Draghi Speaks the Truth; ECB Will ‘Do What it Must’
Words are important. This is not just a headline, it is a reality…
Draghi says ECB will ‘do what it must’ on asset buying to lift inflation
Not ‘do what it thinks would be the best course for the European economy’, not ‘choose the path of least resistance in guiding the financial system to recovery’… the ECB will DO WHAT IT MUST.
As I have written til I’m blue in the face for the last 10 years, we are in the age of ‘Inflation onDemand‘©, 24/7 and 365. “…do what it must”… let that sink in for a moment.
Japan is trying to kill the Yen, China is dropping interest rates and the world over we have a rolling inflationary operation that is little more than a game of Whack-a-Mole. BoJ popped up a couple weeks ago and now this one… (more…)
I saw this on the front page of the esteemed Palo Alto Daily Post this morning:
This is a riot: watch the gubernatorial debate in Florida as the two candidates have a pissing match over………….a fan. One of the candidates wanted a fan for a little bit of cooling, and the other guy insisted it was against the rules of the debate (in point of fact, the rules forbid “electronics” like, oh, say, having a personal computer or iPhone during the debate, which makes sense – – – most folks agree a small electric fan does not qualify as “electronics”). Pull up a chair, grab a Coke and popcorn, and enjoy:
Courtesy of the SlealthFlation Blog:
Like many of our readers, I clearly have a very hard time reconciling a U.S. stock market making new all-time-highs almost daily, especially in the face of what most economists consider to be a relatively weak domestic economy with negligible growth prospects. Moreover, when you layover the thoroughly stalled and certainly weaker overall global economic picture with the largest economic bloc on the planet in a near depression, it’s even harder to rationalize. Finally, throw into the mix the gravity of threatening geopolitical tensions between the U.S. and Russia, the two nations with the largest stockpiles of tactical nuclear weapons on earth, as well as the completely disintegrating Middle East mayhem, and the market actually welcomes it? Something majorly does not add up, well, to this idiot anyways. (more…)
Exports, Imports, and Balance: What International Trade Tells Investors About The U.S. Economy
At 8:30 EST/12:30 GMT The Bureau of Economic Analysis released their monthly report on U.S. exports, imports, and balance of goods and services for June 2014.
The BEA economic report release calendar is here:
Goto the “U.S. International Trade in Goods and Services, June 2014” here:
Once again we are breaking records on a near weekly basis. Week after week and sometimes daily new never before seen in the history of financial markets record prints. Yet, business people across the spectrum don’t feel it, nor are they buying it.
Should one be worried about this conundrum? Financial mavens say no. In earnest, most seem to insinuate one should “Just buy the all time highs and sleep like a baby.” Then again, that’s what they say all the time do they not?
So what is someone to do that doesn’t believe the hype or the meme “it’s different this time” and can’t get that feeling out of their gut for they know – it truly never is? (more…)