Category Archives: Commodities

Beijing’s $2.18 Big Mac and $1,400 GOLDen Arches?

Posted on October 14, 2010 by macromon

The Economist updated their Big Mac Index, which measures currency misalignments based on purchasing-power parity.  We just used the Big Mac Index this past weekend in our recent posts,  Rio’s $5.00 Big Macs and Geithner’s Naughty List.   Here is what … Continue reading →

Posted in China, Commodities, Gold, Politics | Tagged , , , | 1 Comment

Krugman’s Dangerous Misreading of the Bond Market

Posted on October 14, 2010 by macromon

During his Sunday appearance (click for interview) on This Week With Christiane Amanpour, Paul Krugman spoke the words that make us very uncomfortable. Responding to French finance minister Christine Lagarde’s fiscal austerity and Alan Greenspan’s caution about further stimulus, Krugman … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Equities, Gold, Policy, Politics, Sovereign Risk | Tagged , , , | 2 Comments

“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 →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Credit, Currency, Monetary Policy, Policy, Sovereign Risk | Tagged , , , | Leave a comment

Apple Closes Over $300

Posted on October 13, 2010 by macromon

Apple closed over $300 today and is now worth close to $275 BN.   How big is Apple? Its market cap is larger than 150 of the 183 countries monitored by the IMF.  This is the most important company and … 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 →

Posted in Bonds, BRICs, Commodities, Credit, Currency, Equities, Gold, Monetary Policy, News, Policy, Sovereign Risk | Tagged , , , , | Leave a comment

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

Let the year-end chase begin

Posted on October 11, 2010 by macromon

Great heat map of the ETF space YTD performance.   Precious metals, real estate, Hong Kong, India, and some selected Asian ETFs have been been on fire this year.  Rather than chasing the winners,  under invested capital will most likely be … Continue reading →

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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

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 →

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