Posts Tagged ‘Euro’
September 20, 2018
On Thursday Rick Santelli pushed and prodded and as a result, we were able to travel from Japan to Europe in an effort to discuss some of the more pressing issues confronting the global macro world. First, we stopped in Japan to discuss how the BOJ and Governor Kuroda will be able to extricate itself from five years of QQE which has seen the BOJ accumulate Japanese debt and equities. Of course the end game is to reach the self-imposed inflation level of 2 percent that has proved to be an agonizing level to achieve. As a reminder, when a nation is saddled with huge debts the best relief is to be found in inflation, which results in an ultimate money illusion as debts are paid back with an ever-depreciated currency.
Click on the image to watch me and Rick discuss global policy.
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Tags:Angela Merkel, BOJ, capital key, ECB, Euro, Europe, France, Germany, Japan, Kuroda, Mario Draghi, QQE, Yen
Posted in BoJ, Currency, ECB, France, Germany | 5 Comments »
September 12, 2018
First, to all of those in the NOTES community who celebrate the Jewish New Year, I wish you a year of health, peace and prosperity. To those who celebrate other spiritual endeavors I offer you a wish for health, peace and prosperity. Now, to the markets. In the past month I have spent time putting issues we’ve been discussing for the last nine years into perspective. Lately, the airwaves are filled with the accolades laid upon the policy makers who SAVED CAPITALISM. Listening to Paulson, Geithner and Bernanke pontificate on how they acted to save the system is enough to send me into fits of rage as the culprits who failed to act to halt the housing bubble praise themselves for the “Courage To Act.”
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Tags:Angel Merkel, Bernanke, BOE, Chinese Yuan, ECB, Euro, Fed, Geithner, Germany, Larry Kudlow, Paulson, trade, U.S. Dollar, Yellen
Posted in BOE, ECB, Germany, trade, United States | 20 Comments »
July 30, 2018
Coming on the heels of my first Kenny Chesney concert I am viewing the synchronicity of central banks as a reflection of the rhythms of global financial repression. Last Thursday, the ECB issued its last statement before the summer recess, while this week we have the Bank of Japan tonight, the FED on Wednesday and the Bank of England on Thursday.
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Tags:BOE, BOJ, British pound, Draghi, ECB, Euro, Fed, FOMC, Japanese yen, Kuroda, Powell, U.S. Treasuries
Posted in Central Banks | 9 Comments »
June 5, 2018
Sorry. The current situation in the European Union has been well forecasted by NOTES FROM UNDERGROUND so until the storm clouds clear and the Italian ruling coalition begins to initiate some of its campaign proposals I treat everything in Europe as a trade and not an investment. Even the talking heads are waking up to the potential financial damage that bank balance sheets loaded with ZERO RISK-WEIGHTED sovereign bonds can cause a healthy bank’s bloated balance sheet.
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Tags:Angela Merkel, balance sheet unwind, ECB, Euro, Eurobond, Fed, Germany, Italy, Mario Draghi
Posted in Debt Market, ECB, Europe, Fed, Germany, Italy | 9 Comments »
April 29, 2018
As T.S. Eliot warned in The Wasteland, April is the cruelest month, as the thaw of winter gives way to hope as the world returns to rejuvenation. April has delivered the first quarter corporate results and it is no exaggeration to state that revenue and earnings have exceeded expectations. However, the equity market results have failed to respond to the robust numbers as the SPOOS have gained a mere 1.25% and remain unchanged on the year. The NASDAQ 100 has been a much better performer as the TECH sector continues to cruise.
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Tags:ECB, Euro, Fed, Mario Draghi, NASDAQ, SNB, SPS, Thomas Jordan, U.S. Dollar
Posted in Currency, Debt Market, ECB, Fed, Germany, SNB, Switzerland | 15 Comments »
April 25, 2018
In building on the discussions in Tuesday’s POST it is important to note that the debt discussion that has taken place in Notes From Underground is gaining traction as an important piece of the financial narrative. The failure of the SPOOS, NASDAQ, and DOW to gain traction with the robust earning releases is forcing the perplexed to confront the impact and collateral damage from Ben Bernanke’s Portfolio Balance Channel, also known as QE or large-scale asset purchases.
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Tags:AMLO, BOJ, Dow, ECB, Euro, Gold, gold/euro, Kuroda, Mario Draghi, Mexico, NASDAQ, Peso, SPS, U.S. 10-Year Note, U.S. Dollar, Yuan
Posted in BoJ, Currency, Debt Market, ECB | 8 Comments »
March 26, 2018
What a week last week turned out to be (and that was if you just followed the headlines). Tariffs are taxing the global financial markets as they try to guesstimate the economic impact from the effect of tit-for-tat responses to the initial U.S. measures efforts to gain support for dealing with Chinese trade violations. The FOMC added to market volatility as the suspense over three or four rate hikes still impacts the DOT PLOTS. The Bank of England confused markets as they voted 7-2 to sustain the current interest rate policy, even though consensus assumed a 25 basis point increase. By week’s end the confusion reverberating around the globe did serious damage to equity markets as the S&PS were down almost 6 percent on the week and the European stock indices continued their continued their selloff, making them the weakest of all regions (in contravention to the punditry’s call for the buying of European stocks).
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Tags:dot plots, EU, Euro, Fed, FOMC, G-20, models, NAIRU, Phillips Curve, tarrifs, trade
Posted in Central Banks, Europe, Fed, trade, United States | 11 Comments »
February 26, 2018
There are several important areas for discussion but first I wanted to post a podcast from the Financial Repression Authority that I participated in last Wednesday with Jim Bianco and Peter Boockvar. Pour your libation of choice and have a listen. Please post any questions or points on information on the blog in order to stimulate a discussion that creates potential profitable trading ideas.The moderator Richard Bonugli does a great job of provoking discourse but allows the conversation to freely flow in search for high quality dialectic. Enjoy.
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Tags:currency war, ECB, Euro, Fed, growth, inflation, Jerome Powell, Mario Draghi, Treasury Secretary Mnuchin, U.S. Dollar
Posted in Currency, ECB, Fed | 3 Comments »
February 19, 2018
First, thank you to all the readers and friends who posted condolences and sent private notes on the passing of my dear brother Ralph. If you want to see his creativity, search for Dwight Ralphy on YouTube. They have provided me a laugh and reminder of how forward Ralph was as this work was created in the ’80s and ’90s.
For the past couple of days I have been reviewing market action and news stories that purportedly raised the volatility levels of equity, bond and currency markets. In my February 5 post I mentioned that the synchronized key reversals of the three major U.S. indices–Dow, Nasdaq and S&Ps–provided a backdrop that we have not experienced in many, many years. In June and August 2017, the Nasdaq 100 futures put in a weekly key reversal. An outside key reversal is when a market makes all-time highs and closes below the previous week’s low. This technical indicator has been a mainstay of the week of high quality technicians and last year’s failure of this long trusted indicator drove market seers crazy.
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Tags:BOJ, Bowles-Simpson, Euro, Fed, J. Powell, Japanese yen, Kuroda, U.S. bonds, U.S. budget
Posted in BoJ, Fed, United States | 12 Comments »
January 25, 2018
It seems that the White House emptied and traveled to Davos in an effort to gain control at ground zero for access journalism. The fawning media has been the epicenter for President Trump’s assault of the airwaves. The anti-globalist, drainer-of-the-swamp has become the story emanating from the Alps in an effort to destroy the memory of Chinese leader XI at last year’s conclave. President Donald was the perfect foil for the globalist masquerade party just after his inauguration but in 12 months he has hijacked the entire soiree. On Wednesday it was Trump’s minions, Mnuchin and Ross, threatening the world’s money lords with the commencement of a global trade/currency war as the U.S. Commerce Secretary was sending soldiers to the ramparts with threats of throwing dead green presidents to their doom.
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Tags:Davos, ECB, Euro, Mario Draghi, Mnuchin, President Trump, Ross
Posted in ECB | 16 Comments »
