Via Constantin Gurdgiev's True Economics blog,
Here's a neat summary chart based on data from BIS through June 2015, covering total global credit (debt) outstanding (excluding IMF debt), issued in three main currencies:
That savage deleveraging... it has been truly epically... unnoticeable...
Crude carnage continues and despite the best efforts of the USDJPY pumpers, US equity markets are tumbling along with oil (and copper)...
Remember when China was "fixed" overnight?
Yeah - no!
Stocks will likely rally this week for the simple reason that it is options expiration week.
The Fed almost always gives Wall Street extra money to play around with during options expiration.
· On average the Fed expands its balance sheet by $9.1 billion during options expiration weeks.
· During non-options expiration weeks, the Fed contracts its balance sheet by an average of $2.5 billion.
Below is a table of the changes in the Fed’s balance sheet. Options expiration weeks are gray.
One month ago, when looking at the latest Bank of America credit and debit card spending data, we presented something that the retailers knew all too well: US retail spending was plunging:
Having told banks and investors "don't panic" in September, amid spiking interbank lending rates and surging default/devaluation risks, it appears the massive shortage of dollars that we warned about in December has washed tsunami-like ashore in oil-producing Nigeria. Following the Central bank's decision this week to halt dollar sales to non-bank FX market operators, black market exchange rates spiked to 282/USD (vs 199 official) and CDS spiked to record highs implying drastic devaluations loom.