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Category: David Stockman

Draghi The Dummkopf—–Here Comes More Beggar-Thy-Neighbor

The world’s most dangerous central banker is scheduled to unleash more financial mayhem tomorrow. But there is only one possible result from Mario Draghi’s plan to drive the ECB deposit rate deeper into ZIRP-land from an already absurd level of -0.2%. Namely, it will cause a whoosh of short-term flows out of the euro, thereby driving the EUR exchange rate downward against the dollar and other…

It Is Different This Time——–Now Comes The Global CapEx Depression

Caterpillar (CAT) posted a disastrous 16% decline in worldwide retail sales this morning, meaning that its sales have now fallen for 35 straight months. As Zero Hedge noted, not only did US retail sales finally rollover and drop by 8% compared to prior year, but the rest of the world was a veritable bath of yellow blood: …….. sales elsewhere around the globe…

The Bubble Finance Cycle——What Our Keynesian School Marm Doesn’t Get

The world of Bubble Finance economies created by the Fed and other central banks is fundamentally different than that prevailing under the “Lite Touch” monetary policies which preceded the Greenspan era. Those essentially reactive and minimally invasive central bank intrusions into the money and capital markets prevailed from the time of the Fed’s 1951 liberation from the US Treasury by the great William McChesney Martin through September 1985.…