Category Archives: Euro

Merkel Retains Power, Far Right Moves To Bundestag

Just when you thought eMac – Emmual Macron –  had stamped out right-wing populism in Europe, here come the Germans.   The country’s two leading political parties,  the Christian Democrats (CDU/CSU – “The Union) and the Social Democrats (SPD),  who are … Continue reading

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FOMC: A Big Double Cheese Non-Burger

Monetary policy history made today. The  Federal Open Market Committee (FOMC)  confirmed it would begin its long-awaited quantitative tightening (QT). In October, the Committee will initiate the balance sheet normalization program described in the June 2017 Addendum to the Committee’s … Continue reading

Posted in China, Euro, Eurozone Sovereign Spreads, Fed, German Bund, Monetary Policy, Sovereign Debt | Tagged , | 2 Comments

Fed Day With Extremely Loose Financial Conditions

Today is the day,  folks. The consensus is the Fed announces the start of quantitative tightening (QT).   History in the making. Draining Liquidity Though monetary tightening officially began in December 2015,  this will be the first time the Fed drains … Continue reading

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Super Mario’s Problem In One Picture

File under “Kafkaesque Markets.” Source:  MacroTourist

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The Bonds With A Draghi Tattoo

On Tuesday,  June 27th,  Super Mario said this, “Deflationary forces have been replaced by reflationary ones.”  – Mario Draghi And here is how global 10-year bond yields reacted, The German 10-year Bund yield increased 77 percent — OK, from a … Continue reading

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QOTD: Super Mario Speaks

“Deflationary forces have been replaced by reflationary ones.”  – Mario Draghi

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QOTD 2.0: More Inflation Cometh

The question is:  Has the aircraft carrier of rising global inflation finally left port? Big fiscal stimulus planned in U.S. with labor shortages.  Hmm….  And tariffs on imports increasing. Even China has reversed its deflationary forces. You know when aircraft … Continue reading

Posted in Euro, Fiscal Cliff Monitor, Inflation/Deflation, Uncategorized, US Releases | Tagged , | 2 Comments

Sovereign Risk and Debt Crises

We received some interesting pushback on our recent post, Is the U.S. Government Bankrupt?  Not Even Close. The purpose of the post was to remind readers to not ignore the left side of a government’s balance sheet — assets —  … Continue reading

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French Oat-German Bund 10-year Spread

Notice on the chart the Oat-Bund spread coming in 25 bps in past week.  We are buyers of a French dip.  See here and here. An apparent threat by far-right leader Marine le Pen to punish state employees who “persecute” … Continue reading

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Trump & Le Pen compared in 90 seconds – FT

Gideon Rachman, the FT’s chief foreign affairs commentator, compares the movements behind US president Donald Trump and French presidential candidate Marine Le Pen – in 90 seconds. ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs  

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