Tuesday, July 05, 2016

Europe's (Baghdad Bob) "Comical Ali" Strategy
"The macro policymakers are now the economic equivalent of comical Ali, the Iraq Minister of information, who claimed on live tv during the invasion of Iraq in 1993, that Iraq and Saddam Hussein were winning the war against NATO troops while in the background, American forces were advancing within the picture frame. The early response from the EU and its leaders has been one of 'sadness' and a rhetoric line which followed the totally inept scaremongering which preceded the vote. Trust me, come end of next week everyone and their dogs will be looking for more soft and open-arm policies in discussions with the UK. I noticed that the Father of the EU, former Chancellor Helmuth Kohl was out in German media this morning calling for exactly that .. The problem.. We are saturated with low interest rates and QE, 75% of all QE goes to keep existing debt in place and with that being the number one priority, there is little scope or chances for capex and growth to come back. We have simply crowded out investment and productivity by trying to buy more time .. A dogmatic Fed and other major central banks will move deeper into negative yields."
-Steen Jakobsen
LINK HERE to the essay

1 comment:

Anonymous said...

Domino #3: M&G Suspends Trading In $6 Billion UK Property Fund