Moments ago the the Philadelphia City Council approved a 1.5-cent-per-ounce tax on sugar-sweetened and diet beverages, the first such tax imposed in a major U.S. city. The reason? The Council is looking to raise about $91 million for an expansion of early childhood education. Instead, the money will most likely be siphoned off into various underground ventures (and bank accounts) or outright embezzled.
With precious metals prices soaring this week, month, and year on the back of flailing Fed credibility, it is not entirely surprising that assets in exchange-traded funds backed by silver have swelled as investors seek a haven from global economic and political risk. In fact, as of today, Silver ETF holdings have never been higher...
The big risk for the Fed has always been the market would “call their bluff” be unwilling to buy into the “forward guidance.”It is currently too soon to know for certain but reactions following yesterday’s announcement are not promising.
With the fingerpointing over the culpability of the Orlando shooting a raging issue in this week's political news cycle, earlier today neocon senator John McCain said President Obama was “directly responsible” for the terror attack in Orlando due to his failure to combat the rise of the Islamic State terror group.
“While we respect the firms’ judgment about what best serves their long-term competitive interests, we are aware of no market-driven basis for such an increase and do not expect to bear the costs of the firms’ decisions”
The fact that a guy who had a privileged life resorted to not only pissing away $20 million of his own inheritance, but then stealing from friends and family, including his own mother says enough... but trying to blame it on "compulsive gambling and mental health illness" issues just sums up this nation's "wasn't my fault," #NeverConsequences new normal.
If Donald Trump has even a partial clue about the nation’s monumental economic mess one of his first acts will be to demand Janet Yellen’s resignation. And for sheer incompetence among countless other failings. She was out there again yesterday talking in completely incoherent circles. On the one hand, Yellen robotically insisted that the U.S. economy is moving steadily toward the Keynesian nirvana of full employment. At the same time, she struck a profile in cowardice that was downright pathetic.
In the last few years, several markets/asset classes have shown signs of weakness, if not outright implosion: EU banks, EU stocks, Base Metals, Energy Commodities, Japan stocks, EM stocks and currencies. The bubble built in them by the excess liquidity provided by Central banks, as they were busy fighting structural deflationary trends (and crowding the private sector out of bonds), has deflated in most parts of the market, except two: US equity and G10 Real Estate.
One of the oddest things in this increasingly odd world is the spread of negative interest rates everywhere but in the US. One answer is that the Bank of Japan and the European Central Bank are buying up all the high-quality (and increasing amounts of low-quality) debt in their territories, thus forcing down rates, while the US Fed has stopped its own bond buying program. The other answer is that this is just one of those periodic anomalies that persist for a while and then get arbitraged away. And Brexit might be the catalyst for that phase change.