Posts about USA and Inflation as of October 26, 2009
10/26/2009
by Mike WhitneyThe “dollar debate” on the Internet has been ferocious and emotionally-charged, but sadly lacking in logic. To oppose the “dollar will crash” theorists is like arguing a woman’s right to choose with the fist-waving throng assembled outside an abortion clinic. The results are equally disappointing. To say that “minds are already made up and the issue is settled”, is an understatement. For many, the dollar’s transition from the world’s reserve currency to a Wiemar era Deutschemark is not a question “if” but only of “when”.
10/26/2009
This post is a guest contribution by Dian Chu*, market analyst, trader and author of the Economic Forecasts and Opinions blog. The dollar’s value against major currencies has fallen in recent months as the US fiscal outlook worsened and amid expectations that interest rates will remain close to zero for some time to fight the economic downturn. This week, the euro broke above the psychologically important level of $1.50 driving gold prices to record levels, prompting many global central banks intervening on currency markets to slow the dollar’s fall ( Fig 1 ).
10/26/2009
This post is a guest contribution by Dian Chu*, market analyst, trader and author of the Economic Forecasts and Opinions blog. The dollar’s value against major currencies has fallen in recent months as the US fiscal outlook worsened and amid expectations that interest rates will remain close to zero for some time to fight the economic downturn. This week, the euro broke above the psychologically important level of $1.50 driving gold prices to record levels, prompting many global central banks intervening on currency markets to slow the dollar’s fall ( Fig 1 ).
10/26/2009
Dr. Krauthammer is on Fox News. He is an M.D. and a lawyer and is paralyzed from the neck down. A friend went to hear Charles Krauthammer. He listened with 25 others in a closed room. What he says here, is NOT 2nd-hand but 1st. The ramifications are staggering for us, our children and their children. Last Monday was a profound evening. Dr. Charles Krauthammer spoke to the Center for the American Experiment. He is a brilliant intellectual, seasoned & articulate.
10/25/2009
Sometimes it is helpful to turn to the clairvoyance of those who analyze the markets for an idea as to how politics translates into action in the real world. After all, people vote with their pocketbooks, and there will likely be a short-term feel good period followed by what is predicted to be a market crash (again) in the summer of 2010. You have to admit that one of the greatest things about America is that informed people can literally survive quite well even in the most daunting of circumstances.
10/25/2009
By: Bob Chapman Market Oracle Oct 24, 2009 Last week Federal Reserve credit declined $12.9 billion, up 21% yoy. Fed foreign holdings of Treasury/Agency debt rose $4.1 billion to a record $2.865 trillion. Custody holdings for foreign central banks expanded at a 17.5% rate ytd, and yoy 15.2%. M-2 narrow money supply fell $23.3 billion to $8.341 trillion, that is 5.9% yoy. Total money market assets dropped $42.3 billion to $3.404 trillion. They have declined $427 billion ytd, or 14.1% annualized.
10/21/2009
Banking sector consolidation (via acquisition of failed banks) and the generalized bailout of bondholders, actions both promoted by governments, have aggravated the problems of “too big to fail” and “moral hazard”. Hence incentives for reckless behavior have actually heightened. So far there has been lots of talk within the G-20 and other forums but little action to tackle the problem at national and especially at transnational levels.
