Faber News Flow

For almost two centuries, Sterling reigned supreme as the world's reserve currency, propping up the vast British Empire which was the world's superpower during the 19th century and the early 20th. Then, in the span of just a few months, everything changed and the US Dollar took over after a series of dramatic events. For those unfamiliar with this historic transformation, Clarmond's Mustafa Zaidi and Chris Andrew describe the series of events in which Iran and its oil reserves proved to be the final nail in the coffin of sterling and the British Empire. However, what is far more interesting, is their suggestion that the current tensions between Washington and Tehran, and what happens to Iranian gas, could also be the event that results in the end of the dollar's own reserve status. Why? Read on in Clarmond's observation on " Self Deception and Pride." Libra Could Compete With Traditional Central Bank Currencies: Kroszner Wilting in the muggy summer of 1945...

"I know of no country in which there is so little independence of mind and real freedom of discussion as in America." Happy birthday America ! This morning's intro-quote is over 170 years old – and I could only use it on a day when all good Americans will be on holiday. Extra points to anyone who can name the author sans Google. Interesting markets y'day. European bonds were off to the races, perceiving new ECB head Christine Legarde as QE lower-for-longer dove who will continue to ease, ease and ease like Draghi. Bunds at -0.40%! Even Italian 2-year notes dipped below zero percent as the EU dropped threats to take action against the deficit. Some day we shall shake our heads in disbelief at that price… Crunch CEO 'Ecstatic' About TPG Deal, Says Fitness Has Never Been More Popular In the States, the Dow hit a new high, and Trump tweeted it as a personal triumph. He is not so stupid as to mistake the stock market as a proxy for economic health – but he is makin...

With the US closed for Trump Military Parade Day (also known as the 4th of July), and global markets drifting merrily in virtually non-existant volumes, stocks are where we left them at the close on Wednesday, with US futures celebrating not only today's holiday but also the longest economic expansion in history in style -  with the S&P, Dow Nasdaq all at all time highs, and the Emini just above 3,000. Meanwhile, around the globe government bonds holding near all time lows on Thursday on the hope that economic data deteriorates further, and that a recession, or worse, forces the Fed and other central banks to unleash ZIRP, NIRP and more QE, has pushed world stocks to new 18-month highs. With US markets closed, there was little action elsewhere: European bourses were flat, with Europe's Stoxx 600 unchanged amid thin volumes. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%. Germany's 10-year Bund yield fell below -0.4%, dropping as low as...

President Trump has never been a fan of the strong dollar. And after beating around the bush for months by demanding a 50 bp rate cut and more QE from the Fed, it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary. In a tweet, Trump blasted China and Europe for playing a 'big currency manipulation game' and recommended that the US "MATCH" or risk being "the dummies who sit back and politely watch as other countries continue to play their games." China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games - as they have for many years! — Donald J. Trump (@realDonaldTrump)  July 3, 2019 Notably, the tweet calling for even more easing followed Trump's latest tweet celebrating new market highs. S&P 500 hi...

After several unsuccessful attempts to put his preferred candidates on the Fed's board, moments ago Donald Trump announced that he intends to nominate Christopher Waller, who is currently the Executive VP and Director of Research, at the St. Louis Fed, to the board of the Federal Reserve. Prior to his current position, Christopher served as a professor and Chair of Economics at Notre Dame. Donald J. Trump ✔ @realDonaldTrump  ·  15 h I am pleased to announce that it is my intention to nominate Christopher Waller, Ph. D., Executive VP and Director of Research, Federal Reserve Bank of St. Louis, Missouri, to be on the board of the Federal Reserve.... Donald J. Trump ✔ @realDonaldTrump ....Prior to his current position, Christopher served as a professor and Chair of Economics at Notre Dame. 41.2K 12:08 AM - Jul 3, 2019 Twitter Ads info and privacy 8,503 people are talking about this For those who haven't heard of Waller before, it's hardly a shock: it appears to be his  inten...