dollar shortage

Is The Negativity Overdone?

By |2019-09-09T18:40:36-04:00September 9th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Give stimulus a chance, that’s the theme being set up for this week. After relentless buying across global bond markets distorting curves, upsetting politicians and the public alike, central bankers have responded en masse. There were more rate cuts around the world in August than there had been at any point since 2009. And there’s [...]

That Can’t Be Good: China Unveils Another ‘Market Reform’

By |2019-08-19T13:16:07-04:00August 19th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Chinese have been reforming their monetary and credit system for decades. Liberalization has been an overriding goal, seen as necessary to accompany the processes which would keep the country’s economic “miracle” on track. Or get it back on track, as the case may be. Authorities had traditionally controlled interest rates through various limits and [...]

Why You Should Care Argentina More and More Looks Like Argentina

By |2019-08-13T18:01:01-04:00August 13th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Why don’t you fight the Fed? Sure, central banks and governments give off the impression that they are in control. The idea is repeated as if a fact. We are led to believe they let markets play around in their contained spheres but should anyone get out of hand authorities are there like referees to [...]

Yield Plunge: Running Out of Dollars, and Excuses

By |2019-08-05T17:56:07-04:00August 5th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As of today’s close, there are only 22 trading days in the entire history of Japan’s government bonds (JGB) where the yield (or “yield”) on its 10-year paper has been more negative. Those 22 all came clustered together in June and July 2016. In other words, Japan’s bond market is today comparable only to that [...]

Precarious Optimism As The Downgrades Confirm Infection

By |2019-07-23T16:57:18-04:00July 23rd, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

According to IMF, “global growth remains subdued.” Since it was supposed to be roaring by now, this qualifies as a substantial downgrade. Financial positions were staked out on the premise there wouldn’t be one, certainly not a disappointment coming this soon long before the breakout could actually happen. That’s why there are downside risks in [...]

Does A Second Floor Make An Effective Ceiling?

By |2019-07-22T17:06:42-04:00July 22nd, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For central bankers like Bill Dudley and Ben Bernanke, the Global Financial Crisis was a godsend. So much had been a disaster it was hard to pin down specific failures. Where does one begin? Practically everything went wrong, so take your pick. The Financial Crisis Inquiry Commission (FCIC) did its part pointing the finger at [...]

What Has Markets Spooked? Probably Something To Do With That Huge Offshore Dollar Hole

By |2019-07-12T18:32:36-04:00July 12th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Like a shark smelling blood in the water, I don’t care that the blood is in the water from leaking out of what will be a dead horse, if it isn’t deceased already. I pretty much intend to beat on it one way or another. The issue isn’t just fed funds, it’s why anyone cares [...]

Dollar Destruction Potential: From China ‘Outflows’ To The FOMC Considering QE5

By |2019-07-10T17:53:14-04:00July 10th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Tucked away in a quiet little corner of the BIS publication library, a study was published in the organization’s September 2015 Quarterly Review. One of the biggest mysteries of that time was Chinese “capital flight.” It was breathtaking, and it would only get worse. What was really going on? Many if not most mainstream stories [...]

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