201505.05
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Are Funding Markets Preparing For the Next QE?

As the “dollar” has taken back some of its pressure we are seeing at least some of the effects of that in various credit and funding markets. There can be no doubt now that the March 18, 2015, FOMC decision to at least position more “dovish” removed a great deal of “dollar” stress from the…

201505.04
3
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Missing Currency

The conventional wisdom last year as it related to the “dollar” was that its ascent had to be confirmation of the divergence between US economic fortune and the continued and even growth misfortune of the rest of the world. That is pretty much standard orthodoxy as it seeks to align financialism with a generic view…

201504.29
2
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‘Dollar’ Coming Back Into Focus

The FOMC statement changes seem to have initiated knee-jerk reactions undoing the interpretations of the March statement. In other words, the first blush of FOMC obfuscation appears to be trending back toward “hawkishness” in clear defiance of last month’s clear “dovishness.” The basis for that seems to be the references to what the Fed is…

201504.27
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Just Another Hedge Fund

On September 21, 2008, Goldman Sachs announced its intention to become the then-fourth largest bank holding company, bringing it under the Federal Reserve’s regulatory umbrella. The timing of the change makes perfect sense, a week after Lehman triggered an ongoing panic, but in the perspective of wider systemic arrangements it was an odd attempt at…

201504.26
2
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Down The Rabbit Hole

When logic and proportion have fallen sloppy dead And the white knight is talking backwards And the red queen’s off with her head… Grace Slick, White Rabbit ‘Twas brilling, and the slithy toves Did gyre and gimble in the wabe: All mimsy were the borogoves, And the mome raths ougrabe Lewis Carrol, Jabberwocky For those…

201504.24
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Old Fashioned In Europe

The theme this week has been one of killing currencies, or monetary genocide, as that seems to be reaching once-believed improbable levels of descent. While not specifically a self-contained series, the prior pieces, which are relevant to this discussion, are here, here and here. My intent so far as this angle is far more speculative,…

201504.22
6
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‘Rationality’ Behind the Currency Genocide

I believe the phrase that is attaining Paul Krugman all these invitations to “consult” on economic failure is one that he has used pretty consistently for years. He says “deflationary vortex” and for a long while it was ignored as studious monetarists were busy inflating away; except that none of them, from the Fed to…

201504.21
3
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Aiming Now At the ‘Dollar’

With the PBOC’s apparent schizophrenia on display it is unsurprising that there would be another default. I don’t find any coincidence between the timing of that announcement, in Hong Kong, and the fact that the PBOC both “tightened” and “loosened” in the past few days. They have been pretty consistent about that going back to…

201504.21
7
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Currency Genocide Inward

Yesterday brought on an exposition on the death of currency, but it was only one dimension in that process. Owing to the orientation of monetary policy, especially under QE conditions, most attention is focused outward from short to long. The irreconcilably truth, as I put it, is that destroying time value amounts to depressing financial…

201504.20
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Getting October 15 Right, Even to Crude

It is becoming settled wisdom that the most dangerous aspects of any current financial contours are due almost entirely to some version of HFT or electronic trading. That is undoubtedly true, as far as it might relate to one aspect, but to claim that computers are the single biggest source, let along only source, of…