You have to wonder who is willing to loan money to the United States government – given the state of its fiscal and monetary policies – for thirty years at below 5%.
November 9th, 2009 | Dan Denning | 0 comments | ContinuedAll Posts Tagged With: "interest rate"
Price of Gold Communicates U.S. Monetary and Fiscal Policy is Lousy
It’s also possible that the Fed thinks a weak dollar will reduce America’s trade deficit, boost its export competitiveness, and lead to higher employment. We think this is a pipe dream. And we’re not talking about a lead pipe. We’re talking William Blake-style opium.
November 5th, 2009 | Dan Denning | 3 comments | Continued
Why I Would Have Raised the Interest Rates
Am I privy to the discussions of the RBA Board? No again. But I do know this. I do know why I would have raised rates, and would keep on raising them until the Government gets the message.
October 9th, 2009 | Dr. Steven Kates | 16 comments | Continued
Aussie Dollar is Crushing Long-time Rivals Like the Pound and the U.S. Dollar
One way to view a currency, we read somewhere recently, is as a national obligation secured by national assets. Those “assets” are loosely defined as economic growth (GDP) or the tax revenues a government can generate. A growing economy generates royalties and income taxes and demonstrates to international bond investors Australia’s ability to service interest and principal on debt.
October 9th, 2009 | Dan Denning | 18 comments | Continued
Aussie Dollar Ready to Storm Past US Dollar
Yesterday’s episode of the Daily Reckoning left off with the question of whether 5,000 was in sight on the ASX 200. The answer today is that it is just over the horizon. The index closed up 2.3% to 4,695. The more investors thought about the recovery/China/demise of the dollar story, the more they liked buying stocks (especially gold stocks).
October 8th, 2009 | Dan Denning | 26 comments | Continued
U.S. Dollar Index Showing All Sorts of Weakness
The U.S. dollar taketh…and the U.S. dollar giveth away. That’s one way of looking at the flurry of activity in markets right now. The Aussie dollar is at a ten-month high. Oil is up 75% since January, with crude trading at $74/barrel. Copper is at a ten-month high. The S&P 500 has cracked 1,000 again.
August 4th, 2009 | Dan Denning | 5 comments | Continued
In Europe, Banks Borrow Money and Lend it Back to the Government
The ECB loans money at low rates to the banks – hoping to encourage consumer and business lending. In June, for example, the banks borrowed 442 billion euros at a fixed interest rate of 1%. But lending to business and households is at its lowest level since record-keeping began…
July 30th, 2009 | Bill Bonner | 1 comment | Continued
1% Aussie Interest Rate Cut?
Here we go again. Where to this week? The RBA meets tomorrow. The TD Securities-Melbourne inflation gauge apparently fell 0.6% in November. Falling petrol prices brought everything else down. Does this mean the RBA can cut Aussie interest rates one full percent or 75 basis points, as economists expect? Who knows? And will it matter anyway? That is, is a rate cut the sort of thing that’s going to prevent the Australian economy from suffering a globally-induced recession? Don’t count on it.
December 1st, 2008 | Dan Denning | 1 comment | Continued
Reserve Bank’s First Interest Rate Cut in Seven Years
If you witnessed complete strangers linking arms and breaking into song in the street this morning, it was either a long-lost chorus line or a collection of relieved homeowners. Yesterday the Reserve Bank cut base interest rates for the first time in seven years. If you’re an average Australian, you’re now $44 better off each month. Or $528 each year…
September 3rd, 2008 | Dan Denning | 2 comments | Continued