Reflation

The Absurd Science

By |2018-11-01T18:24:15+00:00November 1st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Language is often said to be a living thing. Common everyday usage can and does introduce new words and changes the meaning of existing ones. But this is a gradual evolution, and rarely does the process leap ahead into more drastic alterations. Central bankers, however, are challenging such preconceptions. They write words that often have [...]

Continuously Misidentifying Constant ‘Overseas Turmoil’ Leads To Constant Everywhere Turmoil

By |2018-10-31T11:27:54+00:00October 31st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Overseas turmoil continues in October. The Chinese government released its Purchasing Managers Indices (PMI) for both manufacturing and services. Each one came in at a multi-month low. The National Bureau of Statistics calculated that the manufacturing version was just 50.2 this month, the lowest level since July 2016. The Non-manufacturing PMI fell sharply to 53.9 [...]

Three Stages of Gold

By |2018-10-23T16:53:25+00:00October 23rd, 2018|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For days after China shocked the world in August 2015, “devaluing” its currency seemingly out of nowhere, there was only confusion as to what had just happened. Going by nothing more than the mainstream media and economic narrative fed to it by central bankers and Economists (redundant), you wouldn’t have known anything was wrong at [...]

Yes, Sweden Is A Domino

By |2018-09-12T12:17:39+00:00September 12th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Over the weekend, another European nation turned toward the populist direction. It was enough to get one’s attention when Italy did it, but Sweden is something else altogether. The country has been long held out as an exemplar of everything that is right with globalization. They have industry, youth, etc. How in the world could [...]

Japan’s Not Really A Domino, Though The Timing Is Right

By |2018-09-07T17:41:19+00:00September 7th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

This year is just different. Increasingly so. Not just in one or two places, either, but in way too many places. In Japan, for instance, real Household Spending rose by the smallest amount in July, according to the latest estimates from Statistics Japan. In 2017, this would have been a worrisome sign. In 2018, it [...]

One Fragile Year In Review: It Was A Warning

By |2018-09-05T17:46:54+00:00September 5th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

One year ago today, something broke. It wasn't a big thing, practically a footnote seemingly not worth mainstream attention. Out of nowhere, the 4-week T-bill yield spiked. On Friday, September 1, 2017, the equivalent interest rate for the instrument was steady at 96 bps. That was already a problem because the Federal Reserve’s RRP was [...]