Everything that happens has already happened at some point or another in history. The tortured history of crises occurs because no one was paying attention the first time. It is eerie, though, how similar the growing currency crises in BRIC’s and emerging markets are to the Asian flu of 1997-98. There is one primary difference; the cause of the dollar’s [...]
US and European markets have lazily ignored what is taking place in locales far and wide. This is not some strain of investor xenophobia, but rather the comfort created by the Federal Reserve and ECB’s twin policies of courting complacency. Through QE/OMT and their attendant processes, hedging and the appeal of hedging have been quashed as “tail risks” have receded [...]
Apparently it is time to celebrate inflation, however it might be defined. Inflation is looked on no longer as the bane of central bankers, but their reason to exist. This is now near universal, as one after another nation is forced by central banks to appeal to debasement as economic salvation. On the surface, it looks as if the Bank [...]
The Reserve Bank of India again intervened against the dollar last night, bringing the rupee off its historic low. The intervention, however, was dissimilar from previous moves as it took the form of restricting flow. According to The Hindu, the RBI took to, “ordering state-owned oil companies to purchase their dollar requirement from a single public sector bank for every [...]
While currency temptations run high in countries with more active central banks, there has been, as I noted yesterday, growing illegitimacy in trying to create academic conditions in the real world. The primary manifestation of the instability created by believing currencies can and should be actively managed has been an outbreak of “inflation”. I use quotes here because rising general [...]
Stay In Touch