Good day. My first day back in the saddle went fairly well, the meetings were short and sweet — just the way I like them — and I got out of here at a decent time to get home and get my feet up. It was a busy day in the markets, and with no economic data to guide them, they continued to steer toward the dollar.
[Read more...]Changing Views on Growth and Economic Recovery
December 12, 2011 By Leave a Comment
What’s new?
When we signed off last week, the Germans and the French were trying to hold Europe together. This morning, they are still trying.
“Don’t you live in Europe?” asked a friend at a party over the weekend.
“Yes…much of the time.”
“Well, maybe you can tell me what is going on with this European debt crisis?”
[Read more...]Why the US Dollar is (for Now) Still in Demand
September 27, 2011 By Leave a Comment
Cash is king.
Ai yi yi…
Last week was the worst for investors in 3 years. Even gold melted down, as we thought it eventually would.
The only things to go up were US Treasury debt and the dollar. As expected, the Great Correction is doing its work.
So far, the stock market has held up as well as it has. But now it seems to be selling off. And gold is selling off too.
[Read more...]Consumer Spending and the Decline of the US Economy
May 13, 2011 By Leave a Comment
First, a brief look at the markets…
Stocks rallied a bit yesterday, reversing a sharp selloff from the previous day. The Dow added 65 points. The S&P 500 ended up a smidge and the NASDAQ finished 40 points ahead of where it began the session. Gold fell off by almost $25…before recouping all of its losses to end the day more or less where it began, at $1,506 per ounce. Silver trended likewise. As did oil.
[Read more...]The Coincidental Rise of Oil and the Monetary Base
April 7, 2011 By Leave a Comment
“High oil prices start to apply the brake on drivers,” says a headline in The Financial Times.
As predicted, the feds’ easy money policies are turning into hard times for the middle and lower classes. Oil prices have gone up with the Fed’s balance sheet. For every dollar the Fed added, the price of oil ticked up too.
[Read more...]No Hope for a Consumer-Driven Economic Recovery
March 21, 2011 By Leave a Comment
The Great Correction intensifies…
The Dow rose on Friday. The dollar fell. Gold is back over $1,400. And the euro – the world’s most despised currency – is back over $1.40.
A chart circulates, supposedly proving that GDP is now back to where it was in ’07, after falling only 4% in the downturn.
[Read more...]Greek Spending Cuts Lead to Civil Unrest
March 4, 2010 By Leave a Comment
What a day the currencies had yesterday! The euro (EUR) gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step… Now… Theres two ways to look at this… Either the euro is like a star thats getting ready to burn out… (It always shines brightest before it burns out), or… Its like a star that had been covered up by another planet, and is coming back into view!
[Read more...]China: No Shortcut to Greatness
March 1, 2010 By Leave a Comment
The Chinese economy must be getting out of control, because the Chinese government is doing the unthinkable: It is desperately trying to put the brakes on the economy. When you pump a stimulus package that represents 14% of GDP through a fire hose into an economy, which was already on shaky bubble foundation, in a very short time youll have some serious unintended consequences — youll get super bubbles. ?
[Read more...]
Bill Gross and Others Call for QE3
Good day. My first day back in the saddle went fairly well, the meetings were short and sweet — just the way I like them — and I got out of here at a decent time to get home and get my feet up. It was a busy day in the markets, and with no economic data to guide them, they continued to steer toward the dollar.
[Read more...]