US mulls infrastructure bank; US factories raise output; China's plan to cut coal output goes awry; Indonesia's stability under threat; UST 10yr yield at 2.22%; oil flat, gold flat; NZ$1 = 70.8 US¢, TWI-5 = 76

"For example, those who view themselves as "insightful" will find that their motives for both self-verification and self-enhancement encourage them to seek evidence that other people recognize their insightfulness"

https://en.wikipedia.org/wiki/Self-verification_theory

you know who you are.....

http://www.bloombergquint.com/global-economics/2016/11/16/fed-s-kashkar…

USD reached a 13 year high overnight. Roubini wrote in February 2009, about the 'mother of all carry bubbles', and the unwind that would inevitably occur at some point. Anyone believing that Auckland house prices are immune , because they believe themselves to be geniuses should have a read some time. Next week Auckland listings on Trade me should hit 10000.

American factory output rose for a second straight month in October from gains in business equipment, construction equipment and 'materials', according to the latest Fed survey.

Hmmmm...

.. total industrial production in October was 0.9 percent lower than its year-earlier level. Capacity utilization for the industrial sector edged down 0.1 percentage point in October to 75.3 percent, a rate that is 4.7 percentage points below its long-run (1972–2015) average.

While that is an indication of the current weakness and its frustrating stubbornness, it also expresses the growing costs of being so far behind from where the economy “should” be, or at least what it would have been had the Great “Recession” actually been a recession. As a reflection of just how bad this depression has been for consumers above all other parts, the production of consumer goods is only 6.6% (total) above the trough registered in June 2009, more than seven years ago! That remains more than 9% less than the peak of February 2007, a comparison that is agonizingly approaching a full decade. It cannot be a recovery or even business cycle where production for consumers is not even halfway back after so many years. Read more

It is going to be interesting watching what happens with trade between the USA and China.
2015 exports to China 116 billion imports 483 billion
You can understand why the States are concerned, but if they slash their imports would it push an already wobbly China over the edge?

Australia should follow India’s lead and scrap its biggest bank notes, UBS Group AG said.

“Removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS analysts led by Jonathan Mott said in a note to clients on Monday. Benefits would include reduced crime and welfare fraud, increased tax revenue and a “spike” in bank deposits, he said. Read more

Is this a case of fiddling while Rome burns?

Circulation currency at AUD 72,259 millions is a small fraction (~3.62%) of total deposits recorded at AUD 1,998,197 millions.

Admittedly, this fraction is more than double the 1.71209% level reported for NZ. Is it possible that cash dedicated to clearing recreational pot sales (now legal in California) are a magnitude greater than here?

Josie Pagani with some very pertinent observations on the US election and its implications for our political scene.
"Bernie and Trump are both right that the gains of globalisation have not been fairly shared with the people who have paid the highest price, and the establishment has given up even trying to make gains for them. But Trump will never be able to deliver on his promises to that community because his diagnosis is wrong. Foreigners are not really stealing our wealth. The one per cent is.

Here's the crisis: if you are working for a living, and you are not in an elite middle class job, you are getting less and less likely to vote Labour or Democrat anywhere in the world. These voters are motivated by issues like law and order, immigration and wages. Trump and Brexit managed to link them all. The left hasn't developed a narrative and economics that makes a better, more obvious emotional connection with these voters. Until it does, it'll keep losing."
http://www.nzherald.co.nz/politics/news/article.cfm?c_id=280&objectid=1…

you rarely come across a 100 dollar note in Australia ,you certainly dont get them out of an ATM,that is why they are called green ghosts.so they probably are all in the hands of tax-evaders and crims

Re infrastructure Bank story , I have signed up for Trumps tweets , better to get it straight from the horses mouth because I can no longer believe the media which is all over the place.

Trump is now in every print media , every news broadcast , and continues to have every event on the planet linked in some way to him

I have signed up for his tweets , because I am getting conflicting opinions from every media source , and I cant see the wood for the trees

Economists for decades thought that money was money, end of story. In the real world, that just isn’t the case, and for longer than I have been in this business money had been transforming through banking into different conceptions that we (those who bother to look past the “settled science” of QE and Economics) still haven’t fully discovered or mapped out. Alan Greenspan’s June 2000 admission should finally sink him and all the rest who have followed in his ideological footsteps. Read more and more