By Michael Every of Rabobank
Man of La Manchin(a)
“To dream the impossible dream; To fight the unbeatable foe; To bear with unbearable sorrow; To run where the brave dare not go
To right the unrightable wrong; To love pure and chaste from afar; To try when your arms are too weary; To reach the unreachable star
This is my quest to follow that star; No matter how hopeless, no matter how far; To fight for the right; Without question or pause; To be willing to march; Into hell for a heavenly cause
And I know if I'll only be true; To this glorious quest; That my heart will lie peaceful and calm; When I'm laid to my rest
And the world will be better for this; That one man, scorned and covered with scars; Still strove with his last ounce of courage; To reach the unreachable star; The fight the unbeatable foe; To dream the impossible dream!”
That seems to be the mood music at the White House; and the IMF; and the World Bank; and the Fed, and in fact most central banks. All of them are busy building back better-ly. Ambitious global tax plans are on the table to wipe tax havens off them; US spending plans are being pushed; and Treasury Secretary Yellen is talking about “labor vs. capital”: perhaps she will soon add “M > C > MP > C+ > M+” to underline how the economy actually works, which none of the neoclassical models at the Treasury or the Fed do?
Regardless, US yields are heading lower, the US dollar is heading down,...