Well, as I said in last week's update, volatility has returned. It was another wild week in global markets with politicians, central bankers and even some actual economic data providing the fireworks. Japan barely kept the JGB/Nikkei roller coaster on the tracks with a wild week that ended with the Nikkei in what some are calling a bear market since [...]
I have been pounding the table for months about QE and its inverse relationship with vital banking liquidity. In engaging in Large Scale Asset Purchases (LSAP) central banks, particularly in the US and Japan, are playing a very dangerous game. Despite conventional “wisdom” that when a central bank engages in such a monetary easing program it must lead to an [...]
Despite repeated assurances that the Bank of Japan would do whatever monetarisms it could to calm the Japanese bond markets, the persistent stain of selling pressure has not abated, rather it has increased. While to this point it had been relatively benign in the most obvious correlations, the Nikkei has risen steadily throughout, for example, there have been signs of [...]
The Federal Reserve on a few separate occasions, as I noted late last week, has begun to peremptorily quash the growing use of the loaded word “bubble”. From academic papers to Fed speeches, US monetary policymakers want to make sure that investors and the public know they are watching for them though they have yet to appear. Vigilance is paired [...]
This week, one particular article sparked an intense internal dialogue about some of the global economic realities that have us concerned. The article is from Peking University’s Professor Michael Pettis. Prof. Pettis opines that Chinese citizens would rather save than spend and that Japan, who has recently run a current account deficit, would prefer to run a surplus. In China, [...]
Stay In Touch