Currencies

Eurodollar University’s Making Sense; Episode 9: The Japanese Were A Monetary Example To Avoid, Not Follow

By Jeffrey P. Snider|2020-05-18T17:56:55-04:00May 18th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

iTunes: https://apple.co/3czMcWN Spotify: https://spoti.fi/3arP8mY Google: https://shorturl.at/fpsEJ Alhambra-tube: https://youtu.be/1--doZDGZ1M Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] Dr. Milton Friedman, in a December 1997 article, correctly diagnosed what was wrong with the Japanese economy: not enough money. His prescription? Quantitative easing. It was, unfortunately, malpractice. In late April 2020, the Bank of Japan announced its 24th iteration of it. Maaaaaaaaaaaaaaaaaaaaaaaalpractice.It is often said [...]

Market vs Economy: A Time Mismatch
Market vs Economy: A Time Mismatch

Market vs Economy: A Time Mismatch

By Joseph Y. Calhoun III|2020-05-18T17:23:53-04:00May 18th, 2020|Alhambra Research, Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Real Estate, Stocks, Taxes/Fiscal Policy|

“Intelligence is the ability to adapt to change.” Stephen Hawking The economic news over the last month has been as awful as anyone alive has ever seen. Unemployment has risen from 3.5% to 14.7% since February with nearly 15 million Americans filing for jobless benefits in the last month alone. The CFNAI hit its third-worst reading ever and that [...]

Overseas Dollar Swaps Are Not As Overseas As You Think

By Jeffrey P. Snider|2020-05-18T16:44:34-04:00May 18th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

People quite often want to know what I have against the Fed’s swaps. To begin with, they are sourced by bank reserves. My co-host partner Emil Kalinowski likes to say these latter are the equivalent of laundromat tokens, an analogy I can at least get behind. They are monetary in appearance but of (extremely) limited use. Maybe a more comprehensive [...]

A Cautious China

By Jeffrey P. Snider|2020-05-15T18:41:48-04:00May 15th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Chinese are well past their trough, so there may be some meaningful interpretations for us to take from their data. Then again, we already know there’s not much there from China’s trade figures. Exercise caution, in other words.One key reason why is that China’s going to get hit with a second wave. Virus outbreak maybe, economic disruption definitely. The [...]

How Much “V” In Another (minus) 98?

By Jeffrey P. Snider|2020-05-15T16:49:59-04:00May 15th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Technically, by showing one decimal place maybe this doesn’t exactly qualify. Then again, I was only half serious. When Mexico’s government reported earlier this week that auto production fell by almost 100% in April, I wrote it was suggestive of the great possibly lingering difficulties being forecast for the other side of this economic dislocation. Automakers, basically, aren’t buying the [...]

The Big Picture’s Going To Need More Than Magic Words

By Jeffrey P. Snider|2020-05-14T19:20:26-04:00May 14th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

What connects March 2020 with February 2008 as well as the Crash of ’87 all then with the Great Contraction which initiated the Great Depression? If you said economic and financial chaos, you’d be partly right. There wasn’t really much or any of that in 1987, though there was with the other three. People including politicians and central bankers don’t [...]

Eurodollar University’s Making Sense; Episode 8: Your Questions

By Jeffrey P. Snider|2020-05-14T11:51:23-04:00May 14th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

iTunes: https://apple.co/3czMcWN Spotify: https://spoti.fi/3arP8mY Google: https://shorturl.at/fpsEJ Alhambra-tube: https://youtu.be/qb_ylacLPMc Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] On September 21, 1897 the The Sun, a newspaper out of New York, printed an editorial in response to a letter from eight-year old Virginia O'Hanlon. "Yes, Virginia, there is a Santa Claus," came the reply. In that tradition, Making Sense presents episode eight, in which we [...]

Miracles Aren’t Shovel-Ready

By Jeffrey P. Snider|2020-05-13T19:39:50-04:00May 13th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The monetary mouse. After years of Mario Draghi claiming everything under the sun available with the help of QE and the like, Christine Lagarde came in to the job talking a much different approach. Suddenly, chastened, Europe’s central bank needed assistance. So much for “do whatever it takes.”They did it – and it didn’t take.Lagarde’s outreach was simply an act [...]

There Was Never A Need To Translate ‘Weimar’ Into Japanese

By Jeffrey P. Snider|2020-05-13T17:26:47-04:00May 13th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

After years of futility, he was sure of the answer. The Bank of Japan had spent the better part of the roaring nineties fighting against itself as much as the bubble which had burst at the outset of the decade. Letting fiscal authorities rule the day, Japan’s central bank had largely sat back introducing what it said was stimulus in [...]

“Support”

By Jeffrey P. Snider|2020-05-12T19:50:23-04:00May 12th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

They merely repeat the words, as it is intended. With major fanfare and widespread praise, the Federal Reserve weeks ago had announced it was going to buy corporate bonds. Well, not actual bonds but ETFs. It hasn’t bought a single one of those, either, at least not until today and yet the program is being assigned the usual magical properties. [...]

Market vs Economy: A Time Mismatch

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