Submitted by Paul Bordsky via Macro-Allocation.com,
It seems monetary policy is exhausted and the next exogenous lever to pull would be political fiscal initiatives. If/when they fail to stimulate demand, there would be only one avenue left – currency devaluation. If/when confidence in the mightiest currency wanes, we would expect the US dollar to be devalued too - not against other fiat currencies, but against a relatively scarce Fed asset.
Seriously Squirrely
Submitted by Lance Roberts via RealInvestmentAdvice.com,
RALLY FAILS, ALERTS RISE
Last week, I discussed the boost the market received as the BOJ made an unexpected move into negative interest rate territory combined with end of the month buying by portfolio managers. To wit:
Almost one year ago, in March 2015, we explained how "The Fed's Artificial Steepening Of The Yield Curve" has resulted in many unexpected consequences, the most important of which has been the erroneous interpretation of the yield curve as a leading recessionary signal. As said back then, "the artificially steep yield curve is a reflection of policy intent not economic reality....
By EconMatters
We are near the low in bond yields for the year, and with the global markets selling off but the employment numbers holding in there, we have a real conundrum for bond investors.
https://www.youtube.com/watch?v=WlE54fg0WtA
© EconMatters All Rights Reserved | Facebook | Twitter | YouTube | Email Digest | Kindle
Iran enjoys trolling the United States. In fact, it’s something of hobby for the Ayatollah, who has maintained the country’s semi-official “death to America” slogan even as President Rouhani plays good cop with Obama and Kerry.