The amount of inconsistency is certainly consistent when viewing the trouble mainstream analysis has with trying to exclude the possibility of economic forces from explaining why things are the way they are. The latest trade data from China was deafening, too much to pass off as a simple case of a minor blip. Exports in January declined rather sharply, “unexpectedly” [...]
There is still no evidence that the US economy is doing anything but continued sputtering. This is not news to the rest of the world, however, as the persistent lack of actual American “demand” has been felt nearly everywhere. Domestic economists, and a great many foreign counterparts, continue to see the US as the sole engine of economic hope. But [...]
For the first time in thirty-five months, overall lending in Europe was higher year-over-year. Not since January 2012 had that been the case, as shrinking in lending was a de facto monetary limit on where the ECB wants the European economy to go. And while one month is not necessarily the start of a durable trend, indications had been for [...]
The Danish central bank, Danmarks Nationalbank, reduced its deposit rate floor by 15 bps to -0.5%. In what looks like a preemptive move aimed at potential destabilization ahead, so far they have managed to keep the krone from following in the franc’s destructiveness (short run). I think it is more than credibility at this point, after all the Swiss National [...]
The Keynesian revival that is currently underway in the backrooms and hallways of assorted world governments is being somewhat replicated in Europe this week. It is all predicated on the position that all previous forms of “stimulus” from the fiscal side were not the right size, composition or color for that matter and thus the lack of recovery can be [...]
The main problem with looking at the financial world from a “dollar” funding perspective is that there really is no such monolithic existence. The funding conditions in Russia may be very different than those of Swiss banks; they also may be far too similar. Given the impossibility of direct observation, being left outside and searching for interior clues that bubble [...]
There has been nothing good out of China in the past few months, which is why the call for more action by the PBOC has only grown. Despite what are really clear intentions, economists continue to look at financial operations in China as if it were still 2010 or even 2012. When the China PMI disappointed (for whatever that is [...]
Well, it's that time of year again, when all the pundits offer their crystal ball views of the coming new year. I don't usually participate in the prediction game and this year won't be any different. Like everyone else I wonder what the future holds but I know I have no special ability to predict how it might unfold. What [...]
With the latest TIC data in hand it looks more and more like “dollar” problems started in the interior and spread outward. What I mean by that is eurodollar banks were the first to see or cause disruption which radiated outward into other currencies and credit systems. That would seem to confirm (for me, anyway) the ECB’s role in kicking [...]
After months of hearing about how the fracking “miracle” is totally, fully and comprehensively responsible for the drop in oil prices there is finally penetrating reality. After the continued disruption in the Chinese economy as well as the close onset of recession in Europe, plus full-blown recession in Japan and Brazil, all that is left is really the diminutive hope [...]
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