Category Archive: 5) Global Macro

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What Happens When Rampant Asset Inflation Ends?

2016-10-19

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2016-10-19

GDP - Median Household Income
Yesterday I explained why Revealing the Real Rate of Inflation Would Crash the System. If asset inflation ceases, the net result would be the same: systemic collapse. Why is this so? In effect, central banks and states have masked the devastating stagnation of real income by encouraging households to take on debt to augment declining income and by inflating assets via quantitative easing and lowering interest rates and bond yields to near-zero (or...

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Emerging Markets: Week Ahead Preview

2016-10-17

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2016-10-17

EM FX gained a little traction on Friday, but capped a week of steady losses. As the US election and FOMC meeting next month get closer, we believe markets and risk appetite will remain volatile. So far, September data from the US does not suggest any urgency to hike in November, and so we continue to believe that December is most likely for another hike.

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Emerging Markets: What has Changed

2016-10-17

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2016-10-17

Stock Markets Emerging Markets October 12
Fitch upgraded Taiwan by a notch. Thailand has a new king. South Africa’s Finance Minister Gordhan has been summoned to appear in court to face charges. Brazil’s Congress voted to approve a constitutional amendment to freeze government spending in real terms for at least the next 10 years. Brazil’s Petrobras cut fuel prices and introduced a new pricing mechanism.

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Where Will All the Money Go When All Three Market Bubbles Pop?

2016-10-16

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2016-10-16

Since the stock, bond and real estate markets are all correlated, it's a question with no easy answer. Everyone who's not paid to be in denial knows stocks, bonds and real estate are in bubbles of one sort or another. Real estate is either an echo bubble or a bubble that exceeds the previous bubble, depending on how attractive the market is to hot-money investors.

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Great Graphic: China’s PPI and Commodities

2016-10-14

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2016-10-14

China Producer Price Inflation
China's PPI rose for the first time in four years. It is related to the rise in commodities. Yet there are good reasons there is not a perfect fit between China's PPI and commodity prices. US and UK CPI to be reported next week, risk is on the upside.

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Ending a Taking Economy and Creating a Giving Economy (Part 1)

2016-10-14

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2016-10-14

The world can no longer afford a taking economy, where “make a killing” is the motto. Together we need to create a giving and sharing economy that helps us all “make a living.” This essay will unveil the present unjust and unworkable economic system that punishes responsibility and rewards fraud.

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This Is How Quiet Fascism Works

2016-10-13

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2016-10-13

So my little-visited Wikipedia entry was minding its own business, not bothering anyone, until I dared to criticize the Clinton Foundation. The next day, my Wikipedia entry was taken out and shot by a mysterious "editor." It was just coincidence, right, that my Wikipedia entry had been available for years without offending anyone, and then suddenly it's deleted the day after I dared to criticize the Clinton Foundation.

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USA 2017-2020: An Ungovernable Nation?

2016-10-10

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2016-10-10

The U.S. needs to overthrow a corrupt, self-serving elite. Regardless of who wins the presidency, a much larger question looms: will the U.S. be ungovernable 2017-2020? There are multiple sources of the question.

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Emerging Markets: Week Ahead Preview

2016-10-09

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2016-10-09

Despite the weaker than expected US jobs report, the dollar remains firm and EM is ending the week on a soft note. The main culprit was higher US rates, with the 2-year yield moving up to 0.85% and is the highest since early June. Concerns about Brexit impact and as well the health of European banks remain ongoing and could weigh on risk sentiment this coming week. Lastly, oil may come under more pressure after Russia said it sees no deal with...

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Charles Hugh Smith 2016 The Entire Economic System Is One Big Illusion

2016-10-08

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Today’s Guest: Charles Hugh Smith Website: Of Two Minds Books: Why Our Status Quo Failed And Is Beyond Reform . Charles Hugh Smith 2016 The Entire Economic System Is One Big Illusion. Today’s Guest: Charles Hugh Smith Website: Of Two Minds Books: Why Our Status Quo Failed And Is Beyond Reform . Charles Hugh Smith …

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Emerging Markets: What has Changed

2016-10-08

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2016-10-08

In the EM equity space as measured by MSCI, Brazil (+5.3%), Czech Republic (+4.4%), and Hungary (+3.0%) have outperformed this week, while Peru (-3.3%), UAE (-2.2%), and South Africa (-1.4%) have underperformed.  To put this in better context, MSCI E...

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It’s Time We Crush the Putrid Roach Motels of Philanthro-Crony-Capitalism, Starting with the Clinton Foundation

2016-10-05

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2016-10-05

Granted, the fantasy of philanthrocapitalism is appealing: take a bunch of fabulously successful entrepreneurial billionaires, grant their foundations tax-free status, and then unleash them on the world as philanthropists who will solve problems by applying the incentives of capitalism.

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The Education Bubble: Is A Harvard MBA Worth $500,000?

2016-10-04

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2016-10-04

College students are back at their desks this month facing bleak prospects. With tightening job markets leaving kids with no place else to go, universities continue to jack up fees. The upshot is growing signs that America is in the midst of an “education bubble,” just as big as those in stock, bond, and real estate markets. Case in point: four years at Harvard University now costs nearly $250,000 [1]. If you want an MBA, add another $200,000.

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Discover Osaka: sushi, tattoos, and a flourishing nightlife | The Economist

2016-10-04

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Japan’s second city has become the country’s fastest growing tourist hotspot. Famed for its food, Osaka stands apart from other cities in Japan. A sushi chef, a poet and a tattoo artist show us why their city is the top choice for the culturally curious visitor in the latest episode of our Passport travel series. …

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Is The US Dollar Set To Soar?

2016-10-03

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2016-10-03

Hating the U.S. dollar offers the same rewards as hating a dominant sports team: it feels righteous to root for the underdogs, but it's generally unwise to let that enthusiasm become the basis of one's bets. Personally, I favor the emergence of non-state reserve currencies, for example, blockchain crypto-currencies or precious-metal-backed private currencies--currencies which can't be devalued by self-serving central banks or the private elites...

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Fun with Fake Statistics: The 5 percent “Increase” in Median Household Income Is Pure Illusion

2016-10-03

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2016-10-03

Supporters of the status quo nearly wet their pants with joy when the Census Bureau reported that real (adjusted for inflation) median household income rose 5.2% between 2014 and 2015. Too bad it was completely bogus: the supposed increase in everyone's income is pure statistical trickery.

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Emerging Markets: What has Changed

2016-09-30

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2016-09-30

Tensions between India and Pakistan are rising. The Philippine government ordered the suspension of three quarters of the nation’s mines. Czech central bank sounds more confident of the cap exit. Poland’s Finance Minister Szalamacha was sacked. Moody's downgraded Turkey one notch to Ba1 with a stable outlook. The Brazilian central bank's quarterly inflation report set the table for the easing cycle to start.

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Osaka’s Fish Market in VR | The Economist

2016-09-30

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You don’t need to wake up at 4am to visit Osaka’s fish market. Experience it through this 360° video instead, along with a tattoo studio and a sento bathhouse. A virtual tour for the culturally curious. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 This 360-degree video experience accompanies the Osaka episode of …

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Oceans VR: Net positive | The Economist

2016-09-30

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Climb aboard the case for limiting fishing on the high seas. In this 360° video, we turn you into a yellowfin tuna to take you inside the argument. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 “Oceans VR: Net positive” was produced by The Economist Media Lab with Object Normal, and was featured …

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You Want to Fix the Economy? Then First Fix Healthcare

2016-09-29

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2016-09-29

Business Sector: Real Compensation Per Hour, Average Hourly Earnings of Production and Nonsupercisory Employees
We don't just deserve an affordable, sustainable healthcare system--we're doomed to bankruptcy without one. What is blindingly obvious to employers but apparently invisible to the average zero-business-experience mainstream pundit is this: if you want to fix the economy, you must first fix healthcare.

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