Where central banks are concerned, it’s not conspiracy theory so much as the term “off-balance sheet.” There’s a reason Enron kicked off that mass-migration into the footnotes. For monetary officials, there’s the choice to be like Montagu Norman and what he thought of good practice at central banks. Silence.For years, the Chinese have tried it the other way. Big Mama [...]
When Argentina requested, and received, a ~$50 billion bailout from the IMF in mid-2018 it was a total shock (to those who follow only central bankers and Economists when it comes to anything, though especially relating to the global dollar system). The platitudes were issued alongside standby financing which lasted only a couple of months before the stricken country pleaded [...]
For awhile there, a few weeks anyway, the 30-year US Treasury long bond had become the star of the mainstream show. Showered with its 15 minutes of fame, everyone loved how, for once, it seemed to agree with Jay Powell and the preferred narrative about the effectiveness of his technocracy. The idiocy of this attention was exposed by just how [...]
I guess in some ways it’s a race against the clock. What the optimists are really saying is the equivalent of the old eighties neo-Keynesian notion of filling in the troughs. That’s what government spending and monetary “stimulus” intend to accomplish, to limit the downside in a bid to buy time. Time for what? The economy to heal on its [...]
The lack of issuance and supply over the last almost year or so, that’s what makes the TIC data so fascinating. And relevant, if for other reasons, too. CLO issuance, according to a bunch of sources, peaked back last June. Remember that whole “recession scare” with the yield curve last summer? It wasn’t just a scare, at least not in [...]
Apple: https://apple.co/3czMcWN Castro: https://bit.ly/30DMYza Google: https://bit.ly/3e2Z48M TuneIn: http://tun.in/pjT2Z Spotify: https://spoti.fi/3arP8mY Stitcher: https://bit.ly/2C1M1GB Overcast: https://bit.ly/2YyDsLa PocketCast: https://pca.st/encarkdt AlhambraTube: https://youtu.be/UTTjUGp-K-o Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] Econometrics? Sure. But are you familiar with the study of tasseomancy? Never given it any serious thought? Then how can you possibly understand the Chinese economy?Your podcaster shunned traditional university education and instead [...]
It’s another one of those myths that gets repeated over and over because it has never been realistically challenged. Not in any public way. The Fed says its dollar swap lines, central bank liquidity swaps as they call them today, worked beautifully. They may not use that particular word to describe the results, but you are distinctly left with that [...]
In the initial days and weeks of the COVID (overreaction) shutdown, layoffs and furloughs were mostly a function of that very thing. A non-economic disruption. As time has gone on, however, continued joblessness can only be a function of economic factors meaning a huge problem (deflation) that isn’t being solved by time. Because of this huge “surprise” in employment data, [...]
According to Germany’s ZEW, economic prospects for the intermediate future in that country (and for Europe, separate survey) haven’t been this positive since 2006. Back then you might remember the rip-roaring contributions of asset bubbles, and I don’t mean the stock market and valuations. A huge wave of credit expansion in pretty much every corner of the globe courtesy of [...]
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