Category Archive: 5) Global Macro

No China Trade Interpretations

The National Bureau of Statistics (NBS) of China does not publish any of the big three data series (Industrial Production, Retail Sales, Fixed Asset Investment) for the month of January. It combines January data with February data because of the large distortions caused by Lunar New Year holidays.

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Emerging Markets: What Has Changed

Reserve Bank of India signaled an end to the easing cycle. S&P moved the outlook on Indonesia’s BBB- rating from stable to positive. The ruling Law and Justice party in Poland may be backing off of plans to force banks to convert $36 bln in foreign currency loans. Romanian Justice Minister Lordache resigned. Local press is reporting that Brazil’s central bank may cut the 2019 inflation target from 4.5% to 4.25%.

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How Iranians use music to protest against the regime | The Economist

This week in 1979 the world ’s first Islamic Revolution toppled the ruling dynasty of Shah Reza Pahlavi in Iran. The intertwining of religion and state has been tough for some Iranians, but they are increasingly using culture as a means to protest against the regime. Click here to subscribe to The Economist on YouTube: …

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Jobless Claims Look Great, Until We Examine The Further Potential For What We Really, Really Don’t Want

Initial jobless claims fell to just 234k for the week of February 4, nearly matching the 233k multi-decade low in mid-November. That brought the 4-week moving average down to just 244k, which was a new low going all the way back to the early 1970’s. Jobless claims seemingly stand in sharp contrast to other labor market figures which have been suggesting an economic slowdown for nearly two years.

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The Colonization of Local-Business Main Street by Corporate America

This is what our mode of production optimizes: ugliness, debt-serfdom, and servitude to politically dominant corporations.

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The Central Banks Pull Back: Now It’s Up to Fiscal Policy to “Save the World”

Another problem is the rise of social discord, for reasons that extend beyond the reach of tax reductions and increased infrastructure spending. Have you noticed that the breathless anticipation of the next central bank "save" has diminished? Remember when the financial media was in a tizzy of excitement, speculating on what new central bank expansion would send the global markets higher in paroxysms of risk-on joy?

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Expropriation and Impoverishment: “Capitalist” Greece and “Socialist” Venezuela

Yesterday I noted that not all assets will make it through the inevitable financial re-set. ( Which Assets Are Most Likely to Survive the Inevitable "System Re-Set"?) Those that are easy to expropriate will be expropriated, and those assets vulnerable to soaring taxes, inflation and currency devaluation will also be hollowed out.

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KAL draws… predatory pricing in business competition

Dumping: when a firm floods a market with cheap goods to undercut the competition. Illustrated by our cartoonist KAL. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 Daily Watch: mind-stretching short films every day of the working week. For more from Economist Films visit: http://films.economist.com/ Check out The Economist’s full video catalogue: http://econ.st/20IehQk …

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Which Assets Are Most Likely to Survive the Inevitable “System Re-Set”?

Your skills, knowledge and and social capital will emerge unscathed on the other side of the re-set wormhole. Your financial assets held in centrally controlled institutions will not. Longtime correspondent C.A. recently asked a question every American household should be asking: which assets are most likely to survive the "system re-set" that is now inevitable?

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America’s embargo against Cuba | The Economist

America imposed a full trade embargo against Cuba 55 years ago, in an attempt to crack Fidel Castro’s Communist regime. Antonio José Ponte, an exiled Cuban writer, and Aleida Guevara, the daughter of Che Guevara, reveal how the embargo shaped Havana’s revolutionary story. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 Fifty-five years …

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Emerging Markets: Week Ahead Preview

EM ended the week on a firm note, with markets digesting what they perceived as a dovish Fed bias. We disagree, and continue to believe that markets are underestimating the Fed’s capacity to tighten this year. EM FX could continue gaining some traction if the dollar correction continues, but we think US interest rates will ultimately move higher and put pressure on EM once again.

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The Central Banks Face Unwelcome Realities: Their Policies Boosted Wealth Inequality, Failed to Generate “Growth”

Rather than be seen to be further enriching the rich, I think central banks will start closing the "free money for financiers" spigots. Take a quick glance at these charts of the Federal Reserve balance sheet and bank credit in the U.S.

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India: The World’s Fastest Growing Large Economy?

India has been the world’s favorite country for the last three years. It is believed to have superseded China as the world’s fastest growing large economy. India is expected to grow at 7.5%. Compare that to the mere 6.3% growth that China has “fallen” to.

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GoldSeek Radio – Feb 3, 2017 [CHARLES HUGH SMITH & JIM ROGERS] weekly

GoldSeek Radio’s Chris Waltzek talks to Charles Hugh Smith from Of Two Minds http://www.oftwominds.com/blog.html and to Famed investor Jim Rogers http://www.jimrogers.com/ http://www.goldseek.com/ http://radio.goldseek.com/

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Emerging Markets: What has Changed

Philippine Environment Department suspended 5 mines and closed 21 after a nationwide audit. The Turkish central bank raised its end-2017 forecast from 6.5% to 8% due largely to the weak lira. Central Bank of Turkey finally got around to releasing the schedule of its MPC meetings this year. Fitch downgraded Turkey last Friday to sub-investment grade BB+, as expected. Allies of Brazil President Michel Temer now head up both houses of congress. Press...

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What Would a Labor-Centered Economy Look Like?

How about moving the power to create money from the apex of the pyramid down to its lowest level? Let's spend a moment deconstructing the word "capitalism." Note it contains the word Capital. So far so good. Obviously the key concept here is capital. So what is "capital"? It turns out there are multiple kinds of capital. The most familiar kinds are tangible: cash, orchards, factories, water rights, tools, and so on.

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Donald Trump’s tough phone call, as drawn by our cartoonist KAL

America’s president Donald Trump and Australian Prime Minister Malcolm Turnbull have been facing questions about their “frank and forthright” phone call at the weekend. Our cartoonist, Kal, listens in to the next call on the president’s list. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 Daily Watch: mind-stretching short films every day of …

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GSR interviews CHARLES HUGH SMITH – Feb 2, 2017 Nugget

GoldSeek Radio’s Chris Waltzek talks to Charles Hugh Smith from Of Two Minds http://www.oftwominds.com/blog.html http://www.goldseek.com/ http://radio.goldseek.com/

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Why Our System Is Broken: Cheap Credit Is King

You want to fix the economic system, reduce political bribery and reduce rising income inequality? Shut off the cheap unlimited credit spigot to banks, financiers and corporations. Cheap credit--newly issued money that can be borrowed at low rates of interest--is presented as the savior of our economic system, but in reality, it's why our system is broken.

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A new environmental idea to do away with waste | The Economist

A project in the Philippines is turning decayed fishing nets into the raw materials for a carpet tile manufacturer in Britain, reusing rather than disposing of what was once thought of as rubbish. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 This is ground zero for new thinking on waste – beyond recycling …

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