Markets

The Real F-ing Boom

By |2020-02-18T18:54:40-05:00February 18th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I can’t believe this is necessary, a sign of the times and a perfect example/explanation of how it got this far. In case you haven’t heard, President Trump has gotten into a Twitter spat with his predecessor former President Obama. For reasons that have nothing to do with legitimate economics (small “e”), both men are attempting to take credit for [...]

Japanese Data: Much More In Store For Number Four

By |2020-02-18T17:01:24-05:00February 18th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

They put it off so long they backed themselves into this corner. The Japanese government under Prime Minister Shinzo Abe had originally scheduled two VAT tax hikes as part of the rollout for Abenomics. It would be inflationary and fiscally responsible all in one pass. To make sure Japan’s perpetually struggling economy could absorb any fallout from them while still [...]

European Data: Much More In Store For Number Four

By |2020-02-14T18:29:01-05:00February 14th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s just Germany. It’s just industry. The excuses pile up as long as the downturn. Over across the Atlantic the situation has only now become truly serious. The European part of this globally synchronized downturn is already two years long and just recently is it becoming too much for the catcalls to ignore. Central bankers are trying their best to, [...]

US Sales and Production Remain Virus-Free, But Still Aren’t Headwind-Free

By |2020-02-14T17:18:26-05:00February 14th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The lull in US consumer spending on goods has reached a fifth month. The annual comparisons aren’t good, yet they somewhat mask the more recent problems appearing in the figures. According to the Census Bureau, total retail sales in January rose 4.58% year-over-year (unadjusted). Not a good number, but better, seemingly, than early on in 2019 when the series was [...]

You Shouldn’t Miss The Cupom

By |2020-02-13T18:56:52-05:00February 13th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I actually wanted to focus on this yesterday but confirmation wasn’t forthcoming until today. So, it ended up being a broader note on the dollar which only included some mention of Brazil in passing. Still a worthwhile couple of minutes. There were rumors that Banco (central) do Brasil was intervening or was going to intervene in its local currency markets, [...]

The Dollar’s Demise And All That

By |2020-02-12T19:51:00-05:00February 12th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Back last June, the dollar had broken its upswing. DXY, one major dollar index, had fallen sharply as had most if not all of the rest. This one had given up most of its “gains” in a relatively short period. That said, to some, the greenback had definitely hit its high. All downhill from there. It didn’t help, supposedly, that [...]

I For One Welcome Our New Robot Overlords

By |2020-02-12T17:24:57-05:00February 12th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Fears over machines aren’t anything new. The Terminator franchise got started in the eighties and was hardly original back then. In gross economic terms, it may seem like the robot invasion is a 21st century phenomenon. It isn’t. One need only go back to Alberta of all places and learn about the Canadian Clifford Hugh Douglas. Douglas preached something called [...]

As the Data Comes In, 2019 Really Did End Badly

By |2020-02-11T19:33:47-05:00February 11th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The coronavirus began during December, but in its early stages no one knew a thing about it. It wasn’t until January 1 that health authorities in China closed the Huanan Seafood Wholesale Market after initially determining some wild animals sold there might have been the source of a pneumonia-like outbreak. On January 5, the Wuhan Municipal Health Commission issued a [...]

The Real Labor Market

By |2020-02-11T17:11:34-05:00February 11th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As you might imagine, inflation was the hot topic of conversation during the December 2014 FOMC meeting. Having opened up the transcripts for that year to the public last month, we are once more treated to the background behind this theater of the absurd. The final few months of 2014 were when everything came together. For these central bankers, it [...]