Authored by Kevin Muir via The Macro Tourist blog,
The Eurostoxx outperformance of the past month has garnered a lot of attention, but there is another similar trade many investors are missing. Not only that, but it has a positive carry, something that is sorely lacking in this day and age of NIRP.
Since early April, the German Bund / US T-note 10 year yield spread has rallied 35 basis points, rising from negative 220 bps to 185 bps.
Billionaire investor Asher Edelman strayed into what must’ve been uncomfortable territory for CNBC during an appearance on “Smart Money” when he discussed his view that the government’s “plunge protection team" the only thing propping up the current market raly. and said he suspects that it has recently been intervening in the market to keep stocks high.
Is the plunge protection at work? Legendary investor @AsherEdelman lays out the conspiracy pic.twitter.com/A3h7QyV1EC
Authored by Chris Hamilton via Econimica blog,
Since 1971, and the disconnection of the dollar from a finite gold backing, the value of money (the dollar) has been determined by it's purchasing power versus the inflation of the assets to be purchased. Thus printing more money has not necessarily created "wealth" if the assets to be purchased are rising as fast or faster than the purchasing power of the "money". The Fed touts it's dual mandate of full employment and stable prices...but the result in prices; not so stable.
Senate Democrats in Illinois, with a final vote of 32-26, have just passed a new budget proposal that includes a massive personal and corporate income tax hike and an expansion of the state's sales tax, after saying they are no longer willing to wait for a broader deal with Republicans.
Via The Ron Paul Liberty Report,
Presidential budgets are pure hocus-pocus.
Government has teams of "economists" who, instead of pointing out that economic laws cannot be violated, concoct formulas that seek to justify government expansion.
That's really the only thing that bureaucrats care about ... expansion. The "economists" come up with the justifications, and thus get to keep their plush jobs of exonerating the state.