Italy: Why Fiscal Discipline Eventually Matters
Fiscal stimulus, much like monetary stimulus, is only really effective when it is counter-cyclical
Luke Gromen: Inflation Is the Only Way to ‘Fix’ Sovereign Debt Crisis
“The last time the world was moving towards a recession with advanced economy soveriegn debt levels as a percent of GDP as high as they are today was about 100 years ago”
Map: The History of Coins & Currency – 1500 to 2019 AD
The Rise of the Dollar
Image of the Day: The Appleton
Circa 1900
James Athey: Market Knows It Can Influence Fed Policy
“The circularity of it is quite obvious and clear”
Map: The Global Easing Cycle Has Started
The great race to the bottom
Jim Bianco: 44% of Developed Market Non-US Bonds Are Negative Yielding
“Every time something bad happens and we don’t really fix it, it ends up stockpiling more in negative debt”
Kyle Bass: China Isn’t Weakening Its Currency, It’s Just Not Supporting It
“Look at the Chinese banks’ balance sheets in the last 12 months. They’ve inverted from being massively USD heavy to massively USD short”
FX Hedging: Yield Curve Doesn’t Just Predict Recessions, It Helps Cause Them
When the yield curve inverts and effective yields for foreign investors become negative, global capital flows start freezing up
In Brief: $100 Bills Outnumber $1 Bills for First Time
With 13.4 billion notes in circulation ($1.34 trillion worth), the $100 bill is now the most popular bill in the world.