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Tag Archives: COVID

Greenback Shows Some Resilency after Follow-Through Selling Dried up

Overview: Follow-through dollar selling stalled as key levels were approached, including $1.19 in the euro, $1.3900 in sterling, $0.7600 in the Australian dollar, and CAD1.2300. Sentiment is mixed after the greenback sold-off before last weekend despite the fastest jobs growth in 10-months.  Emerging market currencies are mixed, with the JP Morgan Emerging Market Currency Index slipping slightly.  The 10-year US Treasury yield is flat near 1.42%, while European yields are 2-3 bp softer. ...

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The Greenback is Firm into Quarter-End

Overview: The dollar is finishing the quarter on firm footing, gaining against most of the major currencies today.  The euro is straddling the $1.1900 area, having begun the month above $1.22.  Sterling has tested the $1.38 area.  It had traded at a three-year high near $1.4250 at the start of the month.  Similarly, the US dollar set a seven-year high near CAD1.20 on June 1 and is now trying to get a foothold above CAD1.24.  Emerging market currencies are mixed today, but the JP Morgan...

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U.S. Approaches Adult Herd Immunity

I am asking GMM readers to send thoughts, prayers, postive energy or whatever you got to our beloved Carol K., GMM’s Chief Money Printer, as she battles a serious illness in Boston.  She’s the best, we’re hoping for the best, and she deserves the best.  Godspeed, CK.  Great chart from our friends at Strategas, one of the best research shops on the Street.  It looks fairly clear, at least to us, the U.S. has put the pandemic in the rear view mirror and is now ready to fully reopen...

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Three Things About Today’s UST Sell-off, Beginning With Fedwire

Three relatively quick observations surrounding today’s UST selloff.1. The intensity. Reflation is the underlying short run basis, but there is ample reason to suspect quite a bit more than that alone given the unexpected interruption in Fedwire yesterday.At 12:43pm EST, most of FRBNY’s electronic services experienced an as-yet unexplained problem which interrupted service, including that of Fedwire. To this point, the New York branch has only confirmed the disruption – lasting several...

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Reflation Patients, ‘Another’ Six Months

The idea behind post-Georgia reflation is that globally fiscal-led “stimulus” will be enough to fix what’s still wrong. The economy broke down, by choice, last year but with sufficient zeroes behind governments spending around the world, from DC to Brussels and a bunch in between, whatever costs and consequences remaining due from 2020 aren’t going to be unmanageable for 2021. There’ll be some pain, a little, not much worth getting worried about. That’s the latest reflation narrative.The...

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Super More Perfectly

Mario Draghi is back to save Italy by now running it. Like Janet Yellen resurfacing at the US Treasury, these people are thought of in the most positive terms simply because the public remains blissfully unaware of basic data. Not without good reason; the public had for decades come to count on central bankers (for all anyone knew) to keep the world on track and therefore people generally believe what central bankers tell them.And monetary policy independence has meant that officials get to...

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3/2/21: The Cost of Trump’s Failures to Act on Covid19: Case of Housing Market Interventions

COVID-19 pandemic has been associated with a range of deep and dramatic policy interventions, including rolling lockdowns, monetary and fiscal policies interventions, wide ranges of subsidies and supports, but also measures relating to addressing the risk to households and companies arising from the pre-pandemic financial commitments. One of the most, potentially, impactful measures has been adoption of a range of policy interventions that aimed to reduce the impact of income shocks on...

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The Real Pro-Lifers versus The Seniciders

I spy the real Pro-Lifer.  Can you? The ignoramuses are, in effect, engaging in a form of senicide whether they know it or not. Modern Senicide in the Face of a Pandemic Senicide is the killing of older persons, or their abandonment to death. The practice of senicide existed in many cultures. Senicide is an extreme form of ageism, defined as stereotypes, prejudice, and discrimination against older adults (Ayalon & Tesch-Römer, 2018). Ageism can be positive and negative, but...

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Stocks On A Long Monetary Leash

M2 Money Stock – Weekly % Year-on-Year Change  Stunning to see the weekly monetary aggregates (M2) continue to grow at an unprecedented 25 percent year-on-year rate.  Not so stunning to see the stock market mania being led and fueled by the money supply growth. Yet, it is stunning, actually frightening, to see stocks need the 25 percent money growth to sustain its momentum. This is unprecedented and unsustainable as inflationary pressures are and will surely continue to build even in...

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