Arthur Rackham “Why, Mary Ann, what are you doing out here?”1907 I’ll try and keep this gracefully short: Mario Draghi ‘unleashed’ a bazooka full of desperate tools on the financial markets yesterday and they blew up in his face faster than you could say blowback or backdraft (and that’s just the start of the alphabet). This must and will mean that Draghi’s stint as ECB head is for all intents and purposes done. But… But there are two questions: 1)
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William Henry Jackson Tunnel 3, Tamasopo Canyon, San Luis Potosi, Mexico 1890 • IMF Says World At Risk Of ‘Economic Derailment’ (BBC) • Whole Of Europe Risks Spinning Into Crisis If Leaders Mishandle Brexit (AEP) • This Is Jeff Gundlach’s Favorite -& Scariest- Chart (ZH) • “However It Takes” #Draghi (BM) • Senior European Bankers Voice Concerns Over ECB Cut (FT) • Markets Betting On Near-Zero Interest Rates For Another Decade (Reuters) • What’s In A Growth Target? For China,
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Dorothea Lange Missouri drought refugees. Broke, baby sick, car trouble. U.S. 99 near Tracy, CA 1937 “Those are my principles, and if you don’t like them… well, I have others.” – Groucho Marx What is perhaps most remarkable about the deal the EU is trying to seal with Turkey to push back ALL refugees who come to Greece is that the driving force behind it turns out to be Angela Merkel. Reports say that she and temp EU chairman Dutch
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DPC Sternwheeler Falls City, the levee, Vicksburg, Mississippi 1900 • The New Danger From Derivatives (BBG) • The China Intervention Trade Is Back as State Funds Battle Bears (BBG) • Fake Trade Invoicing In China Is Back (BI) • Phantom Goods Disguise Billions in China Illicit Money Flows (BBG) • China, Fighting Money Exodus, Squeezes Business (WSJ) • China’s Historic $338 Billion Tech Startup Experiment (BBG) • Schaeuble Snubs Debt Relief For Greece (AFP) • Draghi Stimulus Fails in Stock
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NPC Communist Party Young Communist League, Washington, DC 1925 • China Exports Crash 25.4%, Imports Down 13.8% (ZH) • Conflicting China Policy Objectives Put Reform at Risk (Moody’s) • Despite Slowdown, China’s Oil Imports Surge (WSJ) • China’s Velocity Of Money Is Now The Lowest In The Entire World (ZH) • Central Banks Are Fixing To Ambush The Casino (David Stockman) • Brussels Seeks Further Reform To Seal Greek Bailout (FT) • Greece Clears Bailout Hurdle With Debt Relief Pledge
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DPC Launch of freighter Howard L. Shaw, Wyandotte, Michigan 1900 • Debtor Days Are Over As BIS Calls Time On World Credit Binge (Tel.) • ‘Gathering Storm’ For Global Economy As Markets Lose Faith (AFP) • The Bank Of Japan Has Turned Economics On Its Head (BBG) • China Growth Addiction Leaves Deleveraging, Reform in Back Seat (BBG) • China Defends Veracity Of Foreign Exchange Reserves Data (FT) • China’s Leaders Put the Economy on Bubble Watch (WSJ) • China
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Arnold Genthe San Francisco , Chinatown. The street of the gamblers at night 1900 China never had an actual economic model or growth model. It simply printed an obscene amount of money, especially after 2008, and used it to build factories, 30-story see-through apartment blocks and highways into nowhere cities, without giving much if any thought to where this would lead when their formerly rich western customers had less to spend on its ever increasing amount of ever more useless
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Harris&Ewing War-bond rally on Penn. Avenue, Washington DC 1918 • China Picks Growth Over Reform At Annual Congress (AFR) • Hard Landing Fallacy “No Way” In China: Regulator (Xinhua) • China Says Cuts In Overcapacity Won’t Cause Massive Layoffs (Reuters) • China PM Predicts ‘Battle’ For Growth (BBC) • US Weekly Earnings Drop Most On Record (ZH) • Sunshine, Lollipops and… (Bill Gross) • Sweden Begins 5 Year Countdown Until It Eliminates Cash (ZH) • Confused By The Economic Modelling?
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DPC Country store, Venezuela 1905 • China Intervenes in Stock Markets Ahead of Annual Policy Meeting (BBG) • China’s Rebalancing Is Overrated (Balding) • China Lays Out Its Vision To Become A Tech Power (Reuters) • Jim Rogers: There’s a 100% Probability of a US Recession Within a Year (BBG) • US Watchdog To Probe Fed’s Lax Oversight Of Wall Street (Reuters) • It Begins: Palace Revolt Against ECB’s NIRP (WS) • What’s Best For UK Savers Who’ve Lost £160
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Edward Meyer School victory garden on First Avenue New York 1944 • China’s Coming Mass Layoffs: Past as Prologue? (Diplomat) • Red Ink Rising (Economist) • China Begins to Tackle Its ‘Zombie’ Factory Problem (WSJ) • PBOC Pulls $129 Billion in Biggest Weekly Withdrawal Since 2013 (BBG) • China To Increase Defence Spending By ‘7-8%’ In 2016 (AFP) • “I See Bubbles Bursting Everywhere” (CNBC) • UBS: “The Move In Oil Is TOTALLY Short Squeeze Led” (ZH) • EU Superstate
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