You don’t have to be a weather man to know which way the wind is blowing, or so says Bob Dylan. As long as all things are emanating out of China it may be the time to dust off the sayings of Mao for as the talking heads are reminding us daily: “The East Wind Is Prevailing Over the West” in all things financial. THE PROBLEM FOR ME IS I DON’T ACCEPT THAT VIEW AND AM IN THE CAMP OF FORMER DALLAS FED PRESIDENT RICHARD FISHER that all roads lead to the FED and certainly the European Union for providing the tinder for a financial prairie fire. There has been so much volatility during the first six trading days of the year it is difficult to get a handle on what is algo-driven non-fundamental and what may be the commencement of a change in previous momentum trades. Today I will go through a list of POTENTIAL SPARKS TO IGNITE THE FLAMES OF A FINANCIAL FIRE so that we can be aware of what constitutes a genuine change in momentum:
Posts Tagged ‘gold/yuan’
Notes From Underground: A Few Things Before the Financial Ship Sails
October 12, 2015When holiday markets quash volume and new items repetitive, it provides an opportunity to catch up with some general concepts in a style I like to call “Quick Hitters.”
Notes From Underground: The Washington Redskins Should Change Their Name to the Washington 37ers
September 23, 2014Just a quick note in the run up to the beginning of the Jewish New Year. A happy and healthy new year to all the readers of Notes From Underground. May your year be blessed with less turmoil both on a micro and macro level. For all my readers no matter what faith or no religious view: May we all find peace and have the wisdom and grit to prosper. Best Wishes, Yra.
This title is a tribute to the recent movements in the world financial and commodity markets. The “strong” dollar has been attributed as the dynamic factor pushing commodity prices lower and creating the environment for potential DEFLATION around the world. Emerging markets are under pressure as raw material prices drop and the fear of rising U.S. interest rates are combining to generate outflows from Mexico, Brazil, Turkey and many others. Europe is struggling to create any growth as even the EU‘s great locomotive, Germany, is beginning to feel the pains of its growth-constrained neighbors.
Notes From Underground: The IMF’s Role Has Become Too Subjective to be Objective
June 22, 2014One upon a time, the IMF‘s mission was to aid countries suffering balance of payments problems and dealing with the possible credit problems that would arise for over-extended nations. Recently, the Christine Lagarde-led IMF has acted in a more aggressive capacity when it became involved in the bailouts of the debt-plagued European peripheries. The IMF took a proactive stance in becoming one of the troika–ECB, European Commission, IMF–in an effort to stem the stress of Greece, Portugal, Cyprus (and possibly Spain and Italy). The IMF became involved not because Europe was lacking the funds but because the Germans were wavering as to how far the ECB should go in expending capital to bail out the so-called PIIGS. The European elites called upon the IMF to use its funding power to alleviate the pressure from Berlin’s demands that debtors undertake severe austerity in order to resolve the problems of recession and budgetary malfeasance. IMF Director Lagarde was very happy to open the IMF’s treasury to her comrade’s in arm: the European finance ministers. Remember, prior to Lagarde’s position at the IMF, she was the French finance minister.
Notes From Underground: Pritchard Raises An Important Issue– Is China Exporting Deflation?
April 24, 2014The equity markets were gaga over the news from Apple and Facebook and trying to push through March’s highs when Twitter was busy raising the issue about a possible Russian incursion into Eastern Ukraine. The “breaking news” failed to gather strength and the markets were soon back into positive territory. Just as the equity markets were absorbing the Russian rumors, the precious metals were making recent lows on the back of stock market strength and better economic news from the U.S. For all you technical-oriented market watchers, the gold and silver both put in outside reversal higher days so we will watch to see if there is any follow through in the metals market tomorrow.
Notes From Underground: German PMI Was Lower …. Did NSA Have The Number Early?
July 1, 2013It wouldn’t be Notes From Underground if we didn’t ask the most obvious and ridiculous question. It may be the subject of global comedians but the NSA‘s overreach is not a laughing matter for what it really shows is that in the guise of National Security, even a democratic republic leans toward political repression. This is similar to the McCarthyism that grew from what Michael Parenti called “the Anti-Communist Impulse.” Everything becomes an excuse for the government to pry and the danger for all lovers of freedom is that once governments delve into every nook and cranny of life, the end result is always disastrous. It is not about Democrat or Republican for the Democrats will not always be in office.