Continue reading Monetary Stimulus Does Not Work. The Evidence Is In
Jackson Hole is not going to rescue the bad decisions of investors and politicians from other countries because everyone in the Federal Reserve knows they have something more important to do.
If we analyze the consensus expectations of analysts and investment banks at the end of 2017, the conclusion was unanimous: Buy Europe and emerging against the United States amid weakening US dollar estimates in 2018. And it has been exactly the opposite. We already warned a few times about the risk of such a biased consensus towards a weak US dollar. Continue reading Jackson Hole and the Risk of Inaction
Greece has exited bailout territory and the European Union is making a strong case of the success of the program. Continue reading Greece’s Problems Are Far From Over
It was the 27th of May, 2019, when Guo Shuqing, head of China’s banking and insurance regulator, said in a speech that speculators “shorting the yuan will inevitably suffer from a huge loss.”
On the night of the 4th of August, the People’s Bank Of China gave the green light to the third directed devaluation in the past five years. The onshore yuan finished the domestic session at 7.03 per dollar, its weakest level since March 2008, according to Reuters.
I find it amusing to read some analysts stating that the Chinese government’s stealth yuan devaluation has offset the impact of tariffs or will improve the economy.
Continue reading China. Why we should be even more worried after the devaluation