Stagflation

Tyler Durden's picture

Brazil Throws In Towel On Budget; Citi Compares Fiscal Outlook To "Bloody Terror Film"





"In the meantime, in our (un)beloved country, there is something scarier than Freddy Krueger: our growth / fiscal outlook."

 
Tyler Durden's picture

Why The Recurring Economic Crises?





...as soon as credit expansion stops, the piper must be paid, and the inevitable readjustments must liquidate the unsound overinvestments of the boom and redirect the economy. And, of course, the longer the boom is kept going, the greater the malinvestments that must be liquidated, and the more harrowing the readjustments that must be made.

 
Tyler Durden's picture

"No Recovery For You!" Brazil Officially Enters Recession, Goldman Calls Numbers "Disquieting"





You know what they say: when it rains it pours, especially when you’re the poster child for an epic emerging market unwind and you’re suffering through the worst inflation-growth outcome in over a decade while trying to combat dual deficits and ward off political and social upheaval.

 
Tyler Durden's picture

Brazil's Economy Is Now A Job Destruction Machine





Brazil's flagging economy, which is mired in stagflation and remains a slave both to China and to what looks like intractable political turmoil, has destroyed nearly 550,000 jobs YTD. As Barclays notes, " [the July] print is compatible with 140,939 job eliminations, pretty close to the historical low of -154,355 in June."

 
Tyler Durden's picture

Return To Junk Status "Only A Matter Of Time" For Latin America's Most Important Economy: Barclays





"We conclude that, under current circumstances, it is only a matter of time until Brazil loses its investment grade status."

 
Tyler Durden's picture

Mal-Asia: Politcal, Currency Crises Converge As Stocks Head For Bear Market





As the great EM unwind continues unabated, we’ve noted that in some hard-hit countries, the terrible trio of falling commodity prices, decelerating Chinese demand, and looming Fed hike has been exacerbated by political turmoil. Now, we turn to Malaysia where an already tenuous situation just got worse as PM Najib Razak is now facing calls for a no-confidence vote amid allegations he embezzled some $700 million from the country's development fund.

 
Tyler Durden's picture

Paul Craig Roberts: "Insouciance Rules The West"





In the Western world insouciance rules governments as well as peoples, and most likely also everywhere else in the world. It remains to be seen whether Russia and China have any clearer grasp of the reality that confronts them.

 
Tyler Durden's picture

This Is What Capitulation Looks Like, EM Positioning Is Most Extreme On Record





Given the carnage unfolding across EM currencies and the myriad headwinds the world's emerging economies face going forward, it should come as no surprise that sentiment has turned decisively negative. Is it time to be a contrarian? BofAML thinks so.

 
Tyler Durden's picture

Currency Carnage: Gross Warns On "Fakers And Breakers", Morgan Stanley Tells Asia To Watch Its REER





What does China's "surprise" move to devalue the yuan mean for "broken" EM currencies? Nothing good, Morgan Stanley says. In short, the path ahead is riddled with exported deflation and decreased trade competitiveness against a backdrop of declining global growth and trade.

 
Tyler Durden's picture

Travails Of Empire - Oil, Debt, Gold & The Imperial Dollar





"We are imperial, and we are in decline... People are losing confidence in the Empire."

 
Tyler Durden's picture

Just As Brazil Hits Rock Bottom, Things Are About To Get Even Worse





For anyone who might have missed it, Brazil is in trouble. "Macro imbalances in Brazil are large, the worst in almost a decade. The fiscal deficit at -8.1% of GDP is also at its widest in more than 20 years, with the combined twin deficits now tracking at a disquieting 12.5% of GDP. Brazil stands at a crossroads – both roads involve currency depreciation."

 
GoldCore's picture

History Always Repeats ... Gold Protects From Capital Controls and Devaluations





We would like to believe that a period of peace and prosperity lies ahead of us. Unfortunately, the facts do not support this panglossian assertion. If history  repeats it is more likely that we see hyperinflation and the sharp devaluation of paper and digital currencies in the coming years, given that no experiment with money printing has ever had a positive outcome.

 
Tyler Durden's picture

Emerging Market Mayhem: Gross Warns Of "Debacle" As Currencies, Bonds Collapse





Things are getting downright scary in emerging markets as a "triple unwind" in credit, Chinese leverage, and loose US monetary policy wreaks havoc across the space. Between a prolonged slump in commodity prices and a structural shift towards weaker global trade, the situation could worsen materially going forward.

 
Tyler Durden's picture

Brazil's Economy Slides Into Depression, And Now Olympians Will Be Swimming In Feces





Athletes in next year's Summer Olympics here will be swimming and boating in waters so contaminated with human feces that they risk becoming violently ill and unable to compete in the games. An AP analysis of water quality revealed dangerously high levels of viruses and bacteria from human sewage in Olympic and Paralympic venues — results that alarmed international experts and dismayed competitors training in Rio, some of whom have already fallen ill with fevers, vomiting and diarrhea.

 
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