Japan

Japan Orders Military To 'State Of Alert' As North Korea Accuses US Of Seeking 'Preemptive Nuclear Strike'

Just days after North Korea has accused Washington of planning a preemptive nuclear strike - following the US announcement that it would deploy its B-1 bomber in the Pacific for the first time in a decade - Japan's increasingly militarist tone just ratcheted up to '11' as defense ministry officials have ordered its military to be ready at any time to shoot down any North Korean missiles that threaten to strike Japan, putting its forces on a state of alert for at least three months.

A Crisis Of Intervention

"Dishonest money has created a culture of speculation out of ordinary producers and savers. As a result, we confuse financial markets for the source of our wealth." Perhaps at some point our central bankers will come to appreciate that wealth is not created by the printing of money. It is created by honest entrepreneurial endeavour, which is itself jeopardised by constant monetary intervention.

August Corporate Bond Issuance Breaks All Records Thanks To Relentless Demand For Yield

It has been a scorching August for the continental US, with the government predicting, for the first time on record, that every square inch of all 50 states is forecast to see above-average temperatures for the next three months. However, that is nothing compared to what is taking place in the blistering bond market, where new bond issuance is on pace to blow away all records.

Preview Of Key Events In The Coming Week

The coming week brings multiple macro data releases for July, including inflation, trade data, retail sales, IP, credit and money supply. A relatively light US data calendar next week with retail sales the main release on Friday but also import and producer prices and Michigan sentiment coming up. Retail sales will be closely watched to assess consumer spending growth for 3Q.

Frontrunning: August 8

  • Global stocks, dollar gain as payrolls fuel risk-on trades (Reuters)
  • Suicide bomber kills at least 50 at Pakistan hospital (Reuters)
  • Waiting Forever for Fed Model Bull Case on Stocks to Come True (BBG)
  • Oil Rises Despite Supply Glut (WSJ)
  • Fed's Powell urges patience on U.S. rates, citing growth risks (Reuters)
  • Trump to Propose Moratorium on New Financial Regulations (BBG)

Weak Chinese Trade Data Confirms Global Slowdown, Imports Tumble

While central banks continue to "print" liquidity, now at a pace of nearly $200 billion per month, they are unable to print trade, perhaps the single best indicator of deteriorating global economic conditions. The latest confirmation came overnight from China, which reported another batch of disappointing trade data including imports which have now declined for 21 straight months, while exports have fallen for 12 of 13 months.

S&P To Open At New Record High As Commodities Rise, China Trade Disappoints

The meltup continues with the S&P500 set to open at new all time highs as futures rise 0.2% overnight, with European, Asian stocks higher, as job data pushed MSCI Asia Pacific Index towards highest close since Aug. 2015. Germany, U.K. economic data seen positive, with dollar, oil rising, and gold declining. The MSCI All-Country World Index rose 0.4% and was headed for its highest close in almost a year.

Moscow, Beijing, & Washington: A Complicated Triangle

The aspirations to global dominance of the American deep state have resulted in pushing China and Russia to adopt a comprehensive shared strategy in which they place at the center of their relations common interests rather than differences. The maneuvers towards de-dollarization are already being conducted. This for Washington is an existential threat that can hardly be ignored. Equally improbable is the possibility of America halting this drift.

Goldman: Sell Right Now And Go Away For The Next 365 Days

"In the US, muted growth will be offset by P/E multiple contraction, suggesting a flat US equity market in the next 12 months. Stock valuations stand at historical extremes. The median trades at a forward P/E of 18.2x, ranking in the 98th percentile since 1976. Rising wage inflation will weigh on profit margins and limit further P/E expansion. Expectations of additional Fed tightening by year-end represent another headwind to higher equity prices"

Saving The System: Exposing The 4 Fallacies Of Modern Monetary Policy

Monetary policy, we are told, is all about staving off recession and stimulating economic growth. However, not only is monetary debasement in any form counterproductive and destroys the personal wealth of the masses, but the economists who devised today’s monetarism have completely lost their way. The real reason for today’s global monetary policies is an ultimately futile attempt to prevent a systemic and economic crisis.