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Inflation Comes for the Profligate


Reflecting these concerns, the yield on the 10-year Treasury note, while still low, has risen meaningfully of late, to about 1.4 percent from 0.7 percent six months ago. This move has imposed serious losses on anybody who bought long-term Treasuries last summer and held them. The price of the iShares Treasury Bond ETF, for example, is down about 18 percent since the beginning of August.
In contrast to the views just quoted, Summers observes “administration officials’ dismissal of even the possibility of inflation.” Who is right, the investors or the politicians? Whose assessments of inflation risk do 
you believe? Politicians may be expected to deny an economic result that would get in the way of their intense desire to spend newly printed money. ....

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30Dec2020 Market Close: Wall Street Closed With Modest Gains With 1 Trading Day Remaining In 2020, DOW Closed Up 74 Points, Nasdaq At +0.2%, US Dollar Slips To 89.65, Bitcoin Higher At 28777


Dow rises for the fourth time in five days, ekes out record closing high (SPY +0.1%). Dollar dumps, Bitcoin jumps, and pending home sales slide.
The Market in Perspective
Here are the headlines moving the markets.
Greek Shipowners Easily Evade Venezuela Oil Sanctions
In January 2019, the Trump administration imposed sanctions on Venezuela s oil shipping sector in an ongoing bid to force President Nicols Maduro from power. The sanctions deepened Venezuela s already severe humanitarian crisis leading to runaway inflation and widespread fuel shortages. But the beleaguered nation can somewhat now breathe a sigh of relief after maritime intelligence firm Lloyd s List reported that an Aframax tanker has loaded a third crude cargo destined for China via a ship-to-ship transfer five months after being sanctioned ....

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