Wednesday, February 10, 2010
making sure it doesn't happen here
Ben S. Bernanke, Before the National Economists Club, Washington, D.C., November 21, 2002
"...Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation..."
Labels:
Bernanke,
deflation inflation,
printing press
Wednesday, December 16, 2009
blowing bubbles
Time Magazine's 2009 Person of the Year is Helicopter Ben Bernanke.
Time Magazine is a highly credible news source.
Time - February 15, 1999 - The Three Marketeers
Greenspan's bubble and the resulting collapse,
Time Magazine is a highly credible news source.
Time - February 15, 1999 - The Three Marketeers
Greenspan's bubble and the resulting collapse,
Thursday, November 26, 2009
discretionary spending
A blatant sign of discretionary spending at the top of the credit bubble were the Dubai governement's highly speculative 'island' developments.
Where Vision Inspires Humanity
Eight months after the presumed risk asset lows, the Dubai GSE is failing to meet a $59 billion debt obligation.
Could Dubai Be the Spark for a Correction? (Humble Student of the Markets)
Global consumer credit continues to contract. Helicopter Bernanke's work is not done.
Where Vision Inspires Humanity
Eight months after the presumed risk asset lows, the Dubai GSE is failing to meet a $59 billion debt obligation.
Could Dubai Be the Spark for a Correction? (Humble Student of the Markets)
Global consumer credit continues to contract. Helicopter Bernanke's work is not done.
Thursday, November 19, 2009
negative t bill yields, again
While risk assets are hovering at 2009 highs, short dated treasuries are once again trading with negative yields,
Short Term T Bills Go Negative (Jesse's Cafe Americain)
More on Negative T Bills (Across the Curve)
The bond market continues to steepen on the Fed's endless stimulus,
... and gold rallies as a consequence,
Short Term T Bills Go Negative (Jesse's Cafe Americain)
More on Negative T Bills (Across the Curve)
The bond market continues to steepen on the Fed's endless stimulus,
... and gold rallies as a consequence,
Thursday, October 22, 2009
CME sees gold as money
While the mainstream media continues to categorize gold as a "commodity," the world's largest derivatives exchange views it as currency.
The CME now accepts gold to cover margin variation on all CME traded products,
(Bloomberg) CME Allows Gold to Be Used as Collateral for Trading
Gold has outperformed equities, commodities, and other currencies,
The CME now accepts gold to cover margin variation on all CME traded products,
(Bloomberg) CME Allows Gold to Be Used as Collateral for Trading
Gold has outperformed equities, commodities, and other currencies,
Labels:
chicago mercantile exchange,
commodities,
currencies,
gold,
margin
Thursday, October 15, 2009
in the news: job deflation and naked shorts
While quantitative easing continues to work its magic by nominally reflating risk assets,
CPI and wages are reportedly flat,
(NPR) Social Security: No Cost Of Living Increase Next Year
(AP) Colorado Minimum Wage to Drop as Living Costs Fall
Employment for Wall Street traders is also in decline as the 'smart guys' have replaced the 'average guys.'
The 'smart guys' have become analysts, quants, traders, and risk managers. Increasingly complicated derivatives were developed and sold short in progressively unsustainable size (RIP: LTCM, Bear Stearns, Countrywide, Lehman, Merrill Lynch, Wachovia),
(NYT) Wall Street Smarts
(NYT) Rivals Pose Threat to New York Stock Exchange
Some perspective from the good old days of trading, when 'average guys' with modestly capitalized accounts learned to respect the market. Floor traders knew the practice of picking up pennies in front of trains would eventually lead to unrecoverable losses over the long run,
CPI and wages are reportedly flat,
(NPR) Social Security: No Cost Of Living Increase Next Year
(AP) Colorado Minimum Wage to Drop as Living Costs Fall
Employment for Wall Street traders is also in decline as the 'smart guys' have replaced the 'average guys.'
The 'smart guys' have become analysts, quants, traders, and risk managers. Increasingly complicated derivatives were developed and sold short in progressively unsustainable size (RIP: LTCM, Bear Stearns, Countrywide, Lehman, Merrill Lynch, Wachovia),
(NYT) Wall Street Smarts
(NYT) Rivals Pose Threat to New York Stock Exchange
Some perspective from the good old days of trading, when 'average guys' with modestly capitalized accounts learned to respect the market. Floor traders knew the practice of picking up pennies in front of trains would eventually lead to unrecoverable losses over the long run,
Labels:
black scholes,
cpi,
dollar,
floor trading,
inflation,
liffe,
nobel prize,
nyse,
open outcry,
quantitative easing,
quants,
social security
Wednesday, October 7, 2009
down with the USD
The short USD trade has become even more crowded.
The blogosphere and news media were lit up yesterday with dollar bearish headlines. The hub bub stemmed from an article by Robert Fisk in The Independent, The Demise of the Dollar.
Gold broke to an all time nominal high, topping the $1032.70 high of March 2008. This is significant and may mark the next leg of the gold bull market when, as Richard Russell believes, the general public finally gets involved.
(2 year reverse head and shoulders formation in Gold)
The blogosphere and news media were lit up yesterday with dollar bearish headlines. The hub bub stemmed from an article by Robert Fisk in The Independent, The Demise of the Dollar.
Gold broke to an all time nominal high, topping the $1032.70 high of March 2008. This is significant and may mark the next leg of the gold bull market when, as Richard Russell believes, the general public finally gets involved.
(2 year reverse head and shoulders formation in Gold)
Labels:
dollar,
DXY,
gold,
richard russell,
robert fisk,
USD
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