Every avalanche always starts with that last small drop of a snowflake that makes the whole pack of snow too heavy to stick on the mountain. Since the #FED and fellow Central Banks joined the BOJ in the great money-printing crusade to “save the world” from COVID-19 in March 2020,…
Category:Macro
HOW ARE FINANCIAL MARKETS GOING TO REACT IF JOE BIDEN ENDS UP DROPPING OUT OF THE PRESIDENTIAL RACE?
The current market structure, though robust on the surface, maybe one of the most fragile in history. On one side, you have investors, both retail and professional, who tend to #FOMO into anything that rises (although professional investors call that the “momentum” strategy). On the other side, you have algorithms…
A PEEK INTO THE FUTURE: USD/JPY ROAD TO 300
Three months ago, in “Why a Historical $JPY Currency Crisis Is at the Doorstep of Japan”, we discussed the precarious state of the Japanese yen (#JPY). Considering the volume of JPY printed, the size of Japan’s economy, and its foreign reserves, the yen should have been trading at 298 against…
MARKETS WILL QUICKLY STOP FEARING THE RISK OF “POLITICAL CHAOS” IN FRANCE
Emmanuel Macron’s decision to call snap elections in France after the disastrous results of his party in the latest European elections not only caught his fellow European leaders completely by surprise but also caught the ECB completely unprepared to deal with last week’s panic in French financial markets. Beware, financial…
THE PROOF THAT THE US BLS IS MAKING UP NUMBERS OUT OF THIN AIR
By now we know that US BLS data are totally unrealistic for anyone who lives in the real world. My goal in this article is to demonstrate how, after 2020, the BLS has been literally making up numbers that go against any law of statistics. First of all, let’s start…
HOW LOW WILL THE EUR SINK THIS TIME?
Last week, the European Central Bank (#ECB) didn’t make a policy mistake. As we discussed in “AFTER JAPAN, NOW IT’S EUROPE’S TURN TO SACRIFICE ITSELF TO KEEP THE US MARKET BUBBLE ALIVE UNTIL THE ELECTIONS”, they simply acted to serve the US Federal Reserve (#FED) interests. The market now expects…
MEANWHILE STOCKS ENJOY THE HEAVENS, BANKS ARE GOING THROUGH HELL
It’s been some time since I first rang the alarm bell about the crisis unfolding in the Commercial Real Estate sector (#CRE) in the US. Banks’ risk departments were largely ignoring this crisis, an issue I highlighted in my previous post, ”The great paradox of CRE lending: while owners are…
HOW TO TAKE ADVANTAGE OF DUMB (CENTRAL BANKS) AND DUMBER (GOVERNMENTS)
Have you ever watched the movie “Dumb and Dumber”? If you have not, you should. If that’s not your genre, at least do me a favor and watch this 41-second video clip here before reading this article. “That’s as good as money sir, those are IOUs”, isn’t this sentence striking…
AFTER JAPAN, NOW IT’S EUROPE’S TURN TO SACRIFICE ITSELF TO KEEP THE US MARKET BUBBLE ALIVE UNTIL THE ELECTIONS
At the European Central Bank (#ECB), they are so adamant about cutting rates lately that they are barely sparing a single day to remind markets about it (The time is ripe to cut interest rates next week, European Central Bank’s Rehn says). But, why such a rush when, even according…
IS THIS HOW BANKS ARE CONCEALING THEIR LOSSES ON SILVER SHORT POSITIONS?
Silver is garnering attention lately, with its price movements suggesting the onset of a short squeeze. Silver is no stranger to dramatic short squeezes. The most notorious silver short squeeze took place in the late 1970s and early 1980s, executed by Nelson Bunker Hunt and William Herbert Hunt. These sons…