Category Archives: Monetary Policy

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

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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Paradox of Zero Interest Rate Monetary Policy: Loose is Tight

Posted on October 6, 2010 by macromon

Let us take a moment to say we’re thankful for central bankers!  They have an extremely difficult job, make monumental decisions under great pressure and uncertainty, only to be constantly second guessed by a crowd of ignoramuses, including us! Someday … Continue reading →

Posted in Bonds, BRICs, Credit, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , | 1 Comment

Japan’s Currency War? Nonsense!

Posted on October 5, 2010 by macromon

Take a look at a 30-year chart of the Yen to see if Japan is trying to weaken its currency in a “beggar thy neighbor” policy.  The Yen has appreciated 50% against the dollar since 2007 and is at an … Continue reading →

Posted in Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , | Leave a comment

Fed, ECB throwing world into chaos – Stiglitz

Posted on October 5, 2010 by macromon

These are the headlines from an earlier Reuters report.   Joe Stiglitz is one smart dude (OSD) and was the World Bank’s chief economist during the 1997 Asian Financial Crisis and 1998 Russian Debt Default.   He says the ultra-loose monetary policy … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , , , , , | 3 Comments

Central Banks Gone Wild: Paulson Says Gold Price to $4,000

Posted on October 5, 2010 by macromon

The Gold fear trade is back on.  That is, traders and investors fear they are not long enough.  The Bank of Japan really got the party started as Bloomberg reports, “The unexpected decision by the Japanese central bank yesterday to … Continue reading →

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Breakup of the Euro isn’t unthinkable – Peer Steinbrueck

Posted on October 4, 2010 by macromon

Peer Steinbrueck, who served as finance minister under Angela Merkel from 2005 to 2009, has published, Unterm Strich (“On Balance”), his insider view of the financial crisis. It looks to be a fascinating read.  Bloomberg has a great first look: … Continue reading →

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

MS Poll: 53% Believe US Debt Crisis By 2012

Posted on October 4, 2010 by macromon

An interesting chart from the Business Insider of the results of a Morgan Stanley survey of 150 clients at a recent investment conference.   Shockingly, more than 50% of the investors polled believe the US will experience a sovereign debt … Continue reading →

Posted in Black Swan Watch, Bonds, Credit, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , | Leave a comment