Authored by John Curran via Barrons,
The petrodollar system is being undermined by exponential growth in technology and shifting geopolitics. What comes next is a paradigm shift...
Authored by David Stockman via The Daily Reckoning,
There’s not many tears being shed over Steve Bannon’s departure. His ethno-nationalist and protectionist worldview are opposite to true notions of liberty, free markets and a minimalist state.
During his January 2014 State of the Union address Obama announced the creation of a new financial product that would allow American workers, those without access to retirement accounts anyway, to directly participate in the U.S. Treasury's debt ponzi on a tax-deferred basis. The accounts were cleverly named MyRA and were intended to be a substitute for people who didn't have access to an employee-sponsored 401k...with one little catch...money deposited in the accounts could only be invested in U.S. government bonds. Here's an excerpt from Obama's speech at the time:
Via Global Macro Monitor,
The yield curve is flattening like a pancake.
Tightening cycles tend to do that.
Furthermore, the effective float of 10-year and longer U.S. notes and bonds is relatively small and greatly distorts the bond market signal. We have written about this several times.
With traders realizing that the "Thursday Turmoil Trifecta" looms, world stocks dropped and safe-haven assets rose as investors focused on the growing tension in the Middle East, while caution spread across markets in a week full of risk events including James Comey’s congressional testimony to the ECB’s policy meeting and Britain’s increasingly uncertain election, all in the span of 24 hours. As a result, European and Asian stocks as well as S&P futures all fell, while gold, yen and Treasuries gained.