Loading ...The central banks’ “slippery slope” has led us to an ominous place. “Strongmen” now believe it’s within their domain to dictate the markets, interest rates and currency levels. All the while, it’s regressed into an unprecedented global Bubble replete with a Global Financial Arms Race. Markets trade as if they fully expect all governments to absolutely, at all cost, safeguard their respective financial wealth (i.e. Bubbles). Remember “the West will never allow a Russian collapse”? And “Washington will never allow a housing bust”? Global policymakers will never allow another major crisis. Well, let’s see how this game of chicken between President Trump and President/General Secretary Xi plays out.
July 18 – Wall Street Journal (Nick Timiraos): “The Trump administration expects annual budget deficits to rise nearly $100 billion more than previously forecast in each of the next three years, pushing the federal deficit above $1 trillion starting next year. The revisions… reflect the cost of federal spending increases agreed to earlier this year and higher interest payments. The budget proposal released in February showed annual deficits totaling $7.1 trillion over 10 years. The latest revisions increase these cumulative deficits by $926 billion, to $8 trillion.”