My new podcast episode is out.

Look at this crap analysis of the euro from Citi's FX group

Read this Citi analysis of the euro.What a bunch of ueseless garbage. They fail to even mention the one and only reason the euro remains strong: AUSTERITY!! It's austerity, stupid! Austerity removes euro from the system. Makes euro harder to get. Creates a shortage.

The Citi "analysts" end their article with this pathetic expression of conviction:

We are no less convinced than we were at the start of the year that EURUSD is going to head much lower over the coming years

We anticipated this move would already have begun at this stage yet we sit at almost the exact level where we closed 2013

We believe the “day of reckoning” is not far away and that as detailed above the building blocks are now falling in place. We may have already peaked with the marginal new high posted at 1.3967 this month but either way we are skeptical of any sustainable move over 1.40 materialising and still believe that we may see EURUSD much closer to 1.20 than 1.40 before this year is behind us.

The "day of reckoning."

"Building blocks."

OMG, what a joke.

Do yourself a favor and fade these guys and take their (and their clients') money. You're doing the world a favor, believe me. Consider it as euthanizing something sick.

Any currency analyst should understand that auserity keeps a currency strong. Look at what happened to Latvia or Estonia, when they imposed austerity to position to join the euro. Their economies collapsed, but their currencies soared.

These analysts at Citi (and on Wall Street in general) are clueless.

By the way...I teach this in my course and it's one of the reasons why I have been able to rack up 10 months without a loss and grow my account by 120% and a client's account by 40% in one month.

We just had a $100 billion "helicopter drop" and the inflationista's say nothing

Why aren't all the inflation nuts screaming, "money printing, hyperinflation?"

But I thought gold WAS money???

David Lutz, head of ETF trading at Stifel Nicolaus said that all the selling in gold so far this year was the result of people "monetizing" their gold holdings. But...I thought gold was already money??

To all the losers who got everything wrong: No disaster if and when the Fed changes course!

Some debt terrorists won't go quietly

Everyone knows austerity and the debt fears that drove the doctrine are total junk economics.

It's just a matter of time before the whole thing is abandoned and we enter a new economic age of enlightenment led by policies that have been espoused by this blog and MMT for years.

Some zombies refuse to die, however. You can find them at Cluelesshedge.

Zero brains at Zerohedge

Sheer and utter stupidity coming from this Asia based economist

There was an article in the China-based news service, Caixin (I caught this on Zerohedge) the other day, written by one "independent economist" named Andy Xie.

Turns out Mr. Xie was the former "star" chief Asia-Pacific economist for Morgan Stanley. (Doesn't take much to be a "star" over at Morgan Stanley, apparently. A general lack of knowledge on economics will suffice.)

Anyway, in the article Xie opines on the outlook for Japan, where he gives us these pearls of wisdom:

It is a fact that when it comes to the oddly resilient Japanese hyperlevered economic model, the bodies of those screaming for the end of the JGB bubble litter the sides of central planning's tungsten brick road. Yet in the aftermath of last month's stunning surge in the country's trade deficit, this, and much more may soon be finally ending. Because as Caixin's Andy Xie writes "The day of reckoning for the yen is not distant. Japanese companies are struggling with profitability. It only gets worse from here. When a major company goes bankrupt, this may change the prevailing psychology. A weak yen consensus will emerge then." As for the bubble pop, it will be a sudden pop, not the 30 year deflationary whimper Mrs. Watanabe has gotten so used to: "Yen devaluation is likely to unfold quickly. A financial bubble doesn't burst slowly. When it occurs, it just pops. The odds are that yen devaluation will occur over days. Only a large and sudden devaluation can keep the JGB yield low. Otherwise, the devaluation expectation will trigger a sharp rise in the JGB yield. The resulting worries over the government's solvency could lead to a collapse of the JGB market." It gets worse: "Of course, the government will collapse with the JGB market." And once Japan falls, the rest of the world follows, says Xie, which is why he is now actively encouraging China, and all other Japanese trade partners of the world's rapidly declining 3rd largest economy to take precautions for when this day comes... soon.

A FACT THAT JAPAN IS HYPER-LEVERAGED??

FACING INSOLVENCY??

COLLAPSE OF THE JGB MARKET???

This crap is beyond ignorant. It is mind-numbingly dumb ass stupid.

The really, really, sad part, though, is that as dumb as this (to use Matt Franko's term) moron is, policy makers in Japan will read this and believe it to be true. That's right. Mark my words. Political leaders in Japan will start talking about cutting the debt to avoid insolvency. And don't be surprised if you even hear officials from the Bank of Japan worry outloud about interest rates and their own ability to keep them down. After all, we've seen such idiocy from our own Fed, so don't think it can't happen elsewhere. It can and it will.