Apparently we are due for some excitement in Treasury market, as per the analysis in "A Debt Crisis is on the Horizon," penned by the luminaries Michael J. Boskin, John H. Cochrane, John F. Cogan, George P. Shultz and John B. Taylor. As a regular reader might suspect, I am somewhat skeptical about the claims in said article. That said, one may note that the discussion therein is not totally incompatible with a Functional Finance framework, although we would need to paraphrase what they wrote. However, the interest rate determination part of the article is pretty weak.
The article itself is not particularly interesting once we strip out the boilerplate that is designed to sell newspapers. As a writing exercise, it is fairly interesting -- they managed to hit most of the boxes for fiscal conservative scare stories....
More faux economics pushing a political agenda.
“When someone brings up the "global reserve currency" to justify their Treasury bear case, they are truly desperate.”
ReplyDeleteAb so f-ing lootely...
Like somebody has determined that the “USD is the reserve currency!”...
Kaivey you should read this and have second thoughts about the Max Kaiser people..
Brian it’s their deus ex machina when you stump them scientifically ... they just pull that whole “well it’s the world’s reserve currency!” out of their asses...
ReplyDeleteHow much of all the current offshore USDs are just the savings of the US multinationals due to tax deferment schemes they operated prior to the Jan 1 US tax law changes?
ReplyDeleteProbably half imo...
Hoover people and the Max Kaiser people are on the same political agenda
ReplyDeleteNo way, although they may share some commonality in certain area.
Reserve currencies are currencies that are most desire to save in, i.e., in which there is the most trust. As trust changes, so does saving desire.
ReplyDeleteAs long as the US has the largest economy and the most powerful military, the US will have greater trust than other currencies and will be saved accordingly.
As that changes, the balance will change.
China and Russia know this in chipping away at "dollar hegemony," which means that USD are the preferred international saving medium far and away. That is not going to change soon without some shock. But as China rises so will the RMB relative to the USD. Russia is acting now to align the RUB with the RMB ). (The renminbi (RMB) is the Chinese currency, while the yuan (CNY) is the unit of account.) See RUB/CNY or CNY/RUB. This will be a key indicator for Russia as oil is traded in the RMB in Shanghai (Chinese financial center).
It's happening through, and a lot more quickly that one would be aware of through Western media.
They’re doing that because Trump is telling them to knock it off or risk a big trade war... that’s the ONLY reason it’s happening...
ReplyDeleteTom this from Trump the other day he’ll have us out of Korea soon:
ReplyDeletehttps://twitter.com/realdonaldtrump/status/979449770640015361?s=21
Out of Syria soon and then out of Korea....
ReplyDeleteMore winning!!!
I don’t know if I can take much more winning!!!
ReplyDeleteOut of Syria soon and then out of Korea....
ReplyDeleteExpect the deep state to turn up the heat.
I'm rotting for this, but skeptical of whether it can be pulled off.
This goes totally against the hidden agenda.
"rooting for"
ReplyDeleteTom also re winning:
ReplyDeletePope denying the Hell Doctrine this week:
Read more at http://mobile.wnd.com/2018/03/does-the-pope-believe-in-hell/#BRCmiJrEJMjlE7Bu.99
Christendumb flipping out!!!
I don’t know if I can take any more winning!!!!
“I'm rooting for this,”
ReplyDeleteWell maybe don’t get too carried away looks like we may just redeploy to south of the border...
Sputnik International
ReplyDeleteSaudi Crown Prince Says Syria's Assad 'is Staying'
Trumps told him how it’s going to be....
ReplyDeleteAgree.
ReplyDelete#MAGA!
ReplyDeleteThe military famously ignored Obama's direct order and he did nothing. No reprimand, no recall, no court martial.
ReplyDeleteDoes anyone (aside from Franko) actually think that the military will listen to Spanky? Or that he is in control of anything beyond tweeting?
Obama was a wuss. I don't think they can roll DJT like that.
ReplyDeleteWe'll see. He will be tested, like they are testing Putin. Putin is taking none of it. I doubt JDT will either.
The National Interest
ReplyDeleteThe Army's 'Military Review' Just Declared that America Was Defeated in Syria
Task and Purpose
Obama was defeated not the US Military...
ReplyDeleteWe could kill all of the mfers in like a day if we wanted to...
Tom, Trump is shit canning the whole fetish on SpecWar being primary and shifting $ back to strategic systems ie the big stuff...
ReplyDeleteNo more “nation building” rather “nation destroying” ... use strategic systems to just knock the whole place down and kill a bunch of the mfers and then just leave and tell them don’t do it again or we’ll be back ...
Delusional. Where's the profit in that?
ReplyDeleteWe could kill all of the mfers in like a day if we wanted to..
ReplyDeleteLike in Vietnam, Afghanistan, Iraq, and Libya?
No will to do it Tom... material systems are there to do it but no will...
ReplyDeleteTrump is withdrawing from there I don’t think he ever thought the whole US approach to he GWOT was well thought out going all the way back to the Bush people and then the Obama people...
Trumps outa there now it’s been too long since and a re-do would be inappropriate .... turning the focus on things closer to home...
ROW only has to worry about a counter punch from Trump... which if they never take a shot at us first then they have nothing to worry about...
Who should be starting to worry is Mexico:
ReplyDeletehttps://twitter.com/realdonaldtrump/status/980451155548491777?s=21
“Mexico is doing very little, if not NOTHING, at stopping people from flowing into Mexico through their Southern Border, and then into the U.S. They laugh at our dumb immigration laws. They must stop the big drug and people flows, or I will stop their cash cow, NAFTA. NEED WALL!”
We might be back in there first time since Pancho Villa... look for at least drone strikes to start...
Trump will have the 1st Calvary Division meet the organized invaders at the border. Trump will not have the ordinary response to the approaching invasion, he is no paper tiger. He will meet them and use it as an grand opportunity.
ReplyDelete