In a world where one country has traditionally stepped up when fiduciary idiots are desperately needed, it is not really a shock that Chinese state-owned entities are in talks about investing a combined $5 billion to $10 billion in Aramco’s IPO.
‘Fortunately’ there is always the fall-back of “Populism”, as a growing list of countries see street riots – but that comes worryingly close to criticism of the global system. I find it hard to see a central bank rushing to cut rates three or four times “because of the risks of populism”.
US Productivity unexpectedly posted the first decline in almost four years and labor costs accelerated in Q3, suggesting a pickup in efficiency earlier this year was more of a temporary shift.
US futures were unchanged, and global stock markets hit a pause after a torrid three-day rally on Wednesday as traders failed to any new intravenous trade talk "optimism" to offset the deepening global earnings recession.
After last week's surprise crude build, analysts expected more of the same, and API reported an even bigger than expected crude build of 4.26mm (vs 2mm exp).
...but that doesn’t mean MMT won’t be tried, as the three engines of “growth” over the past 20 years - soaring debt, financialization and globalization - all falter.
