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Old 01-08-2019, 04:52 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,281
Trump stabs the dragon,,,.IMF warning,,,bigger bumps in the finance road

Trump ain't taking any prisoners.
“Capital inflows, especially those into the bond market, will be very crucial for China’s balance of payments,"
"World Bank President Kim Unexpectedly Resigns"
"Kim began his second five-year term at the bank on July 1, 2017, after convincing the lender’s board of directors to reappoint him.

In the past year, the Trump administration has put pressure on the World Bank to justify its lending practices, including loans to China"
So, it looks like Trump has ousted the president of the World Bank to keep it from rescuing Chinese bond markets.
1/07 Looser China drops hints of trade pain ahead – Breaking News

"In the starkest warning yet about the upcoming global recession, which some believe will hit in late 2019 or 2020 at the latest, the IMF warned that the leaders of the world’s largest countries are "dangerously unprepared" for the consequences of a serious global slowdown. The IMF's chief concern: much of the ammunition to fight a slowdown has been exhausted and governments will find it hard to use fiscal or monetary measures to offset the next recession, while the system of cross-border support mechanisms — such as central bank swap lines — has been undermined,"
Donald Trump: 'I don't care about Europe
Read between the lines and you get; European banks won't get liquidity from the FED when the ECB collapses. No more swap lines because nobody wants the Euro currency.
Making America great, one bloodbath at a time.

"For reference: The 2008 financial crisis reversed more than 100% of the advance from the 2002 lows to the 2007 highs. So if anyone thinks such a move is impossible, it indeed is the historic reversal record of the last 2 bubbles.

Except this time central banks have much less ammunition 😳."
" Indeed we saw record redemptions in December following record passive ETF inflows in the early half of 2018."
"Note this correction was no ordinary correction, in fact it was extraordinary "
"These reconnects look much better now but still haven’t fully reconnected yet and hence the potential for a retest of December lows with a new low is a very probable scenario at some point in 2019."
"A horrific outcome for market participants would be if even a positive resolution to trade wars cannot change the structural business cycle realities and a global recession ensues as evidenced by slowing production, revenues and earnings."
Not one mention of wages.
"And then all of us would be confronted with the scariest unknown monster of all: A coming downturn with central banks never having normalized policy and a lot less ammunition in their coffer compared to previous downturns."
It is ALL about the finance sector. Consumption doesn't matter.

"The energy sector was at or near the bottom of the S&P 500 for the second year in a row, Sanzillo pointed out. And that was true even within segments of the oil and gas industry. For instance, companies specializing in hydraulic fracturing fell by 30 percent, while oil and gas supply companies lost 40 percent. "
"Oil demand growth is flat in developed countries"
So, demand and consumption do eventually matter.

1/07 Average UK household debt now stands at record £15,400 – Guardian
1/07 Theresa May pleads for EU to give ground and rescue Brexit deal – Guardian
EC Rules Out Brexit Renegotiation - Will Continue Implementing No-Deal Plan
This is head bashing at it's finest,,,, just to see whose head can take the most bashing.

Last edited by Danny B; 01-08-2019 at 03:07 PM. Reason: speleng
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