The World of 2+2=5 Is Back In Full Swing".. readers of NOTES must always be aware of political fallout at times of increased electoral concerns. The coming elections in the EU, from Renzi’s referendum to the French and German elections, will be fraught with political and bureaucratic intrigues. I remind all my readers, the most powerful bureaucracies are the ECB and the European Commission in Brussels. Unelected officials have the power to corrupt and with their absolute sense of certainty in their policy decisions, they will corrupt absolutely. Failure to understand this will result in huge financial losses. Second, the GDP data released on Friday morning was above consensus. The pre-release guesstimate was for 2.5% third quarter growth while the actual 'real' number was 2.9%. I use real in quotes because this number will be adjusted two more times and using the data from the Atlanta Fed I would guess that the initial release will be revised lower .. the ridiculousness of FED communication policy .. If the FED is going to raise rates in December why did the interest sensitive assets diverge from the headline ..? The lows made in the euro and gold should be good tests for the market’s respect for the underlying market fundamentals .. Also, the U.S. yield curves will provide us with the market’s mood towards the Fed. If the GDP was a heavy weight on the FOMC then the yield curves OUGHT NOT have steepened as the short-end yields SHOULD have been driven higher."
- Yra Harris
LINK HERE to the commentary