Boockvar: Don’t Expect Rate Cut in October

“When you are cutting interest rates from a very low base, the ability for you to stimulate the economy is very limited”

Map: Which Countries Are the Most Indebted to China

China is now likely owed more than 6% of total global GDP

The absurdity of the West’s accomodative narrative on what’s really going on in China

“Maybe the problem is not the lack of so-called liquidity… Maybe the problem is too many bonds to be financed”

The idea that we were ever going to normalize policy is dead and buried

‘This is the largest year of net errors and omissions in their capital account this decade’

Accommodative monetary policy is not a free lunch. It’s a no-money down, 0% interest rate installment plan on a very, very overpriced lunch.

Despite having significantly lower labor costs than China, India imports more than four times more from China than than it exports

“What will a rate cut do to counter the trade issue? What evidence do we have that anybody is credit constrained?”

Today’s talk of using fiscal stimulus in the US and Europe to supplement the diminishing potency of monetary policy is a dead-end