Posts Tagged ‘Steve Mnuchin’

Notes From Underground: Trump Has Weaponized The Dollar. Do the Longs Know?

June 12, 2019

Some shots were fired last Friday, but it seems that the markets can only hear the siren song of White House tweets. There was an important story from Bloomberg reporter Saleha Mohsin titled, “Trump’s Currency War Plan Puts Treasury and Commerce at Odds.” The article noted that “a Commerce Department proposal to impose countervailing tariffs on countries that it determines have devalued their currencies has alarmed officials at the Treasury Department.”

It appears that President Trump has grown frustrated by Treasury’s failure to name any country as a “currency manipulator.” It has been Treasury’s bailiwick to monitor the foreign exchange interventions of countries who strive to artificially hold down the value of their currencies in an effort gain a competitive advantage versus any G20 country, especially the U.S. (from the Treasury Department perspective).

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Notes From Underground: Please, Please Pepper Spray Davos

January 24, 2018

The U.S. dollar fiduciaries wreaked havoc on markets as Secretary Mnuchin and Commerce Secretary Wilbur Ross hit dollar bulls with a one-two punch that sent the dollar index to three-year lows. I sure hope that Mrs. Mnuchin mirrored the behavior of previous Swiss National Bank (SNB) Chairman Phillip Hildebrand, who was forced to resign in January 2012 when it was discovered his wife made a currency trade three weeks prior to an SNB policy announcement. I am sure that no White House Davos participants acted in any kleptocratic fashion (sarcasm intended). The price of a $650,000 ticket to Davos has to be of some value. Now, moving beyond sarcasm, Secretary Mnuchin broke with tradition to openly suggesting that a weaker DOLLAR is good for American trade and thus economic performance.

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Notes From Underground: The Chinese Cite Hyman Minsky

October 19, 2017

First a few jokes: My sources tell me that the new Fed Chairman will be Marc Faber; second, as Lloyd Blankfein is chirping about Brexit and Goldman moving to Frankfurt, Germany, he opined several years ago that Goldman was doing God’s work. Well, being the cyclical time in the Jewish Torah of the reading of NOAH, I remind Blankfein that Noah was also part of God’s work. (Pour a scotch and laugh).

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Notes From Underground: Now Starring in the Music Man … Mario Draghi as Professor Harold Hill

January 19, 2017

Oh yes, we got trouble right here in Frankfurt City! It rhymes with T and starts with G and is spelled Germany. Today (and of no genuine market surprise), the ECB made no adjustments to its current QE and negative rate policy. The press conference was where all the potential market moving “tweets” would take place, but Professor Mario Draghi danced around the very fine questions from the European financial cognoscenti. Draghi was sharp as he insisted that “we need lower interest rates to get higher rates.” Also, when one inquisitor asked if the ECB was ready to DO LESS if inflation reached close to the MAGIC 2% level, President Draghi admitted that we only considered doing more QE (never LESS). Thus, the ECB allowed us a look at the asymmetric BIAS of all central banks. The ECB is far more worried about low growth, low inflation that the main concern is always more. And Draghi’s ultimate fallback position for the construction of counterfactual policy formation is the ongoing deleveraging process in Europe.

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