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liquidation

Why So Much Inventory?

By |2017-09-08T12:40:32-04:00September 8th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Liquidity and more so liquidity preferences are vastly misunderstood for a whole host of reasons. A lot of it has to do with the dominant strains of Economics battling each other (saltwater vs. freshwater) over which statistical model fails less frequently. In shifting to mathematics and statistics, something great has been lost. Economists don’t understand how an economy works; and [...]

Again?

By |2017-03-20T17:39:22-04:00March 20th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It is more than interesting that Herbert Hoover has become the modern ideal of the liquidationist. In these very trying times, one is either that or a Keynesian, Hoover’s supposed opposite, an interventionist who believes there is no good in any recession or deflation at any time. To “prove” the superior foundations of the latter, the ideological associates of that [...]

It’s Truly Nothing Like It Was Supposed To Be

By |2016-10-24T17:47:00-04:00October 24th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Earlier this year it was reported that a great many OPEC nations were on track to repay China in oil rather than “dollars.” Reuters had calculated that between $30 and $50 billion of prior loans were to be closed out via each country’s crude capacities. As the price of the black stuff has dropped, however, that leaves them with little [...]

CNH Stands In

By |2016-06-10T19:32:47-04:00June 10th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With stocks down for a second day, attention has been focused on the UK vote potentially in favor of leaving the EU. It seems like a naturally disruptive event, or at least in theory, an outcome that the mainstream globalist persuasion continues to emphasize. That is certainly one possible explanation, but a more likely scenario is one where CNY plays [...]

More ‘Dollar’ Warning

By |2016-06-10T17:44:56-04:00June 10th, 2016|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In August 2013, the Treasury Department through its Treasury International Capital data (TIC) put a scale on that summer’s disruption. With a two month delay, the TIC figures gave us some insight as to why the fixed income/MBS selloff that summer was so violent; and further why it had so easily spread to currency markets. The destabilization of that event [...]

Warning Of A Warning; Crossing February 11

By |2016-06-09T19:06:08-04:00June 9th, 2016|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Eurodollar futures prices rose again today, the seventh consecutive increase in most maturities. Six of those days were relatively small moves, the biggest jump last Friday with the release of the payroll report. For the benchmark June 2018 contract, the price is heading back up to the upper limit of the post-liquidation cycling. Trading has been confined to a very [...]

Converting Into The (So Far) Broken Correlation

By |2016-05-27T17:12:13-04:00May 27th, 2016|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Chinese exchange rate has traded lower for five consecutive days, and aside from essentially no change last Friday would have been eight in a row. That contrasts with the downward pattern that existed ever since the turn in mid-April where only the general direction was down in not so much a straight line. The slope isn’t dramatic, but it [...]

Waves Not Solid Cycles; The Difference of Heavy Monetary Influence

By |2016-05-13T19:11:20-04:00May 13th, 2016|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

It’s not just that there was an obvious and intense change in sentiment, as that is quite common among and within markets. It is more so that this repetition is a little too familiar. In January, the mainstream was taken aback as the world looked headed for a very dark place, all “unexpected” of course. Just a few months later, [...]

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