Author Archive: Jeremy Parkinson
Perpetual Notes – China’s New Way To Hide Debt (Call It Equity)
The legacy of the soon-to-retire PBoC governor, Zhou Xiochuan, will be that in sharp contrast to his western brethren, he warned that China’s credit bubble would burst before the fact. Two weeks ago, Zhou warned during the Party Congress that China’s financial system could be heading for a “Minsky moment” due to high levels of […]
US-China Trade At Global Crossroads
Despite “America First” policies, President Trump’s economic agenda needs expanding trade with China. President Donald Trump began his grueling 12-day Asia tour amid US Special Counsel’s first indictments, which cast a shadow over the White House’s future. Nevertheless, Trump and President Xi Jinping were able to sign deals worth US$253 billion, which makes the visit […]
Bitcoin Price Doubles In Troubled Zimbabwe
A surprise political move by Zimbabwean president Robert Mugabe, who fired his deputy Emmerson Mnangagwa, has played havoc on the US dollar/bond note parallel exchange rate, as well as on Bitcoin price in the country. image courtesy of CoinTelegraph image courtesy of CoinTelegraph, Bitcoin was already trading at a highly inflated rate in the troubled African country as its […]
How Close Are We To Peak Gold?
Well-known mining geologist Keith Barron, Chairman and CEO of Aurania Resources, tells us that with the average goldmine worldwide extracting gold below 1 gram per ton, peak gold is probably here and that, unlike oil, there isn’t any new technology that makes finding it or extracting it any easier. No New Tech Coming, Peak Gold Is […]
Oil Markets Turn Bullish With Shift To Backwardation
This week both Brent Crude and WTI (Light Sweet Crude Oil) made a new price high in more than 2 years with Brent Crude rising to $64 per barrel and WTI to $57 per barrel. These price gains come before the OPEC’s meeting later this month on Nov 30. In the past two years, OPEC has imposed production cuts in […]
Data Brand Dependence
If it is a day ending in “y” you can be sure there is somewhere in the financial press a story or “news report” of the looming bond selloff – even if it is due to some future event or made up phenomenon. Today’s is another in the series this time using a dramatized setup […]
As Brexit Negotiations Restart, Get Ready For Pound Volatility
With the Bank of England rate hike in the rearview mirror, the British pound is in search of a new narrative to drive future trading. In an earlier commentary, we wrote that economic data and central bank policy are now in the backseat as the Brexit deadline approaches. Looking at speculator sentiment, traders are no longer at […]
Naked Predictions Can Put Analysts In The Dirt
In just one day, I saw three completely different analyses on the market. First, Grantham said that he does not foresee a bubble. Rather, he sees low yields and a time correction. Secondly, analysts like Chris Ciovacco say that Nasdaq just broke out of a 20-year consolidation. Bullish sentiment suggests the market will explode higher […]
How Central Banks Widen Wealth And Income Gaps
The Federal Reserve’s latest Survey of Consumer Finances, according to Federal Reserve Governor Brainard, shows that the share of income held by the top 1 percent of households has risen from 17 percent in 1988 to 24 percent in 2015, and that the wealth held by that same group rose from 30 percent in 1989 to […]
Only 4% Of S&P 100 Pays US Statuary Corporate Tax Rate
A cut to the headline rate of corporate tax is the cornerstone of President Trump’s tax reform policy. The US has one of the highest rates of corporation tax at 38.9% (the federal rate combined with average state and local taxes) according to the OECD, compared to an OECD average of 24.1% [Timekess] US lawmakers have […]
