Monthly Archives: October 2010

Geithner’s Naughty List?

Posted on October 10, 2010 by macromon

Look no further than the Economist’s Big Mac Index to understand who is on the Treasury’s Naughty List.  It uses July exchange rates,  so a bit dated as the most recent currency moves are not included. Interestingly,  Japan and Brazil … Continue reading →

Posted in BRICs, China, Commodities, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | 1 Comment

Rio’s $5.00 Big Macs and the Danger of Dutch Disease

Posted on October 10, 2010 by macromon

Things are getting expensive in Brazil, especially the price of a Big Mac!  Last time we were in Brazil, Big Mac’s were offered at the equivalent of $US.70 at the same time they were bid at US$2.75 in New York. … Continue reading →

Posted in BRICs, Commodities, Currency, Equities, Monetary Policy, Sovereign Risk | Tagged , , , | 3 Comments

Picture of the Day: The Wealth of Nations

Posted on October 10, 2010 by macromon

Great shot (magnified 22x) of a wood ant holding a microchip in its teeth.  This picture symbolizes, at least to us, the recipe for the “Wealth of Nations:”  1) the work ethic of the ant;  2) the technology of the … Continue reading →

Posted in Geopolitical, News, Uncategorized | Tagged , , | 1 Comment

7th-Inning Stretch Reading

Posted on October 8, 2010 by macromon

A little something to read during the 7th-inning stretch.  Go Giants! China China’s economy buoys super-spenders – CNTN China’s household wealth to double by 2015 – Reuters China Sold the Most Japanese Debt on Record in August – MoneyNews.com Commodities Commodities: … Continue reading →

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The Store of Value Trade

Posted on October 8, 2010 by macromon

Commodity prices closed at two year highs.  Bloomberg writes, The Reuters/Jefferies CRB Index of 19 raw materials jumped as much as 2.7 percent to 295.17, the highest level since Oct. 15, 2008. Every price advanced. Wheat, soybeans and corn led … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Monetary Policy, News, Policy, Politics | Tagged , , , | Leave a comment

Paradox of Zero Interest Rate Monetary Policy: Loose is Tight

Posted on October 6, 2010 by macromon

Let us take a moment to say we’re thankful for central bankers!  They have an extremely difficult job, make monumental decisions under great pressure and uncertainty, only to be constantly second guessed by a crowd of ignoramuses, including us! Someday … Continue reading →

Posted in Bonds, BRICs, Credit, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , | 1 Comment

Japan’s Currency War? Nonsense!

Posted on October 5, 2010 by macromon

Take a look at a 30-year chart of the Yen to see if Japan is trying to weaken its currency in a “beggar thy neighbor” policy.  The Yen has appreciated 50% against the dollar since 2007 and is at an … Continue reading →

Posted in Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , | Leave a comment

Fed, ECB throwing world into chaos – Stiglitz

Posted on October 5, 2010 by macromon

These are the headlines from an earlier Reuters report.   Joe Stiglitz is one smart dude (OSD) and was the World Bank’s chief economist during the 1997 Asian Financial Crisis and 1998 Russian Debt Default.   He says the ultra-loose monetary policy … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , , , , , | 3 Comments

The Three Legs of the Q4 Melt-up

Posted on October 5, 2010 by macromon

1)  Under allocated investors… 2)  Expectation of a Republican victory in the  November election… 3)  The Flood of Liquidity unleashed by ultra-loose global monetary policy… “The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around … Continue reading →

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Central Banks Gone Wild: Paulson Says Gold Price to $4,000

Posted on October 5, 2010 by macromon

The Gold fear trade is back on.  That is, traders and investors fear they are not long enough.  The Bank of Japan really got the party started as Bloomberg reports, “The unexpected decision by the Japanese central bank yesterday to … Continue reading →

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