These
Debt Slaves are the Government’s Largest Asset Class, and it will Haunt the
Economy for Years - (www.wolfstreet.com) Endless
discussions of how important inflation is to the US economy, and how there
hasn’t been enough of it in recent years, and how more inflation would be a
godsend, has become the standard. The threat of lethal deflation is being
brandished to rationalize all kinds of absurd monetary policies. And we
know why: inflation is good only for debtors, in an over-indebted country. But
that’s not true either. Because a lot of debtors, particularly those who funded
their education with loans, are being strangled by … inflation. “College
Tuition and Fees constitute one of the biggest threats to our economic
outlook,” writes Jill Mislinski at Advisor Perspectives, which runs an excellent series of analyses
and updates on the topic. The chart below (by Advisor Perspectives) shows
the Consumer Price Index sub-component for college tuition and fees (red
line) going back to 1978. It also shows the price increases of autos (blue
line) and medical care (purple line), “both of which pale in comparison”:
Nervous Baltics on war footing as NATO tries to
deter Russia - (www.reuters.com) Leaders
in the Baltic countries and Poland fear the force NATO plans to deploy on their
territory is too small and symbolic to deter an attack by Russia, whose 2014
annexation of Crimea is fresh in the memories of the former Soviet-bloc states.
They will this week press other ministers of the western military alliance to
help them build an air defense system against Russian aircraft and missiles.
But that would be a highly sensitive step, likely to be condemned by Moscow as
yet more evidence of a NATO strategy threatening its borders. Asked about the
likelihood of Russian aggression in the Baltics, Lithuania's Defense Minister
Juozas Olekas told Reuters: "We cannot exclude it ... They might exercise
on the borders and then switch to invasion in hours."
Polls
show increasing support for Brexit; Murdoch's Sun backs 'Leave' - (www.reuters.com) Britain's
"Leave" campaign opened up a 7-point lead over "Remain"
ahead of a referendum on membership of the European Union an opinion poll
showed late Monday, while the nation's biggest-selling newspaper urged readers
to vote to quit the bloc. The result of the June 23 referendum will have
far-reaching consequences for politics, the economy, defense, migration and
diplomacy in Britain and elsewhere. Recent polls are suggesting that momentum
has swung towards the "Leave" camp, or a so called Brexit, unsettling
investors. "Leave" in recent days has focused its campaign on the
issue of immigration. According to the YouGov poll for The Times,
"Leave" held 46 percent support compared with 39 percent support for
"Remain." Undecided voters were 11 percent, while 4 percent won't
vote.
China H-Share Rally Unravels as Index Sinks
Most Since February - (www.bloomberg.com) China’s
stocks tumbled the most in three months as concern grew about the nation’s
economic outlook and investors awaited MSCI Inc.’s decision on whether to
include mainland shares in its global indexes. The Shanghai Composite Index
dropped 3.2 percent as mainland markets traded for the first time since
Wednesday. The ChiNext index of smaller companies sank 6 percent to its lowest
level in almost a month, as Leshi Internet Information & Technology Corp.
plunged by the 10 percent daily limit. China’s fixed-asset investment in the
first five months of 2016 trailed all 38 economists’
forecasts, reports showed Monday, while yuan approached a five-year low.
Here
They Come: ECB Pledges To Bailout Markets In Case Of Brexit - (www.zerohedge.com) With
British mood turning sharply negative toward remaining in the Eurozone
according to recent polls, and Brexit suddenly looming, the worst case scenario
for the scaremongers is starting to play out: with the endless doomsday
scenario postulated by pundits, economist and central bankers, among which BOE
governor Carney himself warning of a potential recession, a collapse in
Sterling and a sharp drop in capital markets and David Cameron going so far as threatening with war, this may be about to play out. And, if
anything, the passage of Brexit would test just how bad at forecasting all the
supposedly smartest people once again are. However, these ridiculous
predictions of fire and brimstone will not happen. The ECB has made sure
of that. According to a Reuters report,
the European Central Bank would publicly pledge to backstop financial
markets in tandem with the Bank of England should Britain vote to leave the
European Union.
Abe Aide Sees Potential for BOJ Buying Riskier Corporate Debt - (www.bloomberg.com)
Fitch warns Japan ratings downgrade possible after tax hike delay - (www.reuters.com)
China spent $470bn to maintain confidence in renminbi - (www.ft.com)
China May Home Sales Rose 32.9% Amid Policy Tightening Measures - (www.bloomberg.com)
Fed Decision Makers Wrestle With So-Called Natural Rate - (www.wsj.com)
Investors pile into quant funds - (www.ft.com)
No comments:
Post a Comment