ROTTEN APPLES

In our Overnight post yesterday we mentioned an upcoming G20 meeting set for tomorrow. As the
blog listed below cites, fiscal policy will most likely take center stage in the discussions. Monetary policies are about as worn thin as an unsuccessful traveling salesmen's trousers.

Indirectly, though many will deny it, this is a panic button designed to let what has mostly been pathetic central banking ploys and their perpetrators pass the blame, saying: "Well, we did all we could!" Yes, you did and now all that is missing are the unintended consequences.

Proximity triumphs all other concerns. The author here claims Chinese capital outflows have been overstated. We doubt that. We also doubt that G20 counties really believe markets should set exchange rates especially when fears of global recessions threaten their home front. After all, we're talking politicians and bureaucrats here.

Another common fallacy here is that something has to match previous negative conditions to trigger a similar performance, notwithstanding a favorite line often used in these situations, things are different this time. Panics, stampedes, call them whatever you want, don't take the time to calculate such whenever they happen. That's why they're called panics.

But as we always say: Read and decide for yourself. After nearly a decade now very little except for a few more obstructive regulations to free markets has changed. In fact, there might now be more rotten apples in the barrel than before this all began.

marctomarket.com/2016/02/g20-meeting-is-no-jedi-council