All Posts Tagged With: "central banks"

You want money? You want cash? You want something you can take to the bank? Well, you’ve got it!

“A move by the world’s central banks to lower the cost of borrowing exhilarated investors Wednesday” the Associated Press reports.

With the whole world economy in a bit of a funk you wouldn’t expect oil to be over $100 and gold to be over $1,700. Or would you?

Anecdotal evidence from the German population suggests that whinging is on the agenda, without any obvious plan of action. “Germany works, while the rest of Europe parties” is the phrase on everyone’s lips.

You’ll pardon the sense of inevitability in today’s Daily Reckoning. After all it’s raining. But even so, with over $1 billion in Melbourne property clearing auctions this week (at a clearance rate of 86%) it definitely feels like Australians have found a way to hasten their own financial day of reckoning. Of course not everyone agrees.

Reading more closely, we don’t see much reason for the Fed’s optimism. And apparently, neither does the Fed. It is leaving its monetary stimulus program in place for an “extended period.”

But now we see that the central bankers are even more unreliable than we imagined. They are diligently trying to do the wrong thing, as usual.

Gold seems to be advancing towards a new milestone – $1,100. Makes us nervous. We always feel more comfortable out in the wide, open spaces…

We began the week wondering about the cycles of history and markets. We wondered whether Australia is following the Anglo-American cycle into a long-winter…where people lose confidence in each other, in government, and in the institutions they relied on in the past for law and order, employment, and prosperity.