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:
Another year, another record number of Americans willing to not only pay the $2,350 fee, but also appear in the US Treasury's "name of shame" list published every, quarter which reveals all the now-former US citizens who have decided to hand over their US passport back to Uncle Sam and expatriate.
Following hot on the heels of Saudi Arabia and Bahrain, The United Arab Emirates (UAE) said that it was also ready to send ground troops to Syria to fight ISIS Syria’s Foreign Minister said earlier that any ground operation in Syria, carried out without consent from Damascus, would be viewed as an act of aggression, warning that any potential aggressors would return to their country in a wooden coffin RT reports: The UAE’s preparedness to participate in a ground military operation in Syria was confirmed by Minister of State for Foreign Affairs Anwar Gargash, who said that “US leadership on
Submitted by Paul Bordsky via Macro-Allocation.com,
It seems monetary policy is exhausted and the next exogenous lever to pull would be political fiscal initiatives. If/when they fail to stimulate demand, there would be only one avenue left – currency devaluation. If/when confidence in the mightiest currency wanes, we would expect the US dollar to be devalued too - not against other fiat currencies, but against a relatively scarce Fed asset.
Seriously Squirrely