragility of fiat sterling to wider public attention and skepticism. If the consequences weren’t so serious, we might thank him for unwittingly toppling the status quo. But the inevitable crisis, many times worse than that faced in 1975, cannot be embraced even by the most extreme financial masochist. This is why people in Britain and America will increasingly find solace in gold.
"...we have the precedent from a much earlier time (the 1930s) when the defection of just one member from a currency union caused the system to unwind rapidly. And we can clearly sense the seeds of another popular political revolt in other member countries; a flurry of upcoming elections and referendums provides an immediate catalyst...We believe we are approaching a dramatic fulcrum point in public opinion in Europe."