In today’s podcast, Patrick Nipper of Renaissance Macro (a.k.a. RenMac) cautioned listeners that a “global overhang of draining liquidity” is weighing on the markets and that when you look at the aggregate picture of global central banking balance sheets, liquidity conditions are now negative on a year-over-year basis.
But what about the recent monetary “bazooka” launched by the European Central Bank, you ask?
According to Nipper, what’s happening in China—particularly the continued drawdown of their foreign exchange reserves—is counteracting the efforts of other central banks to keep liquidity conditions favorable.
