India: The rise of the yogis

We wish Uttar Pradesh's new PM much success in improving the lives of his citizens.

Twinkie defense

From today's WSJ: Back from bankruptcy and liquidation, Hostess Brands epitomizes the US manufacturing renaissance:




Sales of Hostess snack cakes are expected to reach 2 billion units this year.

Innovative new products are the key:



To enhance the value proposition, creative chemical rejiggering has extended shelf life from 26 to 65 days.

"Ho Ho.

This wouldn't be happening if Gaddafi were still alive.

From The Economist:

Kudos to Goldman Sachs for knowing how to make money on the election

A friend forwarded this chart. Since the market is already pricing in a Clinton victory, shorting NJA (non-Japan Asia, in GS lingo, not "National Jousting Association" as the Acronym Finder says) is recommended. Shorting the Mexican peso is also indicated but with a lower level of potential gain. This trade would apply even if Trump lost the election. This reminds us that, in the world of the trading of financial instruments, there is no good or bad, no right or wrong, only opportunity. Investors should never forget this.

Big Picture: Central Bank balance sheet growth accelerates YTD: Now at $21.4 trillion

A new flood of liquidity is being unleashed. Where will it go? (below is from the Bloomberg article)

Meanwhile, while we were thinking about the election, the trade war had already begun.

From "US Steel Could Rise. . ." in Barron's this weekend. (The Mr. Longhi quoted is president of US Steel.)

"The-Policy-That-Must-Not-Be-Named" is finally unmasked.

It's "Monetization."  Japan has finally abandoned the pretense that central bank's printing of money to fund the government is a temporary measure designed to control the level of interest rates.  Will the markets find this candor "refreshing?"

from A6 in today's Wall Street Journal: