Europe Votes To Suspend Turkey EU Accession Talks, Sending Lira Crashing To Record Low Despite Unexpected Rate Hike
The large global bond market selloff of late has naturally elicited much commentary from investment strategists and the financial media. By some estimates as much as $1tn in bond value has been wiped out. That is a large number. But what is behind the selloff? Did expectations for Fed rate hikes suddenly surge? In fact, rate expectations have risen only modestly, perhaps in reaction to president-elect Trump’s expected fiscal stimulus plans. More important has been a large expansion in so-called ‘term-premia’ for longer-dated bonds. Term premia represent the additional yield bondholders require for holding long-dated bonds as opposed to short-dated paper. When premia fall, so does the real cost of long-term borrowing and vice-versa. This is why recent developments are of such interest, as premia have remained structurally low for years. In this report, we explore the implications of a premia reversal on financial assets, the dollar and gold. In brief, gold is highly likely to outperform financial assets in this environment, although not necessarily the dollar itself. The key to the dollar is to understand the Fed’s reaction function to the above.
Anyone who’s been reading me for more than a couple of days understands that I have serious reservations about Donald Trump. My concerns stem primarily from his authoritarian tendencies, as well as his stated disregard for civil liberties. Nevertheless, as I outlined in my post-election piece, Americans Roll the Dice With President Donald Trump, I very much want Trump to succeed, because this country needs him to succeed. Tens of millions of our fellow citizens are suffering under the weight of undue financial burdens, largely the result of an economy completely controlled by unethical and ruthless oligarchs thanks to their bought and paid for political stooges. This unholy union needs to be shattered before this country can be “made great again.”
Some pretty good economic reports have energized various parts of the financial markets lately. Consumer spending is up, GDP is exceeding expectations and even factory orders, that perennial downer, popped this morning.
In response the dollar is soaring and interest rates are at breaking out of their multi-decade down-channel. The economy is clearly recovering, implying a return to normality. Right?
Nah, it’s just the usual election year illusion. When the presidency is at stake the party in power always pumps up spending in an attempt to put people back to work and create the impression of a well-run country whose leaders deserve more time in the spotlight. After the election, spending returns to trend and the resulting bad news gets buried in “political honeymoon” media coverage.
As of earlier today, the subreddit, r/Pizzagate, was officially banned by Reddit which posted the following notice to their site:
For those not familiar with the movement, the “Pizzagate” subreddit was started by a group of Trump-supporting internet sleuths who were attempting to use WikiLeaks’ leaked Podesta emails to connect the Clintons and John Podesta to the convicted sex offender, Jeffrey Epstein. That said, when the Podesta emails failed to reveal a “smoking gun” linkage, the sleuths instead turned their focus to mulitple “pizza” references in Podesta’s emails which then led to the speculation that those “pizza” references must be code for something far more sinister.
Nick Giambruno: The inevitable breakdown of the European Union and the massive financial crisis it could trigger is an important theme for us right now.
I’ve just spent weeks with my boots on the ground in Italy. The country has enormous public debt levels, and its banking system is on the verge of collapse.
Italy could trigger the collapse of the entire EU, which could start an irreversible trend. It’s a sign that globalism—the secular religion of the Deep State—is a failed ideology.
By globalism, I simply mean the centralization of power into global institutions: the EU, the United Nations, the IMF, the World Bank, NAFTA, GATCA, NATO, and so forth. Globalism is really just a polite way of describing world government, or what George H.W. Bush termed the New World Order.
I suspect that politicians... would soon be listed on the menu...
There’s a brand new way to save the planet, and a group of professors from Oxford University wants to force the issue by assessing enormous taxes on foods said to have higher “climate impact.”
To make a long story short, they want to force everyone who doesn’t have a high income to become vegan by taxing the living daylights out of animal products. If you think your grocery bill is out of control now, just you wait if these scientists get their way.
By taxing items like beef by 40%, dairy products and poultry by 20%, and certain vegetable oils, the planet will be saved.
It’s official. The annual pre-order page for the “World In ….” issue of The Economist magazine is available (linked here). The Economist magazine is, of course, that freely acknowledged printed-page mouthpiece of the Rothschild Empire. Lest anyone care to debate that statement, may I direct your attention to their own words as published on The Economist’s official Wikipedia page (linked here). This is a magazine that speaks from the heart of the City of London and thence, we can assume, from the Knights Templar themselves, with all its Kabbalistic and Rosicrucian heritage.