Mexico

Quickly looking at the potential market moving events this week, US payrolls on Friday will be the clear focus. In terms of expectations, our US colleagues are expecting a +225k print which matches the current Bloomberg consensus, while they expect the unemployment rate to drop one-tenth to 5.4%. Elsewhere, Thursday’s UK Election will be closely followed while Greece will once again be front and center.

At least one Texas Republican thinks Governor Greg Abbott's move to call in the Texas Guard to monitor US military drills in the state is outright preposterous. "Let me apologize in advance that your letter pandering to idiots who believe that US Navy Seals and other US military personnel are somehow a threat to be watched has left me livid." It only gets better from there... "

"The War on Cash is the attempt by governments to phase cash out of their economies. Governments hate cash because they hate the financial privacy cash makes possible. And they prefer that you keep your money in a bank to help prop up an unsound fractional reserve banking system." As Ron Paul warned, “The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.”

Hookers for Brazilians, and MiGs for Russians... what cost is your country obsessed with?

The story of Jade Helm — the name for the upcoming military exercises in Texas, California, Arizona, Utah, New Mexico, Colorado, and Nevada — has taken a decisive turn for the absurd as Texas Governor Greg Abbott has now called on the Texas Guard to (literally) monitor military drills conducted by US special forces after local residents suggested the exercises could be the precursor to a federal invasion of Texas. Only in America.

Recently, France decided to crack down on those people who make cash payments and withdrawals and who hold small bank accounts. The reason given was, not surprisingly, to “fight terrorism,” the handy catchall justification for any new restriction governments wish to impose on their citizens. French Finance Minister Michel Sapin stated at the time, “[T]errorism feeds on fraud, money laundering, and petty trafficking." What we are witnessing is the creation of totalitarian control of your finances. The implication that you may have some sort of terrorist involvement is a smokescreen.

The day after the crash (and thereafter), what will be the currency that is used to buy a bag of groceries, a tank of petrol, a meal at a restaurant? Certainly, the need will be immediate and will be on a national level in each impacted country, affecting everyone. Many believe the US will be prepared ahead of time with a new, electronic currency - US citizens will then become the most economically controlled people in the world, overnight. A further possibility is taking place in Mexico today. Mexico is remonetising silver. As the Great Unravelling proceeds, we would be wise to monitor what happens with the Libertad in Mexico and watch for a similar return to precious metals in other jurisdictions.

We live in a world with limits, yet our economy needs growth. How can we expect this scenario to play out?

USA USA USA #15? Despite aerial bombardment, growing tensions with every neighbor, and the almost ubiquitous daily car-bombs, Israelis are "happier" than Americans according to Bloomberg's world happiness index. Happiness, it appears, is most abundant a long way from the equator with Switzerland, Iceland, Denmark, Norway, and Canada all topping the list; whereas the unhappiest nations are all in Saharan or sub-Saharan Africa (apart from war-torn Syria and Afghanistan).

They’ve become sitting ducks, in a market that is "in extreme overvaluation."

Some economic facts that you did not know...

What’s so shocking about the story below is not that a 20-year veteran of the Houston police force, who was previously named one of the “Officers of the Year” by the Officers Union, was trafficking weapons for drug cartels. What’s shocking is that he was actually indicted and faces life in prison. He should’ve worked for a federal agency like the DEA or TSA, in which case he might not have even been fired.

“A government which will turn its tanks upon its people, for any reason, is a government with a taste of blood and a thirst for power and must either be smartly rebuked, or blindly obeyed in deadly fear.” - John Salter

"Take the New York Times -- the greatest newspaper in the world. Take one example, at the first article that appeared today, that the tentative [nuclear] agreement with Iran was reached. It’s a thinkpiece, by Peter Baker, one of their main analysts. He discusses in it the main reasons to distrust Iran, the crimes of Iran. It’s very interesting to look at. The most interesting one is the charge that Iran is destabilizing the Middle East because it’s supporting militias which have killed American soldiers in Iraq. That’s kind of as if, in 1943, the Nazi press had criticized England because it was destabilizing Europe for supporting partisans who were killing German soldiers."

While this week sees the peak of Q1 earnings season, it will be a generally quiet week on the macro economic front for both EM and DM, with the emphasis on the latest seasonally adjusted manufacturing sentiment surveys, US durables and Japan trade.