There's Fear Behind the Curtain

The blitz today of MOPE is beyond anything I have ever seen. Somebody is scared to death of something.

Jim

I agree with you Jim. The MOPE blitz is impressive. There are signs growing "economic roll-over" (see chart below) in more than a few series I follow. The solution is certain to be more quantitative easing (devaluation) at a time when global tensions continue to intensify as a result of it (see article below). I think that something is a sequence of events, both economic and social, beginning to unfold across the globe.

Eric

Chicago Fed National Activity Index (CNFAI) and S&P 500 Average:


Headline: China Said to Widen Its Embargo of Minerals

China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted some shipments of those materials to the United States and Europe, three industry officials said this week.

The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.

Source: nytimes.com
Source: chicagofed.org