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US Pending Home Sales Tumble For 5th Straight Month As Rates Soar, Mortgage Apps PlungeApr 27, 2022 - 08:12:01 PDT
After the unexpectedly large drops in new- and existing-home-sales, analysts expected pending home sales to also fall in March (though only modestly) and they did, dropping 1.2% MoM (worse than the 1.0% drop expected) leaving pending home sales down 8.9% YoY...
Over the last couple of months, since Russia has invaded Ukraine and appears to be attempting to start a new global economic system with China, one would expect that our leaders would see the same things that we do: that as long as you have a country replete with productive capacity, another major country it can sell to and commodities it can use to back its currency, you don’t need the U.S. dollar.
Apr 27, 2022 - 06:14:38 PDT
Don't call it a comeback. Call it a greenback. Russia's expanding quagmire of a war in Ukraine and the imposition of sanctions on Russia have led global skeptics of the American dollar to call for an end to its status as the world's reserve currency of choice. The greenback responded by hitting a two-year peak this week.
China’s Central Bank Steps In To Slow Its Rapidly Weakening Currency, As Yuan Hits One-Year LowsApr 27, 2022 - 06:06:48 PDT
The Chinese yuan traded a touch stronger against the U.S. dollar Tuesday, reversing a sharp weakening trend after the PBOC signaled support for its currency.
As John Authers notes, the yuan is once again plunging, partly because China is once again deliberately slowing its own economy at the same time the Federal Reserve is getting ready to raise interest rates, a thing that makes the dollar more valuable. In 2015 Beijing was trying to pop property bubbles. In 2022 it’s trying to pop Covid’s bubble with mass lockdowns. The resulting downturn will have global repercussions...
Apr 27, 2022 - 05:55:56 PDT
The Chinese People's Liberation Army (PLA) Eastern Theater Command announced on Wednesday that its forces shadowed a US destroyer when the latter made a transit through the Taiwan Straits on Tuesday, slamming the US move as a provocation that intentionally sabotaged peace and stability in the region.
'NATO Expansion' In Reality Means Placing Territories Under US Command: LavrovApr 27, 2022 - 05:54:14 PDT
Russian Foreign Minister Sergey Lavrov has charged that 'NATO expansion' in reality means that the United States wants to bring more territories under its command, with an eye towards bolstering its power in maintaining a unipolar world.
Four European gas buyers have already paid for supplies in rubles as President Vladimir Putin demanded, according to a person close to Russian gas giant Gazprom PJSC
China’s President Xi Jinping made a bold commitment to boost infrastructure construction in Beijing’s latest bid to rescue economic growth, a strategy that may prove less effective this time around as authorities take a hardline approach to bringing Covid outbreaks under control.
Ultimately, the figures are backward looking. How the economy weathers persistent inflation, dwindling fiscal support, rapid interest rate hikes and any potential shocks in the year ahead is far from certain. The Fed has a tough task ahead
The combination of higher inflation and higher rates has caught up with bank stocks, now on course for their worst monthly performance in more than two years.
Bill Smead, chief investment officer at Smead Capital Management, compared the present bout of persistently high inflation to that of the 1970s. In both cases, the government was providing massive amounts of liquidity through spending, which the Fed facilitated with low rates.
Apr 27, 2022 - 05:35:04 PDT
Thanks to The Federal Reserve helping to raise mortgage rates through the roof, mortgage applications are going down. From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey. Mortg…
According to the seasonally adjusted data, M2 expanded by $59B in March. While the money supply is expanding, this is the slowest increase since June of 2021. It’s also almost $200B less than the $238B expansion last March.
Mostly we get lies, spin and obfuscation from central bankers, politicians and bureaucrats. But every once in a while, one of these people accidentally wanders into the truth.IMF Director Kristalina Georgieva did just that during a recent panel discussion hosted by CNBC. She conceded that central banks globally "printed too much money and didn't think of unintended consequences."
The Fed insists it can tighten monetary policy and tackle inflation without hurting the economy. Federal Reserve Chairman Jerome Powell and other central bankers claim the economy is strong enough to handle higher interest rates. Peter Schiff said this is just another in a long line of arrogant miscalculations by the Fed.
That’s because gold buyers piling into exchange-traded funds (ETFs) are taking a pessimistic view of the U.S. Federal Reserve’s ability to cool decades-high inflation without hurting the economy.
The silver market experienced a deficit of 51.8 million ounces, according to the World Silver Survey, the biggest since 2010.
Japan To Spend Billions To "Ease Inflationary Pain" Caused By Spending BillionsApr 26, 2022 - 13:01:17 PDT
How stupid are today's monetary and fiscal policies (and not just the batshit insanity that is Helicopter money, a/k/a MMT?) So stupid that in Japan, the government is about to spend billions to "ease inflation pain" that is the result of... spending billions.
The bull market in bonds is set to return with a vengeance as the Fed hikes rates to the point that something breaks in the credit markets.