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Old 09-15-2019, 04:48 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,853
ECB sinking beneath the waves

Americans can't very well take a big rise in the price of energy.
9/15 Drone strikes shut down half of Saudi Arabia oil production – Mish
9/15 Cheaper gas puts a cap on consumer prices in August, but inflation rising – MW

Russian State debt is now zero.
"In 2017, total global debt reached an all-time high of $184 trillion (225 percent of global GDP) or, in per capita terms, $86,000 of debt per person on the planet. The top three borrowers in the world - the U.S. (256 percent of GDP), China (254 percent of GDP), and Japan (395 percent of GDP) "
“This leads to a unique situation which points to a high credit worth of Russian bonds, "
Russian bonds will be the only ones to survive the default cascade.

Draghi from the ECB is a Goldman Sachs guy.
"And nowhere was this mood represented better than by Germany's most popular tabloid, Bild, which on Friday accused Draghi of "sucking dry" the bank accounts of Germany’s savers, a day after the ECB cut interest rates deeper into negative territory. Next to a Dracula photomontage of Draghi, Bild’s headline read: “Count Draghila is sucking our accounts dry.”
"Handelsblatt, in an article titled "The dangerous game with the money of the German savers",
"That said, there were some complications when Bloomberg reported that Europe's top central bankers - the French, German and Dutch governors - all opposed more QE, as did Coeure and Lautenschlaeger "
But, but, we have to save the banks.

"So just how easy will it be for the ECB - and its new head Christine Lagarde - to force Europe into taking the politically unpopular move of issuing (much) more debt (even with the ECB's MMT-esque guarantee to monetize it) to support the economy."
It supports the bans only, not the economy
The ECB can print up lots of liquidity but, there is another problem.
ECB is running out of debt to buy – more smoke and mirrors ...
What If the ECB Runs Out of Bonds to Buy?

Remember that Draghi is an ITALIAN and a Gold Man Sachs alumni. That makes him doubly irresponsible.

"And while the Treasury has taken its time in rebuilding the cash over the past month, with the latest Treasury cash balance just $184BN as of Sept 11, it only means the ramp up in the coming weeks will be that much more acute. So acute in fact, that as BofA rates strategist Mark Cabana writes today, "the USD funding storm has been brewing for months and is likely to make landfall in Q4."
"Why does this matter? Since the Fed does not know the minimum quantity of reserves needed in the banking system and it desires to hold "no more securities than necessary" for the efficient implementation of monetary policy, BofA believes that the Fed will likely want to test how low reserves can fall before intervening in funding markets. "This runs the risk of a temporary overshoot on the extent of money market tightness as the Fed plumbs how low reserves can fall before it ultimately needs to start growing its balance sheet."
A game of "chicken" with Trump

Interesting article on fiat currencies.
9/15 We’re bankrupt. Isn’t that worthy of presidential discussion? – FEE
Don't ask, don't tell.
9/15 Cheney, Paul duke out foreign policy split in Trump’s GOP – JH News
Why isn't Cheney's head on a pike somewhere?
9/14 Nuclear war with Russia winnable said Trump’s new National Security Adviser – Mish
Why isn't HIS head on a platter somewhere?
9/15 US war hawk nut case Senator Graham responds to Saudi refinery attack – Mish
OBVIOUSLY , Iran did it.

Zero Hedge with a twist of Douglas Adams writes about economic conditions.
"I look at markets right now and hold my temples, groaning. It as if we have all been drinking what the Hitchhikers’ Guide to the Galaxy calls “the best drink in existence”--Pan-Galactic Gargle Blasters--the effects of which are similar “to having your brains smashed out by a slice of lemon wrapped around a large gold brick.” "
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