Authored by Mike Shedlock via MishTalk.com,
The Phillips Curve, an economic model developed by A. W. Phillips purports that inflation and unemployment have a stable and inverse relationship.
This has been a fundamental guiding economic theory used by the Fed for decades to set interest rates.
A new Fed Study shows the Phillips Curve Doesn’t Work.
If NKorea doesn't launch a rocket tonight, stocks may sell off tomorrow
— zerohedge (@zerohedge) August 29, 2017
Blink and you missed it...
The message from the plunge/panic protection team is clear...
RBOB gasoline closes at a 2-year high (and WTI tested down to a $45 handle) as all attention is focused on the duration and impact of the storm (and how long refineries will be closed). Tonight's API data should not be market-moving since it relates to data from before Harvey but showed a big crude draw and modest (surprising) gasoline build once again.
API
Authored by Kevin Muir via The Macro Tourist blog,
Remember last November when it seemed like everyone was a US dollar bull?
Either they thought Trump would usher in the next Reaganesque US economic free market nirvana, or they were convinced there was this massive US dollar emerging markets short position from the years of USD debt issuance.
Nothing better illustrates the one sided nature of US dollar sentiment than the early December 2016 issue of The Economist.
Hurricane Harvey's historic flooding in Texas is set to wreak havoc on the auto industry and its insurers with analysts now predicting the storm could damage more vehicles than Hurricane Katrina. In August 2005, Katrina wiped out some 500,000-600,000 vehicles but William Armstrong of CL King warns that Houston has about 5x more people than New Orleans did at the time.