Europe

Back in October 2014, just after the BOJ drastically expanded its QE operation, we warned that the biggest risk facing the BOJ (and the ECB, and the Fed, and all other central banks actively soaking up securities from the open market) was a lack of monetizable supply. We cited Takuji Okubo, chief economist at Japan Macro Advisors in Tokyo, who said that at the scale of its current debt monetization, the BOJ could end up owning half of the JGB market by as early as in 2018.

"Europe looks concerning" warns BofAML's Stephen Suttmeier, pointing out, rather ominously that the broad European index - STOXX 600 - is trading like it did in 2001 & 2008.

The STOXX Europe 600 (SXXP) is trending below declining and bearishly positioned 26 and 40-week moving averages. ECB quantitative easing has not reversed this bearish trend.

Submitted by Ron Paul via The Ron Paul Institute for Peace & Proseprity,

On Sunday Ukrainian prime minister Yatsenyuk resigned, just four days after the Dutch voted against Ukraine joining the European Union. Taken together, these two events are clear signals that the US-backed coup in Ukraine has not given that country freedom and democracy. They also suggest a deeper dissatisfaction among Europeans over Washington’s addiction to interventionism.

Roger Cohen on “the Islamic State of Molenbeek,” the Brussels district that is home to Islamic terrorists:

It is hard to resist the symbolism of the Islamic State establishing a base for its murderous designs in the so-called capital of Europe at a time when the European idea is weaker than at any time since the 1950s. A jihadi loves a vacuum, as Syria demonstrates. Belgium as a state, and Belgium as the heart of the European Union are as close to a vacuum as Europe offers these days.

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Submitted by Bill Bonner of Bonner & Partners (annotated by Acting-Man.com's Pater Tenebrarum),

The Hard Rocks of Real Life

The Dow dropped 174 points on Thursday, the biggest fall in six weeks. Not the end of the world. Maybe not even the end of this year’s bounce-back bull run. As you’ll recall, stocks sold off at the beginning of the year, too. Then, investors were buoyed up after central banks got to work – jimmying the credit market on their behalf.