Tom Luongo has followed up on his promise of further elucidation of the economic and monetary front of the global war the elites of the collective West are trying to prosecute in order to maintain and extend their rule.
Mark, as far as I know there are bunch of countries with variable/adjustable mortgage rates ONLY. For example Sweden or Poland. So how these rate hikes will work out for them? Can ECB can save them after LIBOR is dead???
EU authorities are pushing toward transition to a SOFR-like, "risk free" reference rate (EONIA), but, unlike LIBOR, EURIBOR doesn't have a fixed sunset date (yet), and may continue to be used in the EU as a fallback rate. That said, EURIBOR does not have the market heft that LIBOR once did to be insulated from global realities, so the ECB will not be able to save borrowers (and lenders) for long.
CORRECTION/EDIT: EONIA was replaced last year by what is now called the Euro Short-Term Rate (ESTR), which has largely the same effect in marking to actual market. My bad--should Google first.
Who knew--in the mind-numbing tedium of converting my clients' LIBOR financings (and related swaps) to SOFR these past two years--I was somehow doing the Lord's work? 😉😉😉
Vast is a relative term. Note three things. 1) how much of this equipment consists simply of trucks--support vehicles. 2) this equipment was simply part of a military exercise. the potential combat effect of this equipment would not be negligible, but even this amount wouldn't be a game changer against Russia. 3) it's going BACK to the US. It's positioned to be loaded on ships LEAVING Poland.
And nothing the ECB and Yellen can do about it in the long run, if I understand Luongo. The article is talking about European Central Banks, not the Fed.
Game, set, and match Luongo. Even better no one can keep him out of the Miami Open.
"SOFR knocked out the Eurodollar because that was the Fed’s and New York’s ultimate goal; to replace the global rate for dollars with a domestic one where the capital would have to trade here. The globe takes its cues, not from what Europe or Hong Kong wants, but what America needs."
These are some of the most wonderful words I can remember reading in a long time. You don't have to be strictly MAGA to appreciate the implications of the U.S. (us) taking control of its own money supply again. Isn't that the way it should be? After all, we are the ones paying (investing) for the returns we get and the money we spend should be reflected in the degree of power we have (or should have in a Republic). Tell that to our politicians and they will only laugh but thank God that Jay Powell and his com-patriots on the Fed take that seriously and are on our side for the time being at least.
Luongo shares his insight and his views from a desire to use his own gifts for others' benefit - the same as you, Mark. God bless you both and many blessings and thanks to you both.
If, as Luongo relates, Powell is indeed pursuing a war for the American Dollar, he is doing a great service for this country. I hope we get to where such real heroism can be recognized. (Won't be under a current democrat occupied White House).
Now, do China & it's control mechanisms of US agencies, media and politicians. I wonder just how much the stated Peg of the Renminbi (yuan) to the Dollar relates in that buy-America 'relationship' the Chinese have pursued. (WRH)
Now if only our politicians and media had a clue and understanding about this and would being reporting it and educating the public. Heads would explode. Wouldn’t that be fun.
I'll suggest the politicians (particularly the bought-off ones) do have an understanding and the media is not interested in Truth so will remain in abject compliance with their masters. Reporting being out of the question, forget education - look at our current and ongoing crop of College 'graduates'. Those of us who value the Constitutional Government of our past may not have had the financial understanding or insight Luongo/Powell are revealing, we will learn and gain understanding. Problem is, (this reveals my sad lack of faith in the US populace), having a Tic-Tock account is of more importance to a huge Democrat voting block. Always my best regards sir! (WRH)
Correct, Wayne, as usual. Only the University of Life, Department of Hard Knocks will teach these kids anything. They will have to go through a lot of pain to get to the truth of reality. To be fair to them, it's the same for all humans. I learn not to speed when I get a hefty fine! Let's hope that most of the crazy youngsters we hear about are only a minority and that there are far more decent Gen Zers than we think.
It seems that aging is causing me to experience a particularly severe trauma: I'm becomin' more like my parents were... [intended in the good humor necessary for these times of course!].
It is easy to narrow focus to a specific target, such as the younger generations' behavior. Perhaps unfairly (as you suggest, we all go through life with similar basic processes), I think what hits me, knocks me a bit askew, is that our Gov't and pubic agencies are encouraging, teaching and enforcing so much of the debasement reported.
Don Surber's Substack post today addresses (alleged) comic Bill Maher stating good ol' Joe has returned our country to normal. Then, in listing today's "normal" Don highlights much of the debasement that in the past -if/when experimented with as a child- society's norms would provide the Hard Knock in the head allowing growth into a responsible, civil and honorable life.
Didn't mean to rant or go long in responding to your point. You were right-on and hope is seen in said Z'ers. Rebelling 'against the norm', when the norm is so full of today's junk, might mean a reversal to honorable behaviors... one can hope, right? Thanks for your kind and accurate note! (WRH)
Mark, as far as I know there are bunch of countries with variable/adjustable mortgage rates ONLY. For example Sweden or Poland. So how these rate hikes will work out for them? Can ECB can save them after LIBOR is dead???
EU authorities are pushing toward transition to a SOFR-like, "risk free" reference rate (EONIA), but, unlike LIBOR, EURIBOR doesn't have a fixed sunset date (yet), and may continue to be used in the EU as a fallback rate. That said, EURIBOR does not have the market heft that LIBOR once did to be insulated from global realities, so the ECB will not be able to save borrowers (and lenders) for long.
CORRECTION/EDIT: EONIA was replaced last year by what is now called the Euro Short-Term Rate (ESTR), which has largely the same effect in marking to actual market. My bad--should Google first.
Thanks!
I'm the wrong guy to answer that. However, my guess is the answer is no.
Who knew--in the mind-numbing tedium of converting my clients' LIBOR financings (and related swaps) to SOFR these past two years--I was somehow doing the Lord's work? 😉😉😉
Watch: Vast Expanse Of US Military Hardware Positioned At Polish Port
https://twitter.com/balt_security/status/1631977563240144898
Vast is a relative term. Note three things. 1) how much of this equipment consists simply of trucks--support vehicles. 2) this equipment was simply part of a military exercise. the potential combat effect of this equipment would not be negligible, but even this amount wouldn't be a game changer against Russia. 3) it's going BACK to the US. It's positioned to be loaded on ships LEAVING Poland.
Central Banks Are Suffering Staggering Losses The Higher Rates Rise
https://www.zerohedge.com/markets/central-banks-are-suffering-staggering-losses-higher-rates-rise
And nothing the ECB and Yellen can do about it in the long run, if I understand Luongo. The article is talking about European Central Banks, not the Fed.
All Greek to me but if it works, I’m for it. Causing me and family pain for purchase (ie., cars) but, we’ll work it out.
Most of this is above my head, but I hope Tom is right. Globalisation is definitely on the ropes.
This is wonderful, wonderful, wonderful news. The Lord works in mysterious ways indeed, lol!
Thanks for this article! It gives me hope that anyone is trying to stop Davos.
This is the best news I’ve read in the last 3-4 years.
Thank you.
Game, set, and match Luongo. Even better no one can keep him out of the Miami Open.
"SOFR knocked out the Eurodollar because that was the Fed’s and New York’s ultimate goal; to replace the global rate for dollars with a domestic one where the capital would have to trade here. The globe takes its cues, not from what Europe or Hong Kong wants, but what America needs."
These are some of the most wonderful words I can remember reading in a long time. You don't have to be strictly MAGA to appreciate the implications of the U.S. (us) taking control of its own money supply again. Isn't that the way it should be? After all, we are the ones paying (investing) for the returns we get and the money we spend should be reflected in the degree of power we have (or should have in a Republic). Tell that to our politicians and they will only laugh but thank God that Jay Powell and his com-patriots on the Fed take that seriously and are on our side for the time being at least.
Luongo shares his insight and his views from a desire to use his own gifts for others' benefit - the same as you, Mark. God bless you both and many blessings and thanks to you both.
And to think what are all those DAVOS NGO'S going to do for funding? SOROS & SCHWAB'S banks ?
My best to you Mark, and all your readers;
If, as Luongo relates, Powell is indeed pursuing a war for the American Dollar, he is doing a great service for this country. I hope we get to where such real heroism can be recognized. (Won't be under a current democrat occupied White House).
Now, do China & it's control mechanisms of US agencies, media and politicians. I wonder just how much the stated Peg of the Renminbi (yuan) to the Dollar relates in that buy-America 'relationship' the Chinese have pursued. (WRH)
Now if only our politicians and media had a clue and understanding about this and would being reporting it and educating the public. Heads would explode. Wouldn’t that be fun.
G' evening JK,
I'll suggest the politicians (particularly the bought-off ones) do have an understanding and the media is not interested in Truth so will remain in abject compliance with their masters. Reporting being out of the question, forget education - look at our current and ongoing crop of College 'graduates'. Those of us who value the Constitutional Government of our past may not have had the financial understanding or insight Luongo/Powell are revealing, we will learn and gain understanding. Problem is, (this reveals my sad lack of faith in the US populace), having a Tic-Tock account is of more importance to a huge Democrat voting block. Always my best regards sir! (WRH)
Correct, Wayne, as usual. Only the University of Life, Department of Hard Knocks will teach these kids anything. They will have to go through a lot of pain to get to the truth of reality. To be fair to them, it's the same for all humans. I learn not to speed when I get a hefty fine! Let's hope that most of the crazy youngsters we hear about are only a minority and that there are far more decent Gen Zers than we think.
G'day S'21!
It seems that aging is causing me to experience a particularly severe trauma: I'm becomin' more like my parents were... [intended in the good humor necessary for these times of course!].
It is easy to narrow focus to a specific target, such as the younger generations' behavior. Perhaps unfairly (as you suggest, we all go through life with similar basic processes), I think what hits me, knocks me a bit askew, is that our Gov't and pubic agencies are encouraging, teaching and enforcing so much of the debasement reported.
Don Surber's Substack post today addresses (alleged) comic Bill Maher stating good ol' Joe has returned our country to normal. Then, in listing today's "normal" Don highlights much of the debasement that in the past -if/when experimented with as a child- society's norms would provide the Hard Knock in the head allowing growth into a responsible, civil and honorable life.
Didn't mean to rant or go long in responding to your point. You were right-on and hope is seen in said Z'ers. Rebelling 'against the norm', when the norm is so full of today's junk, might mean a reversal to honorable behaviors... one can hope, right? Thanks for your kind and accurate note! (WRH)
Absolutely