Mechanics of Absurdity
Rational #monetary #policy and acknowledgment of business cycles has taken a back seat to avoidance of these economic cycles at all cost as #Central #Bankers try to justify the inane logic of #negative #rates. #ExcellentRead by @michaellebowitz @JackPScott https://t.co/3ISf8fCHCl pic.twitter.com/Q3cWFFEEIk
— Lance Roberts (@LanceRoberts) August 28, 2019
Investment Grade Bond Yields
U.S. investment-grade bond yields are 0.22 percentage point away from their all-time lows. pic.twitter.com/oBKECOGWe9
— Lisa Abramowicz (@lisaabramowicz1) August 28, 2019
Poll Results: Trump a Threat?
Is Trump a “Threat to the U.S. and Global Economy”https://t.co/Wz6tqiJUzQ
— Mike “Mish” Shedlock (@MishGEA) August 27, 2019
Poll Results: Trump More of a Threat than the Fed?
Is Trump more of a threat to the global economy than the Fed?https://t.co/Wz6tqiJUzQ
— Mike “Mish” Shedlock (@MishGEA) August 27, 2019
Argentina Default
The IMF’s biggest loan ever is in danger of falling apart: Less than 2 decades ago, Argentina crashed out of IMF program, defaulted on debt and plunged into depression. Now with $56bn loan in danger, IMF officials fly to Argentina. Investors bet on default https://t.co/PEMfD7ydzq pic.twitter.com/s6FLNoGgW1
— Holger Zschaepitz (@Schuldensuehner) August 26, 2019
Climate Model Failure
The Great Failure Of The Climate Models https://t.co/XgoKxrsmkH
— zerohedge (@zerohedge) August 26, 2019
America’s Debt Burden
AMERICA’S DEBT BURDEN WILL FUEL THE NEXT CRISIS – @RexNutting wrote an interesting piece with respect to household #debt. Digging a little deeper into the issue the #wealth and #income #gap pose a significant risk to the bottom 80% of households. $SPY $TLT https://t.co/87Q0L5JYqs pic.twitter.com/qnoHiEfdjB
— Lance Roberts (@LanceRoberts) August 26, 2019
Dollar Debt Financing
“There are five times as much transactions in the world in dollars than what we contribute to the global economy. The world is suffering is partially a post QE era rise in dominance of dollar denominated debt financing.” @BNN @DiMartinoBooth — https://t.co/CzxEv0dI4g
— Danielle DiMartino Booth (@DiMartinoBooth) August 26, 2019
Mike “Mish” Shedlock
“Mechanics of Absurdity”
Attempting to force 1+1 to = something other than 2.
Politicos of every stripe, from Washington to Beijing, love the fruits of Capitalism, but fear and despise the recession component of it’s natural cycle.
China’s first brush with recession, post-1979, occurred in the late 1980s and resulted, eventually, in the 1989 Tiananmen Square debacle.
Having almost fallen off the tiger then, the CCP apparently decided to outlaw recessions along with all other real and imagined threats to power.
To avoid recession, buying our debt and issuing their own has become their de facto economic model.
Nixon enabled it all by “temporarily” walking away from gold in 1971.
I wonder what the aristocrats have in store to kill Trumps re=election. 2020 should be a doozy for world markets.
So I’ll start a bank and borrow money from other banks at a negative rate. I’ll lend the money out at an even more negative rate. If rates still decrease, I’m in business! If they reverse, you all are holding the bag. Ka-cing!
And are now admitting to interfering with elections (or at least the desires). And are basing their monetary decisions on partisan politics.
#-#-#-#
“Under Greenspan and then Bernanke, Yellen and now Powell, rational monetary policy and acknowledgement of naturally occurring business cycles has taken a back seat to avoidance of these economic cycles at all cost. As a result, central bankers around the world are trying justify the inane logic of negative rates.”
Already making excuses because you know your idol is going down hard. Poor trump…. nobody will backstop his moronic decisions.
I see it doesn’t bother you in the least that fundamental bedrock agencies and departments (DOJ, FBI, IRS, EPA, FED, etc.) of the American Republic were turned into open weaponized partisan political hack organizations.
Whose sole mission is to destroy political enemies and citizens with opposing viewpoints.
The legacy of your messiah.
As Armstrong has repeatedly stressed, the greatest deterrent to American exports are TAXES not the dollar. An American company bidding on a foreign project must pay domestic taxes on worldwide income. A Germany or British company pays taxes ONLY on domestic business — not international. American companies are at a greater disadvantage because of taxes rather than the value of the dollar.
Also, the Fed is not the problem, it’s corrupt career politicians that will sell their soul or be so comprised with blackmailable lewd behavior that they do NOT represent the people, but the insiders/establishment. HOW DOES GETTING RID OF THE FED SOLVE THIS FUNDAMENTAL PROBLEM?
The world is suffering is partially a post QE era rise in dominance of dollar denominated debt financing.”
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Absolutely. And why King Dollar not going anywhere anytime soon. As global economy slows (like now) it will create a scarcity of $US to service offshore debt denominated in $US.
Scarcity = strength
Except when it doesn’t, like when the strong dollar and higher rates sets off the sovereign debt bomb.
The whole idea of a ‘shortage’ of dollars is a bit of a fallacy but one that is repeated ad nauseam and so everyone has jumped on this band wagon. The issue is more to do with the way lenders fund dollar loans ie in the Eurodollar market (lend long, borrow short). When times are good there are plenty of dollars available but when things get sketchy, those that have them tend to horde them or only make them available to blue chip borrowers. This dynamic is totally predictable in an environment where the currency is lent into existence. If lending were fully backed it wouldn’t be a problem.
Bear in mind that it isn’t only outside the US that there is any shortage. Domestically, there are rivers of dollars. Only drug addicts and dead beats are denied them.
The “investors” who bought the 100-year Argentine government bond issued in July 2017 were only off by 98 years. “Smart Money”…..lol.
A good thing about a default to IMF, maybe Congress will hold back future funding to IMF. IMF another operation that serves the elites. Funds 3rd world projects that have dubious benefits to the general population, but greatly benefit large Western corporations (Bechtel, etc) that build the bridges, dams, etc … of course, the leaders of those countries always sign on to the deals no matter how onerous … for the kickbacks.
“AMERICA’S DEBT BURDEN WILL FUEL THE NEXT CRISIS”
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Lance Roberts wrote a good article. But he didn’t mention (and never talked about by “experts”) that household debt situation is actually worse than statistics show. What is not counted as debt – but should be – is leasing / rent to own numbers. In the case of vehicles nearly 1/3 of all new “sales” are leases. That number alone adds over $ hundred billion / year to household balance sheet.
The rest of the world’s debt problem is worse, and currencies is a relative game. The debt bomb does not blow up all at once.
Mish, can you do your polls without using twitter? I don’t do twitter and neither do many of my more intelligent friends, including techies.
Twitter is pretty much useless for me but like other social media accounts, you can enroll and not use it. I’m on Twitter, Whatsapp, wechat, and Facebook but seldom use any.
Twitter is for twits.
Twitter, like FB and Google are tools of the corrupt establishment. I suppose Mish also keeps his money in a corrupt money center bank.