Asian markets were in two minds whether to follow energy prices or industrial metals after the news from Washington yesterday. The Nikkei (-0.4%) interpreted it as negative and hit stocks from the opening bell, but did not really go anywhere from then onward. The JPY has resumed its downward trend and is this evening flirting […]
QUESTION: If governments have been borrowing without limit since world war 2, are you saying that there is some line that is cross in debt to GDP that results in default? Thank you JU ANSWER: No. The debt to GDP ratio is interesting. The USA is at about 103% and China is at 250%. […]
QUESTION: Why are long-term yields on risky European debt below that of US Treasuries? Is this the European bubble madness? HN, Frankfurt ANSWER: This is unquestionably a bubble, but the buyer has been the ECB (European Central Bank). Yields on risky European bonds have been driven below the yields of long-dated US securities. The financial system […]
QUESTION: Mr. Armstrong, I believe you mentioned at one of the conferences that the Chinese dragged a member of their high court out into the square and set him on fire in his judicial robs. Am I correct in that statement? When was that exactly? MS ANSWER: You are not far off. Zang Tang (? – […]
QUESTION: Thanks for the update. So it looks like the Vertical Market in the Dow will extend into the end of this cycle 2032 as you warned it could do. Correct? EK ANSWER: It appears to be shaping up that way. The consolidation has been shallow and nothing to get excited about. If the January […]
CLICK ON CHART It is amazing how people have simply declared that the dollar is in a perpetual bear market as if the USA is the only nation with a debt. They judge the entire future by a few weeks of price action. That is what is so dangerous – emotional trading. I have […]
Private Blog – The EURO – Has the Dollar Rally Begun?
Shanghai was the star performer today, gaining 1.5% as moves to open the domestic market continues to progress. New rules that will allow overseas listed companies to list domestically is a strong signal that China is open (and encouraged) for business. News that the regulator is to issue draft rules surrounding the issuance of CDR’s […]
The EU Commission is calling on Germany to pay up to €12 billion more annually into the EU’s pocket for the European budget. With Brexit, there will be a gap in their funding of some €3.5 to €4 billion euros. The EU, in reality, would have less to monitor, but there are never any savings in government. […]
QUESTION: Mr. Armstrong; You have said that Brexit is good for Britain and that the financial center could never move to Paris or Frankfurt and survive. Can you elaborate on that topic for us Brits? GS ANSWER: It is amazing that the politicians are so clueless and the heads of the banks are far too […]
