Monthly Archives: November 2010

Peru to Sell First 40-Year Bond

Posted on November 9, 2010 by macromon

Wow! Seems like just yesterday Peru’s hard currency debt was trading at 8 cents.  Actually, it was 1993.  Remember President Alberto Fujimora?   Bloomberg writes, Peru plans to sell 40-year debt in the international market for the first time as … Continue reading →

Posted in Bonds, Commodities, Sovereign Risk | Tagged , | Leave a comment

Dilma Rousseff – “The last time there was a series of competitive devaluations…it ended in world war two.”

Posted on November 9, 2010 by macromon

These are harsh words from Brazil’s president-elect Dilma Rouseff, who was speaking at a joint press conference with outgoing president, Luiz Inacio Lula da Silva last Wednesday.  She joins a chorus of world leaders condemning U.S. monetary policy and sets … Continue reading →

Posted in BRICs, China, Commodities, Currency, Gold, Monetary Policy, Policy, Politics | Tagged , , , | 1 Comment

G20 Risk: “China says G20 should monitor US Fed” – SMH

Posted on November 9, 2010 by macromon

Though the ugly bond auction got the headline, there’ s no doubt part of this afternoon’s reversal in many key stocks and commodities was partially caused by concern the G20 may turn into a fiasco as members use the occasion … Continue reading →

Posted in Commodities, Equities, Gold | Tagged , , , , | Leave a comment

Inside Job

Posted on November 8, 2010 by macromon
Posted in Equities, Fiscal Policy, Monetary Policy, News, Policy, Politics | Tagged | 1 Comment

Quote of the Day: “Although insolvent, Ireland is still liquid…”

Posted on November 8, 2010 by macromon

Morgan Kelly writes in today’s Irish Times, As a taxpayer, what does a bailout bill of €70 billion mean? It means that every cent of income tax that you pay for the next two to three years will go to … Continue reading →

Posted in Black Swan Watch, Fiscal Policy, Geopolitical, Sovereign Risk | Tagged , , | Leave a comment

Chart of the Day: Sovereign Debt and Capital Flight

Posted on November 8, 2010 by macromon

We thought this to be a very informative chart, which shows the percentage of a country’s sovereign debt held by domestic and foreign residents.   In general, the more a country’s debt is held by foreigners the higher the risk of … Continue reading →

Posted in Black Swan Watch, Bonds, Commodities, Credit, Currency, Fiscal Policy, News, Policy, Sovereign Risk | Tagged , , | Leave a comment

QE2, Trade Deficits, and the G20

Posted on November 7, 2010 by macromon

Given next week is the G20 in Seoul and the U.S. is pressing to address trade balances,  we thought the following chart from the Congressional Research Service is quite timely.  Trade deficits are big drag on GDP (see chart below)  … Continue reading →

Posted in China, Currency, Monetary Policy, Politics, Sovereign Risk | Tagged , , | Leave a comment

All Things (-) Correlated: S&P500 and the Midterm Elections

Posted on November 6, 2010 by macromon

Ask almost anyone if they thought a two-year bull market in stocks would help a new President during his first midterm Congressional elections and the answer would be a resounding YES!.  That is why we were so surprised to discover … Continue reading →

Posted in Politics | Tagged , , | 1 Comment

Quote of the Day

Posted on November 6, 2010 by macromon

I predict that the unemployed in this country who will face the inevitable inflation of this money-printing will find little joy in watching Indonesian stocks rise further.  – Howard  Simons

Posted in China, Commodities, Currency, Monetary Policy | Tagged , , | Leave a comment

Bank of Japan Outlines Nikkei ETF Purchases

Posted on November 4, 2010 by macromon

After yesterday’s FOMC action and Ben Bernanke’s Op/Ed in the Washington Post essentially stating the Fed is targeting the stock market, we now get the Bank of Japan’s outline for asset purchases. Next week the BoJ begins buying Nikkei and … Continue reading →

Posted in Black Swan Watch, Commodities, Gold, Monetary Policy, Policy | Tagged , , | 1 Comment