Category Archives: China

Prepare For Much Higher Long-Term Rates

Posted on May 3, 2018 by macromon

There has been a huge drain of liquidity from the U.S. Treasury market over the past few years, and may signal a structural change to how the United States finances budget deficits. The government will always find a way to … Continue reading →

Posted in Bonds, Charts, China, Credit, Geopolitical, Interest Rates, Sovereign Debt, Uncategorized | Tagged , , , | 36 Comments

China’s Opaque Financial System And The U.S. S&L Crisis

Posted on April 19, 2018 by macromon

Awesome chart on the opaque China’s Financial System from the IMF’s latest Global Financial Stability Report.    China has been a hedge fund graveyard as short positions on the country have moved sideways if not against the perps. . The … Continue reading →

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Memo to Larry Kudlow re: China Trade

Posted on April 11, 2018 by macromon

  To:         Larry Kudlow From:    Investor Class Date:      April 11 Re:          U.S.-China Trade Dispute _______________________________________________________________ We appreciate your positive disposition but time to get real with the markets.   Don’t lose … Continue reading →

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Nothing New In President Xi’s Speech

Posted on April 9, 2018 by macromon

President Xi said nothing in his address to the Boao Forum that hasn’t been said before. Therefore markets must be lathered up (S&P futures up as high 40 points) over Xi positioning himself as “the grown up in the room.” … Continue reading →

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Trump’s Tax Cut Will Widen Trade Deficit

Posted on April 1, 2018 by macromon

Last year’s Republican tax plan was hailed as a victory for US President Donald Trump, but it carries a hidden cost: a ballooning US trade deficit. As happened after Ronald Reagan’s cuts in the 1980s, Trump’s cut is almost certain … Continue reading →

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Unmoored & Rudderless Stock Market

Posted on March 28, 2018 by macromon

Didn’t today’s market feel like a rudderless sailboat ripped from its mooring and blown about by random gusts of wind (algos)?   We count the Dow crossed the unchanged line at least thirty times today. The generals have have been taken … Continue reading →

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“Many Chinese Would Like To Teach [Trump] A Lesson”

Posted on March 27, 2018 by macromon

Yikes!  Nasty rhetoric from a newspaper under the auspices of the People’s Daily. Me thinks Trump & Co.  are going to be played by Xi & Co. like a Chinese fiddle. China already perceives the Trump Administration as a Paper Tiger. … Continue reading →

Posted in China, Geopolitical, Uncategorized | Tagged , , | 16 Comments

China calls on WTO members – EuroNews

Posted on March 26, 2018 by macromon

Beijing urges them to oppose U.S. tariffs targeting China’s alleged theft of intellectual property.… READ MORE : http://www.euronews.com/2018/03/26/ch…

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China’s Other Nuclear Option

Posted on March 25, 2018 by macromon

Sorry to be such a downer, folks. We have to stress test the macro scenarios versus current market conditions by looking at worst case events, then calculating expected values based on the most likely probabilities. Especially after such a huge … Continue reading →

Posted in Apple, China, Equities, Uncategorized | Tagged , , , , | 18 Comments