Category Archives: Currency

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 →

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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

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‘Firewall needed’ to prevent cash surge – China Daily

Posted on November 4, 2010 by macromon

We have written in numerous posts about John Bull’s “Tsunami of Dollars” flooding into the emerging markets.   China Daily writes, China should “set up a firewall” as uncontrolled dollar printing in the United States will drive more liquidity into … Continue reading →

Posted in BRICs, China, Commodities, Credit, Currency, Equities, Gold, Monetary Policy | Tagged , , , | Leave a comment

GIDDY-FRICKIN-UP!

Posted on November 4, 2010 by macromon

Was it Bernanke’s piece in today’s Washinginton Post that a higher stock market is the economy’s healing balm? This approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose and long-term interest … Continue reading →

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Ron Paul to Chair Monetary Policy Subcommittee

Posted on November 4, 2010 by macromon

That is what Dave Weigel over at Slate is saying, Sometimes all you need is the headline. Ron Paul is slated to run this subcommittee, giving him some actual power and a megaphone on the issue dearest to his heart. … Continue reading →

Posted in Currency, Monetary Policy | Tagged , , | 1 Comment

“Bernanke… is fundamentally misguided” – Newt Gingrich

Posted on November 2, 2010 by macromon

We are wondering out loud if a Tea Party/Republican rout with both houses of Congress changing hands could blindside markets with a huge short covering rally in the dollar?  QE2 needs to be large enough to offset the positive dollar … Continue reading →

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Sovereign Debt: Not So Risk-Free

Posted on November 1, 2010 by macromon

Joseph Cotterill over at FT Aphaville has a great post on how some European corporate bonds are trading through their sovereigns.   Not surprising it taking place in countries without access to a printing press to monetize deficit spending, Markit pointed … Continue reading →

Posted in Black Swan Watch, Bonds, Currency, Fiscal Policy, Geopolitical, Monetary Policy, Policy | Tagged , , , | Leave a comment

Gold and the QE War?

Posted on October 31, 2010 by macromon

This is going to an interesting week for gold.  We expect some currency fireworks as the Bank of Japan draws a line in the sand for the Yen around the 80 level.  Will the Japanese respond to QE2 with more … Continue reading →

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Robert Prechter’s 100 Predictions – 7 years later

Posted on October 28, 2010 by macromon

Here are 100 predictions that Elliot Wave Theorist, Robert Prechter, made in October 2003.  As my econ professor once said, “if you’re going to forecast, forecast a lot and forecast often.” No mention of the rise of Apple or the … Continue reading →

Posted in Black Swan Watch, China, Commodities, Currency, Equities, Geopolitical, Policy, Politics, Sovereign Risk, Whales | Tagged , | 10 Comments