IT DON’T MEAN SHIIIIITTTTT.
Let’s put aisde all the nonsense. But I will offer this: The average hourly earnings are going to begin to take on increased significance as the energy sector begins a massive shedding of HIGH PRICED jobs. Also, many other high priced employees are going to be losing work so the data is going to reflect a hit to consumers not only through the loss of jobs but from the destruction of HOURS WORKED by high income earners.
Tags:Christine Lagarde, coronabond, ECB, ESM, Eurobond, Europe, European Union, Germany
Posted in Coronavirus, ECB, Europe, Germany | 11 Comments »
This headline would have seemed ridiculous eight weeks ago but today it has great relevance. If I ran the PBOC (or rather had the totalitarian impulses of President Xi), the command from above would be trade in the overvalued U.S. debt instruments for a 3,000-year vehicle that’s a reliable store of VALUE. The world’s central banks have confirmed a central theme of NOTES FROM UNDERGROUND: It is not inflation they fear but the onset of a DEFLATIONARY SPIRAL.
Tags:dollar funding, emerging markets, Fed, Gold, swap lines, Treasury
Posted in Coronavirus, Currency, Fed, United States | 55 Comments »
These are challenging times is the understatement of the decade.
The fear of pandemic has arrived and is causing great distress for families and the nation at large as we are tending to the sick and those forced into a change of everyday patterns. Since the beginning of February, we at NOTES FROM UNDERGROUND have been discussing the onset of the DEMAND SHOCK which would cause problems in the financial system because of the massive build-up of debt on a global scale. If businesses cannot operate as people hunker down in an effort to slow the spread of the virus then it goes without saying that DEMAND would suffer. If demand suffers on a global basis borrowers without cash reserves will struggle to sustain their businesses.
Tags:Christine Lagarde, Coronavirus, demand shock, ECB, emerging markets, Eurobond, Federal Reserve, Jerome Powell, Reserve Bank of New Zealand, U.S. Dollar
Posted in Coronavirus, ECB, Fed, RBNZ | 77 Comments »
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