The Banking and Strategy Initiative

Chillin' out till it needs to be funded

The Thursday Fed Update: German Bunds giving US a run for the money Euro translates into hard times for the Dollar

Dollar gets harder ith every Euro tick going don but the Aussie and the Yuan are catching on and that is keeping ( the latter) the US dollar from impoding on itself as US Trade keeps on improving with China and US equity futures flail in Europe trading before opening positive or improving during the day on local sentiment. German 10 Y yields are up to 1.5% near UST yields of 1.6% and any new Union structure may differ only in fiscal treatment of its currency eventually as Europe tries to claw back from the deep hole that will likely remain for another two years and thats false hope all the way even if Germans have grown back on the South’s penury during difficult times.

Fed Reserve Bank credit however stayed at a standstill in the week reported yesterday as also Fed Reserve Assets except for a $1 B increase in FX assets Money Supply tried to keep the gains of a fortnight ago ith a $14 B rise , however the OECD economies are really not getting the Economic traction to gro ith the tailwind of Money supply even with active QE and Momney supply remains anemic compared to 12% growth in China and 16% in India



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