European and Asian shares rose again and S&P futures were little changed, as world stocks were set for a weekly gain and held near 16-month highs on Friday, while the euro steadied after swings following the European Central Bank’s decision to extend its stimulus program.
"I sometimes feel like ‘The Grim Reaper’, scouring the research savannah in a ghoulish quest to harvest bad news with a forceful sweep of my scythe. Imagine then my perverse delight when our credit team produced what is one of the scariest charts I have seen for a very long time." = Albert Edwards
Moments after Draghi's presser, the ECB addressed the issue of the Eurosystem's persistent collateral shortage issue when it introduced the use of cash as acceptable collateral, a step which will alleviate the incipient collateral shortage of eligible collateral in the Eurozone.
Coming on the sixth year anniversary of the infamous "Cablegate", when on this day in 2010 Wikileaks made global headlines when it unveiled classified cables sent to the US State Department, revealing assessments of countries and details of eavesdropping, this morning WikiLeaks released more than half a million US diplomatic cables from 1979, the year Assange dubbed "year zero" of our modern era.
While the UK was obsessing with Brexit and its aftermath, parliament quietly passed a contentious snooping law that gives authorities, everyone from police and spies to food regulators, fire officials and tax inspectors, the right to legally look at the internet browsing records of everyone in the country.
America responded to Trump’s call for a new nationalism rooted in the economic principles and patriotism of Hamilton and the men of Mount Rushmore: Washington, Lincoln, Jefferson and Theodore Roosevelt. The president-elect has declared the TPP dead, and says he and his negotiators will walk away rather than accept another NAFTA. Again, good, but again, not good enough, not nearly...The New International Economic Order imposed upon us for decades has to be overthrown.
"The Aussie apartment boom that has turned into an epic bubble with record, sky-high prices, is showing all the signs for the perfect storm which will ultimately pop. With the popping of the apartment boom, it will simultaneously bring down the Australian economy."
Regardless of your personal views on these people, they are some of the most powerful and connected financial insiders in the world. The fact that they are openly calling for a cash ban tells us that a campaign in the US is already underway.
Hayek’s The Road to Serfdom described how personal freedoms are progressively eroded by the state in the name of the common good. In the main, the serfs are patient and tolerant of their masters, but in a democracy, the establishment behind the state risks being challenged. And that has happened twice this year, first with Brexit and now with Trump in America... but remember the serfs never win, as Hayek recognised.
Global bond yields and the dollar both weakened after the Bank of Japan offered to buy an unlimited amount of debt at fixed yields, stabilizing the global bond rout, while investors awaited testimony from Fed Chair Janet Yellen that will help shape the outlook for interest rates ahead of a December rate hike that is now seen as near certain.