La, La, La.

Finally, in case you haven’t had enough of “connecting the dots” today, here’s another exercise for you…


CPI Beats, Dollar, Yields Jump

CPI rose 0.4% vs est. 0.3%
Forecast range from up 0.2% to up 0.4% from 76 estimates
Ex. food, energy up 0.2% vs est. 0.2%
CPI y/y rose 1.9% vs est. 1.8%

The Most Important Paper Of The Next Decade

“Higher real rates, inflation and wage growth to pick up, and inequality going down. This is the opposite conclusion that almost all economists are subscribing to.”

No ‘Apocalypse Now’, But Maybe Later – Full Week Ahead Preview

This week’s market-moving events are likely to be unscheduled. Remember, Irma is still a catastrophic natural disaster even if it didn’t quite turn into a scene out of a bad Jake Gyllenhaal movie. And as the above mentioned Ben Purvis notes, “Kim Jong Un [could decide] to inject himself into the conversation again,” at any time.

(Still) Hakuna Matata?

Perhaps the most amusing thing about it all is that it’s become so ubiquitous and reliable that it can now be summarized succinctly in the form of a bullet point (and apparently “bulletproof”) investment thesis…

Deflation Is Here And The Ice Age Cometh: Albert Edwards Is Back

“I was too optimistic!”

Mohamed El-Erian On ‘Demons’, Collateral Damage And Unintended Consequences

“…there is no guarantee that a change in policy approach would do anything more than threaten even greater collateral damage and unintended consequences.”

CPI Misses Across The Board, Dollar Dives

CPI rose 0.1% vs est. 0.2%, according to the BLS.

Ex. food, energy up 0.1% vs est. 0.2%

Incomes Flatline, Spending Barely Grows, PCE Manages Not To Be Catastrophe

Well, this could have been better.

A Midsummer Night’s Dream: European Inflation Hangs In There As Euro Imperils Stock Rally

“That could be interpreted as meaning that euro gains are excessive compared to the economic improvement in the region.”

‘It Can’t Be Helped’: Japanese Inflation Refuses To Rise Despite Bajillions In Money Printing

“The BOJ has done what it can with monetary policy. It can’t be helped.”

Gradually And Then Suddenly

“But, hey, we’re hitting our numbers just fine as it stands and, if you hadn’t noticed, our stock price hit a new high yesterday. Why mess up a good thing?”

Albert Edwards And 1 ‘Quite Amazing’ Chart

“This is quite amazing given where we are in the global economic cycle.”

It ‘Plunged More Than 50% In Seconds’: Treasury Vol. Index Hit Lowest On Record Friday

“All clear”…

This ‘Party’ Has To End Eventually – But ‘Eventually’ Isn’t Today

“…market participants are understandably worried about how they will be weaned off the current highly-liquid environment.”