Trump’s corporate tax cut is supply-side stimulus I could agree with if done right, even though it primarily helps the rich. Trump's cut of the top rate from 35% to 15% is the largest of its kind in the history the United States.
"...after every single two-term presidential election (i.e. when the incumbent changes) and there is a 100% track record of a recession within the next 12 months. It either starts just beforehand or starts afterward, but within 12 months there is a 100% chance of a recession... Even if they do raise rates, the yield curve will flatten like crazy... I think the Fed is almost an irrelevance at this point."
The naive hopes of Bernie Sanders’ supporters - to build a grass-roots political movement, change the Democratic Party from within and push Hillary Clinton to the left - have failed.The multibillion-dollar extravaganza of our electoral Circus Maximus is part of the smokescreen that covers the ongoing devastation of globalization, deindustrialization, trade deals such as the Trans-Pacific Partnership, endless war, climate change and the intrusion into every corner of our lives by the security and surveillance state. Our democracy is dead.
Hundreds of thousands took to city streets across Germany on Saturday as they marched against a pair of corporate-backed trade deals they say will undermine democracy, attack workers and local economies, and accelerate the threats posed by corporate hegemony and global warming.
We are accustomed to looking at Europe’s woes in a purely financial context. This is a mistake, because it misses the real reasons why the EU will fail and not survive the next financial crisis. We normally survive financial crises, thanks to the successful actions of central banks as lenders of last resort. However, the origins and construction of both the the euro and the EU itself could ensure the next financial crisis commences in the coming months, and will exceed the capabilities of the ECB to save the system.
"We need solutions for Europe and we are in a critical situation," Merkel said as she arrived at the gathering. "You can't solve all Europe's problems in one summit. What we have to do is show in our deeds we can do things better in the realms of security and fighting terrorism, and in the field of defense."
"They are dropping like a stone," warns one European credit strategist as signals from the bottom of Deutsche Bank's capital structure signal a "huge increase in the potential for a coupon skip." With DB stock tumbling towards record lows again (EUR 11 handle), Bloomberg reports, the bank’s 1.75 billion euros ($2 billion) of 6% additional Tier 1 bonds, the first notes to take losses in a crisis, are crashing... as the world's most systemically dangerous bank faces existential problems once again.
European and Japanese banking officials are reportedly enraged that the (US-backed) world's top banking regulator would dare to demand banks hold higher levels of capital to meet credit, market and operational risks. These rules are not new, of course, but the bankers, used to getting their own way reportedly demanded in two heated meetings this week that The Basel Committee 'scale back; the rules to ensure the rules have no “particularly negative consequences for specific regions,” such as Europe.
If Angela Merkel has been waiting for just the right moment when she can unleash the Bundeswehr to "pacify" the unruly public, she may have an opening. According to Deutsche Welle, in the small town of Bautzen in the state of Saxony, a second night of violent clashes broke out between residents and migrants.
It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.
"We are going to move towards an EU army much faster than people believe." But the creation of a European army, a long-held goal of European federalists, would entail an unprecedented transfer of sovereignty from European nation states to unelected bureaucrats in Brussels, the de facto capital of the EU.