That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]QE3 Still an Option
April 26, 2012 By Leave a Comment
Good day, and welcome to the last Thursday in April. As Chuck mentioned, I’ll be steering the ship today while he travels to Florida for some conferences, so the call to the bullpen has been made. All in all, it was a fairly quiet day, and if I had to make a call one way or the other, I would have to say Wednesday turned out to be a risk-on type of day. While the U.S. earnings season has definitely fueled the risk on campers, it was touch-and-go for a while.
[Read more...]The Federal Reserve’s Explicit Goal: Devalue the Dollar 33%
February 14, 2012 By Leave a Comment
The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.
[Read more...]RBA Sounds Upbeat About Global Economic Growth
February 7, 2012 By Leave a Comment
Good day… And a Tom Terrific Tuesday to you! Well… Yesterday, I realized that I couldn’t eat all day on Sunday, and expect to want to eat on Monday! But I’m ready to do so today! HA! I also realized yesterday just what a Donnie Downer I’ve been lately, with my insistence that there’s something going on to pull the wool over our eyes… That may be, but I’ve got to be more upbeat, eh?
[Read more...]Hopes, Fears and Preparations for 2012
January 6, 2012 By Leave a Comment
Prepare for the worst; hope for the best…
Gold, stocks, oil…little movement yesterday.
Michelle Bachman decided to drop out of the race for the White House. Pundits, pollsters, and gamblers predict that Romney will be the Republican’s man.
Iran told the US to get out of the Strait of Hormuz. “And don’t come back,” it added. Apparently, investors are betting that the threat wasn’t serious.
[Read more...]Euro Rallies on Positive IFO Index and a Successful Spanish Debt Auction
December 20, 2011 By Leave a Comment
The euro (EUR) sure enjoyed a better night rebounding from close to its annual low versus the US dollar. A surprisingly upbeat IFO business climate index combined with a pledge of more funds for the bailout and a positive Spanish auction to send the common currency higher. The IFO Institute’s index, based on a survey of 7,000 German business executives, rose to a three-month high of 107.2 from 106.6 in November. Economists had expected the index to drop to 106. November’s number had surprised on the upside also, so this month’s value certainly seems to confirm a trend that indicates Germany’s economy may be able to push through the credit crisis to remain on a solid growth path.
[Read more...]A New Theory of Government…
December 6, 2011 By Leave a Comment
Not much to report from yesterday. Dow up 78 points. Gold bouncing around.
All eyes are on Europe. If the Europeans can pull off a save…well, we’re all saved. At least for a few weeks. Maybe through the holiday season.
The euro has been remarkably stable. It has never collapsed — despite all the talk of Europe falling apart. Apparently, people with money don’t think it is in real danger. They think it is too important to let go. They may be right. And the more people talk about the ‘end of Europe’ the more it doesn’t end. Instead of letting it go, the authorities become more and more stubborn in trying to hold it together.
[Read more...]
RBA Cuts Deep
That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]