President Obama’s High Command at the Fed has had the luck which Napoleon looked for in his generals. The exercise of two Yellen puts seems to have delayed the late dangerous stage of asset price inflation to beyond 2016 Election Day.
It is becoming increasingly obvious that foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US paper, is liquidating their holdings at a very disturbing rate.
In what may be the latest indication that Merkel's immigration policy blowback is being heard by the government, Germany's Handelsblatt reports that Merkel's government plans to prohibit foreign E.U. citizens from receiving welfare benefits for five years if they haven’t worked in Germany before.
"when even the limpest “trial balloon” discussion of the ECB’s hypothetical, WAY down-the-road discussion of how to end their QE program (we could be talking 2020 here people) creates yet another “Mini-Taper Tantrum,” we have to be intellectually honest with ourselves (as do CBers) and acknowledge the incredible degree to which the current monpol framework has distorted prices / valuations / market structure."
In the long run reality is reality, not what the powers would like it to be or what they try to con the masses into believing it is. Don’t give up hope! The long run is short enough that most of us won’t be dead when it arrives.
The President of "the most transparent administration ever" is shocked at how close the election has become. Having seemed to be try to shame the black community into voting for Hillary (calling it a "personal insult"), CNN reports that President Obama has found another scapegoat - blaming "misinformation" from right-wing websites for the "nail-biter."
What until a month ago was "merely" a record $335 billion in central bank sales inthe LTM period ending June 30, one month later, this number has risen to a new all time high $343.4 billion, or well over a third of a trillion in Treasuries sold in the past 12 months.
So it’s not a surprise to see many claiming their content is being censored by Google’s YouTube. After all, with the amount of power the company holds in Washington, it’s as if Google - or Alphabet - is an actual wing of the government.
With the ECB running dangerously low on bonds to monetize even as its QE program has failed to spur inflation, Mario Draghi may have no choice but to unveil drastic changes to the central bank's QE programm tomorrow. Here are the options available to the central banker, and some ideas of how markets may react.
Today was another historic day in the monetary twilight zone that is Europe, when two large European, non-financial companies were the first in history to be paid by investors to borrow, courtesy of the ECB's corporate debt monetization program, which has unleashed an unprecedented scramble for frontrunning the central bank's purchases of corporate debt and a historic collapse in bond spreads.
"I don’t see a reason [for the ECB not to buy stocks]" said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics. "It isn’t obvious to me why a central bank wouldn’t always want a diversified portfolio, including equities."