Rate cuts are coming, and in light of the world war, which is not televised, those rate cuts are likely to be aggressive. Central bank liquidity cycle troughed in 2024, at the beginning of a super war cycle is probably no coincidence. NATO’s plan to create land corridors intended to accelerate the movement of US troops, half a million troops, and equipment across Europe into the East front will likely escalate Europe’s...
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If the direction of central bank liquidity influences asset prices, then it is central bank liquidity that also determines when cash is king and when cash is trash. Famous billionaire hedge fund investor Ray Dalio often refers to cash as trash, but cash can also be king. How often have you heard people lamenting being unable to participate in the bargains because they have no surplus spending money? So when money is tight, bargains...
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The central banks pandemic response to the great lockdowns of 2020 was a lot more of the same, massive liquidity creation to finance a multi-trillion dollar asset-purchase program, known as quantitative easing QE. A coordinated global monetary policy is now underway with post-pandemic QE to infinity being the central banks pandemic response QE max is being deployed in cahoots with the world central banks to fend off a multiple asset...
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Unwinding the everything bubble began in the final quarter of 2018 and it is likely to be a big story in 2019. The central bank’s bubble of everything was financially engineered with nearly a decade of experimental monetary policy. Through a policy known as quantitative easing QE, the major central banks purchased approximately 15 trillion dollars of assets in the market to create the so-called “wealth effect”. The idea, albeit...
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Perhaps financial markets are on the central bank’s rate lift-off launch pad, if so buckle up. Stayed tuned to this weeks storm of news as July slips away and we enter August. The central bank’s rate lift-off could make next week’s mainstream headlines A melting pot of central bankers from the US, Japan, the UK, Brazil, and India all meet to set their respective monetary policy. Such as an eclectic mix of central...
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