Two days ago we introduced you to "the rich kids of Vancouver." We now introduce you to someone who may be one of these rich kids' dad. Or rather was, because Gang Yuan, a 42-year-old mining tycoon is no longer alive. His corpse was found chopped into 100 pieces in his Vancouver home.
It's well known that the US government is broke, and if it used accrual accounting instead of cash accounting it would be staggeringly worse, as all of its future liabilities would be shown. Knowing this, government officials are working tirelessly (and even on some weekends, much to the dismay of Jack Lew) to find ways to reduce spending. Thanks to all of those long nights scrubbing the budget line by line, a way to save costs has finally been found...
China Econ Data out tonight at 10:00 p.m. CST including a look at first quarter GDP.
Recall all those tankers we have profiled before on anchor next to the Iran shore? They have finally started to move.
Best. Admission. Ever: "Argentina Is No Longer Lying About Its Statistics... It Used To Lie Obscenely"Submitted by Tyler Durden on 04/14/2016 11:43 -0400
ARGENTINA IS NO LONGER LYING ABOUT ITS STATISTICS: PRAT-GAY
ARGENTINE STATS AGENCY WAS `USED TO LIE OBSCENELY': PRAT-GAY
In another quiet overnight session, the biggest - and unexpected - macro news was the surprise monetary easing by Singapore which as previously reported moved to a 2008 crisis policy response when it adopted a "zero currency appreciation" stance as a result of its trade-based economy grinding to a halt. As Richard Breslow accurately put it, "If you need yet another stark example of the fantasy storytelling we amuse ourselves with, juxtapose today’s Monetary Authority of Singapore policy statement with the storyline that the Asian stock market rally intensified on renewed optimism over the global economy. Singapore is a proxy for trade and economic growth ground to a halt last quarter." The Singapore announcement led to a sharp round of regional currency weakness just as the dollar appears to have bottomed and is rapidly rising.
Would the world survive President Hillary?
After weeks of "stability," and following two emergency Fed meetings in 3 days (and an unexpected ease by MAS), The PBOC decided today was the right time to drastically slash the Yuan fix by 300 pips. This is the largest devaluation of the Chinese currency since January 7th (and second largest since August's world-market-turmoiling devaluation). Offshore Yuan had been tumbling all day (shrugging off the supposedly better trade data as FX traders saw through the colossal spike in imports from HK as indicative of capital outflows), and is falling further following PBOC's cut. Another abrupt message to The Fed... or is something happening behind the scenes (cough DB liquidity cough) that everyone is scrambling to deal with?
Markets have stopped focusing on what central banks are doing and are "positioning for what they believe central banks may or may not do," according to BofA's Athanasios Vamvakidis as he tells FX traders to "prepare to fight the central banks," as the market reaction to central bank policies this year reflects transition to a new regime, in which investors start speculating which central bank will have to give up easing policies first.
"...investors remain reluctant about chasing a tape so far off its lows. Even assuming the USD weakness, oil strength, and better-than-feared Q1 reports, it’s hard to get the ’16 EPS number more than few dollars above $120 and investors should be careful..."
In Greek mythology there was a monster called Cerberus, the hound of Hades, a monstrous multi-headed dog who guarded the gates of the underworld, preventing the dead from leaving. Today central banks have taken on the role of feeding our own modern version of Cerberus to keep all the troubles away. This hound of Hades has 3 heads that are named debt, deflation and demographics. Together they make a deadly combination that will result in a massive reset of asset prices...and central bankers are running out of food to feed the monster.