Submitted by Pater Tenebrarum via Acting-Man.com,
Reader Questions on Negative Interest Rates
Our reader L from Mumbai has mailed us a number of questions about the negative interest rate regime and its possible consequences. Since these questions are probably of general interest, we have decided to reply to them in this post.
The NIRP club – negative central bank deposit rates – click to enlarge.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
"Off the lows"...
So this just happened...
But it doesn't really matter when all it takes is a phone call...
Post-Payrolls, stocks faded until the US open, and then took off...
When looking back in history, December 23, 2015 may be the date the global trade wars officially began. On that day, as we reported at the time, the U.S. imposed a 256% tariff on Chinese steel imports.
It did so perhaps with good reason: with its local end markets mothballed, China was desperate to dump as much excess capacity as possible offshore with shipments of steel, oil products and aluminum all reaching new highs according to trade data from the General Administration of Customs, and the result was a dramatic drop in US prices.
The most important aspect of the US economy - consumption - appears to face a headwind as despite "awesome" jobs data, exuberant Manufacturing surveys, and talking heads fighting each other to come up with the most superlative superlatives for the US economy, UMIch exposes the fact that income growth expectations for Americans (the ones that are throwing their support behind Trump and Sanders) continues to slide.
All that post-QE3 "hope" is gone...
And Year-over-year shows no rebound here...
h/t @DougTee