Category Archives: Policy

Nonlinear Thinking: Synthetic Palladium

Posted on January 3, 2011 by macromon

Linear thinking dominates economics and finance and was one of root causes of the recent financial crisis.  It is clear to us, the economy and financial markets are nonlinear systems.  In hindsight,  the collapse of the financial system showed risk … Continue reading →

Posted in Apple, Clean Tech, Commodities, Economics, Policy, Rare Earth Elements, Technology | Tagged , | Leave a comment

Outrage Grows Over Public Sector Unions – NY Times

Posted on January 2, 2011 by macromon

We’ve posted how underfunded state and local pensions are going to be a huge economic and political issue in 2011.   Go no further than the New Year’s Day NY Times article, Across the nation, a rising irritation with public … Continue reading →

Posted in Muni Bonds, Policy, Politics, Sovereign Risk | Tagged , , , | 5 Comments

Global Corporate Tax Rates

Posted on December 30, 2010 by macromon

Lots of chatter the President is going to propose  a corporate tax cut in his State of the Union speech.    Corporations hold billions off-shore and maybe it will nudge some of it back into domestic capital expenditures or hiring? … Continue reading →

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Ukraine Parliamentary Procedure

Posted on December 28, 2010 by macromon

Let’s play Hardball!   Looking forward to this year’s “Thrilla on Capitol Hilla” between Chairman Ben Bernanke and Congressman Ron Paul, the new Chairman of the Domestic Monetary Policy Subcommittee of the House Financial Services Committee.  Our bet Bernanke will play … Continue reading →

Posted in Monetary Policy, Policy | Tagged , , | 2 Comments

The Great Monetary Policy Swan Dive

Posted on December 28, 2010 by macromon

Great chart from the OECD illustrating the dramatic actions taken by the world’s major central banks during the financial crisis.   The massive collapse in short-term interest rates has reduced income of savers and the splash of the heavyweight central banks … Continue reading →

Posted in Bonds, BRICs, Charts, China, Monetary Policy, Policy | Tagged , , , , | 1 Comment

George Will on Coming War Over Public Pensions

Posted on December 26, 2010 by macromon

Be sure to catch George Will’s Washington Post piece on the coming battle in the new Congress over state and local public pensions.   In early December, we posted the report by James Pethokoukis of a secret Republican plan to push … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Fiscal Policy, Muni Bonds, Muni Market, Policy, Politics | Tagged , , | 1 Comment

Europe’s Big Fail…

Posted on December 15, 2010 by macromon

One lesson we have learned during the financial crisis is that a country’s banking system is an indirect liability of the sovereign.  That is, unless the government is willing to allow banks to fail and let the domestic financial sector … Continue reading →

Posted in Black Swan Watch, Budget Deficit, Euro, Fiscal Policy, PIIGS, Policy, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment

Fed Ownership of the U.S Treasury Curve

Posted on December 14, 2010 by macromon

Here’s an interesting chart we threw together showing the Fed’s ownership of Treasury securities maturing in each year on the curve.  There are no bonds maturing in 2032-35 due to the temporary discontinuance of the 30-year earlier in the millennium, … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Credit, Economics, Fiscal Policy, Monetary Policy, Policy, Politics, Sovereign Debt, Sovereign Risk | Tagged , , , , | 9 Comments

Heads Up: Bernanke on 60 Minutes

Posted on December 3, 2010 by macromon

(CBS) In a rare and frank interview, Federal Reserve Chairman Ben Bernanke talks to “60 Minutes” correspondent Scott Pelley about the troubled economy and the measures the central bank has taken to improve it for a segment to be broadcast … Continue reading →

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Economies of Scale: Eurozone vs American States

Posted on December 1, 2010 by macromon

Great graphic from the Wall Street Journal’s Real Time Economics comparing the size of Eurozone economies to those of selected American states.  Here’s their intro, To get a sense of scale, Real Time Economics compared the 2009 output of goods … Continue reading →

Posted in Economics, Euro, Policy | Tagged , | Leave a comment