Can you bail out a country by extending it more credit? Can a distressed entity borrow itself into solvency? The answer to both questions is, yes, but its hard. Greece seems to be expected to do so. In 2014 Greece has managed a primary surplus and is expected to repeat this performance in 2015. 1.

QE in the US seems to have worked whereas elsewhere it has either failed to take hold or has not been started. Yet even the US, QE has had less than stellar results requiring three rounds, with a twist and the last one was unlimited as well. Why is QE not very effective? To understand

Central Bank Large Scale Asset Purchases, by which is meant the buying of government or agency debt, is intended to ensure demand for such bonds and to keep borrowing costs low for the government and any other debt issuer whose cost of debt is correlated or benchmarked to government bond yields. Large Scale Asset Purchases,

Gold. To determine the value of an object one has to determine its usefulness. To determine the price of an object one has to understand the convolutions of the collective human mind.

Themes: Risk On and Pray Hard.   Rates and Credit: Long US treasuries at the long end. 30 year and 10 year USTs remain attractive relative to short end. Expect further curve flattening. Overweight / Long China equities. Despite slowing economic growth, earnings growth remains robust and the PBOC will likely be expansionary and China