China

In all the drama surrounding the French elections, few noticed the PBOC's announcement that China’s FX reserves rose for the third straight month in April, increasing by $20.45 billion to $3.03 trillion, more than the $11 billion expected and the single biggest monthly increase in three years going back to April 2014, on the back of a weaker dollar and increasingly more draconian capital controls on outflows.

Authored by Paul Craig Roberts,

“The problem is that the world has listened to Americans for far too bloody long.” - Dr. Julian Osborne, from the 2000 film version of Nevil Shute’s 1957 book, On the Beach

A reader asked why neoconservatives push toward nuclear war when there can be no winners. If all die, what is the point?

The answer is that the neoconservatives believe that the US can win at minimum and perhaps zero damage.

Two weeks ago Bank of America caused a stir when it calculated that central banks (mostly the ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."

Sauron Rules in Washington

Paul Craig Roberts

“The problem is that the world has listened to Americans for far too bloody long.”  — Dr. Julian Osborne, from the 2000 film version of Nevil Shute’s 1957 book, On the Beach 

A reader asked why neoconservatives push toward nuclear war when there can be no winners. If all die, what is the point?

The answer is that the neoconservatives believe that the US can win at minimum and perhaps zero damage.

Submitted by Gordon Johnson of Axiom Capital