sparky wrote:.
I'm not so sure about the importance of the trade deals ,
they certainly matter but seems to be used as an excuse to move the stock markets
in a time of very low return on money investment , money flow to shares
the returns are slim but better than lending money
so the stock market valuations are just financial refuge for lone desperate trillions of bucks
evilgenius wrote:The general trend, over a temporary move in one direction or another, is what matters. That's precisely why I am worried about the anti-globalization of Trump. Globalization, and the actual US dominance of the result rather than the perceived failure, have caused much of the stock market run up that everybody is pointing to when they cite the markets as proof that everything is well. Will there be a change? Will that change come about because of the perception of failure, or some new position that seeks to curry favor with those who feel that way, but still embraces globalization?
Will we pull back from the world we are on the cusp of achieving? Even slightly altering its approach could be dangerous for the US, as there really is talk of abandoning the dollar as the world's reserve currency https://www.cnbc.com/2019/10/31/de-dollarization-russia-china-eu-are-motivated-to-shift-from-using-usd.html?&qsearchterm=reserve%20currency. That's much easier to do, if other countries perceive that the US no longer takes the stance that open markets are the best thing for it, but, instead, offers some sort of compulsion that incites resentment among even historical allies.
If China wants to pay a $trillion or more annually to do things like police the Middle East -- let them "enjoy" that role of global leader.
rockdoc123 wrote:If China wants to pay a $trillion or more annually to do things like police the Middle East -- let them "enjoy" that role of global leader.
they most certainly will not elect to do that. What I witnessed in Africa over the years was Chinese national companies with zero regard for human rights, the environment or anything else that many believe are essential. As partners, they refused to participate in humanitarian investments, traded weapons for opportunities, blatantly stole technology and were more than willing to put their own people at risk. Maybe they are gradually changing and becoming more "responsible" but I acknowledge their culture is a lot different from our own, very hierarchical. I just can't see them stepping up as World Police unless there was something in it for them (which is a danger in itself).
So the US and Nato can decide to back off all responsibility and then I think it will be every megalomaniac dictator for himself. In keeping with what I think Trump is after which is insular countries and walking away from globalization. Good or bad depending on your perspective I suppose.
Yoshua wrote:"FED'S HARKER SAYS ONE LESSON OF REPO VOLATILITY IS FIVE FINANCIAL INSTITUTIONS OWN ABOUT 80% OF RESERVES AND WERE NOT WILLING TO LEND"
However, markets have treated it to some extent as a “QE4” type of operation.
EdwinSm wrote:From the first link in the above postHowever, markets have treated it to some extent as a “QE4” type of operation.
So here we have a mainstream news conversion that the not-QE is a form of QE.
What I find more disturbing is that a month and a half after the Repo rate spike, the FED still does not believe that the problem is sorted out and that they need to keep intervening in that market to prevent greater problems.
sparky wrote:my favorite is financial end of the world "next quarter" they have been around for decades
of course this could happen ,it's only one of many more probable outcomes
certainly not because the prophet of doom know anything about anything
Revi wrote:The M2 says the Fed issuing a lot of money just in time for X-mas! Thanks Santa!
https://www.silverdoctors.com/headlines ... onth-high/
AirlinePilot wrote:https://www.zerohedge.com/economics/banana-republic-money-debasement-america
Ive been following this for a bit. The repo market is a strange beast, but lately the symptoms point to something or some bank entity in some serious trouble. Its all great until it inst. Wondering right now who or what is needing this kind of coin to stay afloat. Its NOT a good trend.
sparky wrote:.
while I regard the porn doomers with utmost suspicion ,
one cannot but wonder at what exactly is going on behind the greenback curtain
why would the feds intervene if things were rosy ?
for consideration , the house of rep , by a massive majority approved the fiscal 2020 defense policy bill
some kind of zebra bill with plenty of funny appropriation attached to it
it's a budgetary Christmas tree , there is spending for everybody
one would think the budget deficit would be a concern ..but no !
https://www.reuters.com/article/us-usa- ... SKBN1YF2RW
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