June 8, 2012
in 2012, Asia, Australia, BRIC, China, USD, bubble, central banks, commodities, foreign investment, forex, indicators, interest rates, international economy, market reports, news and updates, recession, risk, sovereign debt
Last week we were surprised to see a 25 basis point rate cut by Australia – whose inflation and unemployment levels are in a healthy range – so to now see that even China has cut interest rates, well, that’s telling you something significant about the weakness and risks facing global growth.
First Rate Cut Since [...]
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June 8, 2012
in 2012, ADRs, France, G20, G7, G8, Germany, Greece, QE, Spain, bailout, banks, bonds, central banks, currencies, debt, decisions, economy, emergencies, europe, forex, government, international economy, market reports, news and updates, regulation, sovereign debt, stimulus, wealth protection, yield
Well, we are now officially in the middle of a full-blown European debt crisis threatening to spread globally again. All the more reason we might see further stimulus in the US sooner rather than later.
Ahead of a 2 billion Euro bond auction, Spanish yields soared after ratings agency Fitch downgraded Spanish debt in light of [...]
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June 7, 2012
in 2012, 2013, 2014, FOMC, Federal Reserve, Germany, Obama, QE, US Treasury, US debt, central banks, debt, economy, employment, forecasts, government, inflation, news and updates, recession, stimulus
Heads of the Federal Reserves of Atlanta, St. Louis and San Francisco this week have all expressed agreement on the fact that more stimulus – aka monetary accomodation - is needed for the US economy. John Williams (San Francisco), Dennis Lockhart (Atlanta) and James Bullard (St. Louis) – all voting members of the FOMC (Federal [...]
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June 6, 2012
in 2012, FTSE, G7, Germany, Greece, banks, bonds, central banks, debt, europe, indicators, international economy, market reports, money supply
Emergency talks on the Euro crisis are now being planned by the G7 – and this is being reflected in first-time ever historic lows on German bund yields. Investors are now paying for the opportunity to retain the principal value of their investment. Yields have turned negative. Yes, let me repeat that.
The 2-yr German bund [...]
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June 2, 2012
in 2012, Spain, bankruptcy, banks, bonds, central banks, collapse, consumers, currencies, debt, earnings, economy, europe, foreign investment, indicators, interest rates, international economy, savings, stimulus, wealth protection, yield
Large movements of money are under way in Europe these days, as knowledgeable Southern Europeans withdraw from Italian, Greek and Spanish banks and seek for safer places to leave their cash. This is the main push behind the drop in German Bund yields, which are now acting in similar fashion to Treasuries as a safe [...]
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June 1, 2012
in 2012, Federal Reserve, US Treasury, US debt, bonds, bubble, central banks, debt, indicators, interest rates, market reports, money supply, sovereign debt, yield
The rate at which investors are willing to lend the U.S. government money for ten years just reached a new near-term low on May 31, 2012. Financial commentators were calling it “mesmerizing.” How could so many people be so willing to lend money for so long and be paid so little for it?
What Is the [...]
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May 27, 2012
in Asia, BRIC, China, G20, USD, central banks, currencies, exchange rates, foreign investment, forex, indicators, international economy, market reports, news and updates, trends, world reserve currency
Slowly but surely, the reserve currency status of the United States dollar is transitioning into a lesser role, at least for China. As early as June, the AP reports, the Yen and Yuan will begin direct trading without the use of the USD as a “cross-currency” intermediary. This means that the USD will no longer [...]
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