The day in review
Wrap
Today was pretty neutral. Equities were up slightly, but not enough to matter. Quite a number of the FAANGFAT stocks are due to report this week. $TSLA after hours tonight.
A stock I’ve liked for a while is $TPL, Texas Pacific Land. Do your own research, but this owns a big chunk of land in Texas, arising from some railway concession. Land stocks like $FPI and $LAND have been doing well, following the renewed interest in agricultural commodities. Take a look at $DBA. This all feeds into the inflation narrative.
Golden age for macro
I listened to Vincent Deluard on the Market Huddle podcast. He was talking about the golden age of macro. His thesis seemed to be that countries are rapidly reaching the point where Mundell’s trilemma (https://www.investopedia.com/terms/t/trilemma.asp) will start to bite and they’ll have to make the decision between running monetary policy to keep their domestic economy stable or their exchange rate stable. They cannot contemplate imposing capital controls, and so they have never been entirely free to set their monetary policy and exchange rate independently, but positive interest rates have given them scope to balance the two to arrive at relatively stable exchange rates and monetary policy that is not disastrously bad. (I know that plenty of people would disagree with that, but park that thought.) Now the developed world is reaching the zero lower bound, the exchange rate is going to have to take the strain. The sheer arithmetic of financing cost to public and private sectors means that we can never go back to positive interest rates.
As someone said, the MMT idea is that you can monetize debt until you start to see inflation, then you can steadily increase taxes until it goes away again. In a democracy, that simply is not going to happen. Taxes cannot go up, and spending cannot go down in a country where a government depends on free and fair elections to get back into power.
People saying there’s no work?
— CraiginWales #TeamQueen #TeamPolice #TeamToryGlory (@ghost_wales) April 25, 2021
Try training to be a plasterer or carpenter or anything that’s a skilled trade.
Because these trades are like rocking horse shite especially if you’re good.
Everyone i know is flat out fully booked all year.
In case you missed it: Baltic Dry Index has jumped to the highest level in a decade on global shipping container shortages. pic.twitter.com/MJ4Hen9t8g
— Holger Zschaepitz (@Schuldensuehner) April 25, 2021
— Mickey (@Mickey58630673) April 24, 2021
Comments !