Monthly Archives: July 2011

Is Gold Money?

Posted on July 13, 2011 by macromon

During today’s Congressional testimony Fed Chairman, Ben Bernanke, was confronted by Rep. Ron Paul with the question, “Is gold money”?  (see video below)  The Chairman answered, “no” and went on to say the reason why central banks hold gold is … Continue reading →

Posted in Black Swan Watch, Crude Oil, Currency, Dollar, Gold, Monetary Policy, Video | Tagged , , , | 15 Comments

Gold’s Perfect Storm? Nears All-time Closing High

Posted on July 12, 2011 by macromon

Gold is creeping higher as many believe it is the only place to hide.  Cash gold is near its all-time closing high of 1563.20 on April 29th and closing in on its May 2nd intraday high of 1575.10.   We find … Continue reading →

Posted in Commodities, Dollar, Euro, Gold, Sovereign Risk | Tagged , , , | 4 Comments

Bank Exposure to Domestic Sovereigns

Posted on July 11, 2011 by macromon

Here at the Global Macro Monitor we perceive a rapidly changing financial landscape.  The concept of risk-free is being redefined as we write and analysts are now forced to look at the systemic risk caused by a banking system’s exposure … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Euro, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 2 Comments

Quote of the Day: Brussels, We Have a Problem

Posted on July 11, 2011 by macromon

According to current banking regulations, sovereign credits are considered “risk-free.”   This means that banks can take on as much sovereign credit risk as they like without setting aside any capital.  Under such a structure, selling short CDS protection is akin … Continue reading →

Posted in PIIGS, Policy, Quote of the Day, Sovereign Debt, Sovereign Risk | Tagged , , | Leave a comment

Week in Review: Tremors of a Major “Euroquake”

Posted on July 10, 2011 by macromon

Not much to say as the employment numbers dumped cold water on the equity rally.  The markets, especially Apple,  did show some impressive resilience on Friday, but we’re still maintaining equities are at the top end of their range.   … Continue reading →

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Global Trend Indicators

Posted on July 10, 2011 by macromon

(click here if tables are not observable)

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The Weekend Read: Reality Meets Perception

Posted on July 8, 2011 by macromon

Higher energy and food prices are crowding out consumer demand for other items, and the market consensus is that QE2 has proven to be counter-productive. Unable to concede this, Mr. Bernanke nonetheless seems determined to have it both ways, remarking … Continue reading →

Posted in The Weekend Read, Uncategorized | Tagged , , , , , | Leave a comment

When Apple Leads….

Posted on July 7, 2011 by macromon

Apple is up almost 15 percent off  the June 20th low of 310 and leading the overall market higher.  This is the stock’s best move since last September.  We’ve posted several pieces on Apple’s market leadership (click here).  With no … Continue reading →

Posted in Apple, Black Swan Watch, BRICs, Budget Deficit, Charts, Economics, Sovereign Debt, Sovereign Risk | Tagged , , | 2 Comments

Market Price Action and “Retrofitting the Fundamentals”

Posted on July 5, 2011 by macromon

Amazing how all is well with global economy after a 7 percent rally in the S&P500.  We have a very smart friend who constantly reminds us that many, if not, most,  “retrofit” fundamentals to market direction.   If markets are going … Continue reading →

Posted in Economics | Tagged , | 1 Comment

Food Fight

Posted on July 4, 2011 by macromon

Check out the BLS Foodstuffs sub-index which is now right at key support.  The better than expected USDA report hammered the grains last week and traders now have to decide either to stay with the Ag trade or dump their … Continue reading →

Posted in Charts, Commodities, Food Prices | Tagged , , , | Leave a comment