Monthly Archive:: May 2009

China policy obamanation

[Skip to the end] We do not need China or anyone else to buy our securities and we net benefit enormously from net imports in general. The profoundly confused China policy comes from an administration that both does not understand the monetary system and does not understand that imports are real benefits ...Read More

Geithner’s got it wrong re: China

[Skip to the end] This is what happens with an administration that does not understand imports are real benefits and exports real costs. This is a proactive move that hurts our real terms of trade and real standard of living. Geithner to Urge China to Boost Demand, Official Says by Rebecca Christie ...Read More

Durable Goods Order/Claims

Karim writes: Durable Goods Order/Claims Durables goods orders +1.9% headline; -1.5% ex-aircraft and defense (this is the measure used for the private sector capex component of GDP) Defense up 23.2% m/m; here are the prior 3mths for defense orders in 2009 (-11%;+33%;-40%) Shipments ex-defense -0.3% Inventories -0.8% (unexpected as most felt inventory ...Read More

James Grant

[Skip to the end] (email exchange) >    >   Hi Warren. I heard James Grant speak yesterday. He was funny, entertaining, articulate >   and full of historical knowledge, but I found his monetary analysis appalling. He wants >   the U.S. (and the rest of the world) to be on a strict gold standard. >    >   It seems ...Read More

Obama – “US out of money”

After a fiscal package that may or may not be sufficient to bring down unemployment, the president is now directly telling us that the next move is to dampen aggregate demand by reducing health care spending (and letting tax rates go higher.) In a sobering holiday interview with C-SPAN, President Obama boldly ...Read More

FDIC undervalued failed banks as suspected

[Skip to the end] As suspected at the time, some (not all) of the failed banks were undervalued by the FDIC to facilitate a quick transfer to other institutions to the detriment of the former shareholders. Worse, the FDIC said some of the banks failed due to liquidity and not capital impairment. ...Read More

Vice Chair Kohn on fiscal expansion

[Skip to the end] Yes, he’s got that part very right!!! >   On Mon, May 25, 2009 at 11:06 PM, Roger wrote: >    >   Federal Reserve Vice Chairman Donald Kohn: >    >   Interactions between Monetary and Fiscal Policy in the Current Situation >    >   [I]n the current weak economic environment, a fiscal expansion may be much ...Read More

German debts set to blow ‘like a grenade’-Pritchard

[Skip to the end] Completely agreed about the possibility of a bank blow up. And it’s also possible the government plan blows up the government. The eurozone is the region vulnerable to ratings downgrades- both banks and national governments. Not the UK and US governments where spending is not revenue constrained. The ...Read More

Commodities speculation

[Skip to the end] I’ve also hear reports that pension funds have been adding to passive commodity strategies: The green shoots will grow slowly by David Robertson May 25 (Business 24/7) — By the middle of this month, copper prices were 60 per cent up on the start of the year and ...Read More

Professor James Sturgeon

[Skip to the end] From Jim Sturgeon I’ll put in my two cents. The crooks should be convicted as a regular part of the legal system and examples set to deter future attempts. However, the acquisitive heart and I expect the felonious one, beats about the same from generation to generation (to ...Read More