Three Reasons To Be Worried About The Economy
Submitted by Yonathan Amselem via The Mises Institute,
Submitted by Yonathan Amselem via The Mises Institute,
With China celebrating the Lunar New Year and offline until next weekend, and with the US in the usual post-payrolls macro newsflow lull, the markets will have more than enough time to stew in the latest source of contagion fears, namely Europe, the same Europe which until recently was fixed but is broken all over again. The highlight of the week will be Janet Yellen's semi-annual testimony to Congress where she is expected to confirm she is trapped: either push the market even lower by sounding hawkish, or admit the US is on the verge of a recession and admit policy error.
Privatization Is the Atlanticist Strategy to Attack Russia
The biggest event of the weekend, if not the month, was China's FX reserve outflow update, which at $100BN was slightly better than the $120BN expected (it pushed China's reserves to the lowest in nearly 4 years) but it was in the "no man's land" between the BofA best case scenario ($37.5BN), and the GS worst case ($197BN).
Last week the Saudis said they would send ground forces to fight in Syria, but only on condition that they would be joining a U.S. invasion force. While the Saudi proposal is a non-starter here in the U.S., they wouldn’t be able to fulfill their end of the bargain anyway: