The Aussie dollar, for example, tacked on 4.5% against the greenback last week. The Aussie is now at a seven-month high against the USD. You could be tempted to say the “carry trade” is back on. That’s where investors borrow in Yen or U.S. dollars to buy higher yielding currencies like the Australian and New Zealand dollars. But we don’t think that’s the case. Why?
May 25th, 2009 | Dan Denning | 0 comments | ContinuedAll Posts Tagged With: "bonds"
Monetary Inflation the Old-fashioned Way!
All of our economic problems are caused by the Federal Reserve creating the excess of money and credit that produced the bubbles in stocks, bonds, houses and size of government, but doesn’t have to be electronic money made from electronic credit.
May 5th, 2009 | Mogambo Guru | 1 comment | Continued
The World of Money Seems a Million Miles Away
When we arrived back in civilization…or at least back in Salta, Argentina…we were happy to see that nothing much had changed. Just as well. We didn’t want to write much about the financial world anyway.
April 22nd, 2009 | Bill Bonner | 4 comments | Continued
Australia Ponders its Chinese Future
Let’s take a break from the great housing debate today and return to markets. What a day it was! Gordon Brown is ridiculed in the European Parliament as a U.K. bond auction fails. The U.S. Treasury Secretary is forced to consider a Chinese proposal for a new reserve currency that is not the greenback.
March 26th, 2009 | Dan Denning | 3 comments | Continued
A CAP to Replace the TARP
The share market is digesting the ambitious speech Barrack Obama gave to the U.S. Congress. He’s going to cut the U.S deficit in half, increase spending, provide universal health care, improve education, replace oil with alternative energy, introduce a carbon cap and trading scheme…and that’s just before lunch! You have to wonder what kind of Kool Aid the folks in Washington are drinking…
February 26th, 2009 | Dan Denning | 0 comments | Continued
An Irish Bond Bomb
More people are beginning to see States in a different light. Rather than seeing states as the (most of the time) democratically elected representatives of the people, people see something much more feudal. They see a set of elites who achieve and maintain their position by looking out for the economic interests of a small group of elites, including themselves…
February 19th, 2009 | Dan Denning | 3 comments | Continued
Circle September 26th on Your Monetary Calendar
Bankers are bankers, after all. Their product is money. But they have gold in their vaults for a reason. It was money before paper was money. So September 26th may mark the end of the orderly and coordinated management of gold sales by European Central Banks. And it may mark the beginning of a new monetary era where gold reasserts its importance as money…
January 28th, 2009 | Dan Denning | 2 comments | Continued
The Swift and Violent Rise of Oil
If you want to know why oil prices could double this year, or how $52 trillion in total global debt will utterly suffocate central bank attempts to resuscitate bank lending, or Ben Bernanke’s secret plan to turn trillions of dollars worth of toxic assets into shareholder equity, read on! Two topics in one day! Why are oil prices lying? How much air is left in the credit bubble?…
January 20th, 2009 | Dan Denning | 10 comments | Continued
The Coming Oil Back Draft
During the big run up to $150, national oil companies were cash cows. But it now appears that little of the oil bounty was reinvested in new production or even maintenance of existing production. So what do we have now? We have a situation here. A situation where the falling oil price is leading a big reduction in oil production. This will match, for a while reduced demand for oil. But we also think it’s baiting the trap for a huge blowback in oil prices. And the spark for that could be geopolitical…
January 19th, 2009 | Dan Denning | 1 comment | Continued
Where was your Money in 2008?
2008 is now in the rear-view mirror, with virtually every investor shouting “Good riddance!” and praying for a better year to come. Forget about making money, just keeping your head above water was an accomplishment over the past twelve months…
January 14th, 2009 | Doug Hornig | 1 comment | Continued