Posts Tagged ‘Jens Weidmann’
July 5, 2021
Do China and Russia have state authorities investing in the markets?
If the answer is yes then global investors have many issues to consider. The use of massive amounts of leverage (perfectly legal) utilized by Sovereign Wealth Funds and national pension funds have the power to distort prices as much as the involvement by the FED, ECB and BOJ to cause major distortions in the credit markets. Add in the Bank of Canada, Reserve Bank of Australia, the RBNZ and the price of credit is as overvalued as COPPER during the onset of the pandemic.
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Tags:China, Euro, inflation, Japan Government Pension Investment Fund, Jens Weidmann, raw commodities, Russia, Sovereign Wealth Funds, U.S. dollars
Posted in Commodities, Currency | 5 Comments »
December 16, 2019
Last week was filled with the culmination of many issues as we had the FED, ECB, trade agreement, UK election, impeachment hearings, and even an attempt at resolving the USMCA trade deal with Mexico and Canada.
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Tags:BOE, Boris Johnson, China, Christine Lagarde, ECB, EU, German, Jens Weidmann, Jeremy Corbyn, Mark Carney, negative interest rates, trade agreements, U.K. elections, U.S.
Posted in Europe, UK, United States | 20 Comments »
August 27, 2019
These Simon and Garfunkel lyrics could apply to the events of this past weekend, the bookends of Jackson Hole and the G-7 meeting. The meaning was best summed up i a Financial Times story that quoted St. Louis Fed President James Bullard, who said, “Something is going on ,and that’s causing I think a total rethink of central banking and all our cherished notions about what we think we’re doing. We just have to stop thinking that next year things are going to be normal.”
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Tags:Bundesbank, ECB, Euro, G-7, James Bullard, Jens Weidmann, no exit, portfolio balance channel, tariffs
Posted in ECB, Europe, G-7 | 8 Comments »
November 25, 2018
Tonight, we at Notes From Underground will clean up some unfinished business. We will discuss a couple of important speeches and articles from the past two weeks.
Then I will answer the questions Mike Temple made on the previous blog post. In responding to some of Mike’s points I come back to the idea of INFRASTRUCTURE, which I addressed in a few other blog posts. The reason I foresee aggressive fiscal stimulus put forth by the G-20 is precisely because of some of the fears that Mike raises about the damage coming to the investment grade corporate bond market while the FED’s shrinks its balance sheet and raise interest rates. It may be having a greater impact than the FOMC wants to acknowledge.
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Tags:Bundesbank, corporate debt, ECB, Fed, FOMC, infrastructure, Jens Weidmann, U.S. Dollar
Posted in Currency, Debt Market, Fed | 14 Comments »
August 23, 2018
Here’s
another podcast from the Financial repression Authority I recorded with Richard Bonugli and Peter Boockvar. The ability for readers to listen to a free exchange of ideas is well worth the price paid to read
Notes From Underground. Before you listen, I want to call your attention to an article from the Tuesday edition of the Financial Times, which of course, received little attention from the purveyors of
PABLUM.
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Tags:Angela Merkel, ECB, Germany, Heiko Maas, Jens Weidmann, Podcast
Posted in Germany, Podcast | 16 Comments »
October 24, 2017
President Trump is the ultimate drama queen. The president is drawing out his FED selection as he titillates the markets with the drips and drabs as to who is the most probable choice. Here is my best guess: Because this president reminds the nation how great he is doing using the stock markets as the barometer it would follow that his choice would be the best one for keeping equity prices elevated. Kevin Warsh and John Taylor would be a problem as the equity markets would become cautious for fear of short-term interest rates rising at a quicker pace. It seems that Jerome Powell and Janet Yellen would be the ones to sustain the current stock rally as they are known entities to the Wall street contingent. Of course the ultimate booster of all asset classes would be Neel Kashkari, the latest dissenter to the previous rate increases in 2017.
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Tags:ECB, Euro, Fed Chair, Jens Weidmann, Mario Draghi, President Trump, QE
Posted in ECB, Fed | 9 Comments »
September 24, 2017
I will start tonight’s BLOG with two very good comments from a long time reader and contributor GREEN AB who hails from Germany. Green has always provided great insight and though we don’t always agree I have great respect for his perspective. On Thursday he posted a very prescient forecast about today’s election and Sunday he followed with a post-election thoughts.
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Tags:AfD, Angela Merkel, Bund, CDU, DAX, ECB, Euro, Euro/Yen, FDP, German elections, Green Party, Jens Weidmann, Mario Draghi
Posted in ECB, Germany | 3 Comments »
December 22, 2016
This year has been a year of surprises as conventional wisdom-based forecasts have proven to be like oral agreements: not worth the paper on which they are written. The coming year promises to bring more confusion and volatility as the markets are preparing for the U.S. to be a Trumpian utopia of wealth creation. I caution against blindly accepting this narrative for it will not be a U.S.-centric year. Attention will turn to Europe as the political cycle brings elections in the main players. France and Germany are the EU and the rest just the trimmings (so stated Charles De Gaulle). The EU is fraught with problems, so the more uncertainty raises the profile of the ECB President Mario Draghi. Senator Charles Schumer once said to Fed Chair Ben Bernanke, “You are the only game in town.” Well, an ECB with a printing press and no political accountability provides a central bank on steroids. Mario Draghi perceives himself as the savior of the EU project so expect him to be hyperactive in response to any major political changes in France. Greece, Italy and Spain still remain an economic issue so the entire EU financial system will be subject to paroxysms within its debt and equity markets.
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Tags:ECB, Jens Weidmann, Mario Draghi, QE
Posted in Debt Market, ECB, Europe | 11 Comments »
April 12, 2016
First, why was Janet Yellen summoned to the White House to meet with President Obama and Vice President Biden? The most ostensible reason is PROBABLY to get the Fed’s view on the economic impact of Trump and Bernie Sanders. Is the anger in the land a result of stagnant wages and is there any policy impact the White House could pursue without distorting the economy? Is fiscal stimulus a possible positive response and would the Fed be receptive without immediately raising rates? There are no certain answers to why Yellen went only conjecture. But one thing that caught my attention was the headline in today’s Financial Times: “Lew Urges IMF to Get Tough on Exchange Rate Manipulators.”
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Tags:Biden, Dollar, G-20, IMF, Jack Lew, Janet Yellen, Jens Weidmann, Obama, TLTRO, Yen
Posted in Currency, United States | 18 Comments »
March 10, 2016
After the smoke had cleared from ECB’s announcement to cut the deposit rate another 10 BASIS POINTS to NEGATIVE FORTY, the central bank ADDED MORE MONEY TO THE SYSTEM VIA AN INCREASE IN QE TO EIGHTY BILLION EUROS A MONTH. The press called this a BAZOOKA but I THINK IT IS A WATER PISTOL. The most significant piece of the press release on monetary policy decisions was item six, “A NEW SERIES OF FOUR TARGETED LONGER-TERM REFINANCING OPERATIONS (TLTRO 2), EACH WITH A MATURITY OF FOUR YEARS, WILL BE LAUNCHED, STARTING IN JUNE 2016. BORROWING CONDITIONS IN THESE OPERATIONS CAN BE AS LOW AS THE INTEREST RATE ON THE DEPOSIT FACILITY.”
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Tags:bazooka, BIS, ECB, Germany, Italian banks, Jens Weidmann, Mario Draghi, QE, sovereign debt, TLTRO 2
Posted in ECB | 16 Comments »