The “tail” risk of two Eurozones that wags the dogs ...

We have been saying for years now that Germany is sucking the wind out of Europe. But, then again that should be a surprise to exactly no one who ever bothered to consider the initial structure of the so-called common monetary union. It wasn’t so common and it sure wasn’t structured for a lasting union.

The Post-FOMC Minutes, Pre-Turkey Day, Data Dump

Here's the data dump:

• Weekly jobless claims have fallen to a level not seen since July 2008. That's good.
• Durable goods orders fell by -3.3% versus expectations for no change. That's bad.
• The year-over-year PCE price index a tad lower than expectations; core PCE price index at record low. Where's the inflation?
• Consumer spending a tad higher than expectations: +0.3% versus +0.2%. That's decent.
• US personal saving rate a tad higher than expectations, up +0.1% from September to October. That's decent.
• US personal income rose by 0.5%. That¡¦s good.

Artillery Fire Setting the Stage for an Economic Bombshell from the Fed

North Korea fired missiles into South Korea today.

The markets are a bit shaken up – the Korean won is down more than 3%; the US dollar is the recipient of some safe-haven flow; the S&P 500 futures are down about 1% at writing.

Last week we mentioned that the risk-bid for the US dollar – a sustained move higher for the buck based on a dramatic shift in consensus sentiment – was very much in play considering the Ireland & Co. fiasco, plus the outlook for China to really tighten down on its major growth drivers in an effort to stem overheating.

Sick and tired of “sanction of the victim”

“It is a moral crime to give money to support ideas with which you disagree. It is a moral crime to give money to support your own destroyers.”

Ayn Rand

Is it a stretch to say the Chinese wish to destroy the United States? Maybe! But it isn’t a stretch to say that China wants to become the primary global economic and military power in the world. It is why the G-20 was so fresh with irony. We have China and Germany teaming together for the “sanction of the victim” -- the United States. Even though it is US liquidity that is keeping both their economies afloat, now that Germany has become attached at the Chinese hip.