Category Archives: BRICs

Rousseff Promises Continuity of Brazil’s Economic Policy

Posted on October 31, 2010 by macromon

With almost all the votes counted, Dilma Rousseff was elected Brazil’s first female president, with 56% of the votes versus 44% for her opponent, Jose Serra of the Brazilian Social Democrat Party.    The Miami Herald reports, Dilma Rousseff, a former … Continue reading →

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The Yoke is Hard and the Debt Burden is Heavy

Posted on October 30, 2010 by macromon

We found this table from Brookings very interesting.  The net public debt per worker of the Advanced Economies in the G20 has increased from US$33K in 2007 t0 US$50.2 in 2010, an increase of 50 percent and projected to grow … Continue reading →

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Chart of the Day – Yield Seekers Go Parabolic

Posted on October 28, 2010 by macromon

“John Bull can stand many things, but he can’t stand two zero percent.” We have written about yield seeking capital flows, the currency wars, and zero interest rate, monetary policy, but nothing illustrates the issue better than this chart of … Continue reading →

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Rare Earth Day 3.0

Posted on October 27, 2010 by macromon

The Rare Earths continue to rock today in a down market as the story unfolds.  Germany announced yesterday the rare earth supply shortage is starting to hit their industrial base.  The Chinese canceled a three-way high level meeting with Japan … Continue reading →

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Did the Chinese Drop a Rare Earth Trade Bomb?

Posted on October 20, 2010 by macromon

Call us paranoid, but what would you conclude from the following headlines: Oct. 15:  U.S. launches trade investigation into China’s green tech sector – Xinhua Oct 19:  China to limit exports of ‘rare earth’ minerals vital to energy tech – … Continue reading →

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Fed creating “grave distortions” – Brazil Central Bank

Posted on October 18, 2010 by macromon

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading →

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Chinese Solar Spanked on US Trade Rep Announcement

Posted on October 15, 2010 by macromon

Holders of Chinese solar stocks got a little taste of what a trade war could feel like.  Trina Solar fell more than 9 percent as U.S. Trade Representative, Ron Kirk, announced his office has launched an investigation into the Chinese … Continue reading →

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“All that liquidity ends up not where it is supposed to be…”

Posted on October 13, 2010 by macromon

Great CNBC interview (click for video) with British historian, Niall Ferguson.  It’s worth the 5 minutes of your time.  We’re amazed how well Ferguson understands the global economy and articulates the risks better than many trained economists.   Money quotes: “There … Continue reading →

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Rising Tide (of liquidity) Lifts All Boats

Posted on October 12, 2010 by macromon

Great chart from Active Trader of the S&P5oo correlation with other markets.  Have you noticed recently that all markets are moving together?  U.S. Treasuries, domestic and foreign stocks, Greek Bonds, EM Debt, commodities, and foreign currencies all in lockstep? This … Continue reading →

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Europe’s Ricardian Equivalence vs America’s Keynesianism

Posted on October 11, 2010 by macromon

We thought this to be the most interesting chart of the recently released World Economic Outlook from the IMF.  Japan’s 2011 public sector funding requirement is a stunning 60 percent of GDP, which includes the rollover of maturing debt equivalent … Continue reading →

Posted in Bonds, BRICs, China, Commodities, Credit, Currency, Monetary Policy, Politics, Sovereign Risk | Tagged , , , , , , | 7 Comments