Monthly Archive:: April 2011

The other Warren (Buffet) gets MMT?

Waiting for the day when he adds: ‘There for federal taxes function to regulate aggregate demand, and not to raise revenue per se.’ Warren Buffett: Failure to Raise Debt Limit Would Be ‘Most Asinine Act’ Ever By Congress By Alex Crippen April 30 (CNBC) — Warren Buffett says if Congress fails to ...Read More

how crowded is the short dollar trade?

Long gold, stocks, and other currencies is all the same trade, and all the specs and trend followers are in big, proving once again that the crowd isn’t always wrong. Lack of understanding of what QE actually is seems to have scared everyone from portfolio managers and the man on the street ...Read More

An other-paradigm bludgeon?

>    >   (email exchange) >    >   On Fri, Apr 29, 2011 at 10:10 AM, Arthur Patten wrote: >    >   Warren, just came across this 2008 paper. Authors find that most of the volatility in >   standard inflation measures is due to relative price changes and that interest rates >   are positively correlated with inflation. On behalf of ...Read More

QE and Real GDP

To which they respond ‘monetary policy works with a lag’ And to which I add, yes, it lags until the next fiscal adjustment kicks in. ;) >    >   But equities continue to peform relatively well. >    Yes, they should be ok with any positive top line growth. The risks that remain are a ...Read More

Goldman on monetary policy in the BRICs

Excellent recap of what’s happening through the eyes of Wall St. in the BRICS. To be noted: The BRICS all seem to be fighting inflation, which means the problem is that bad. Unfortunately, hiking rates via direct rate hikes, reserve requirement hikes, and the like, which they all are doing, add to ...Read More

Russia Continues To Buy Gold

Looks like QE scared Putin into buying gold: Russia Continues To Buy Gold By Rhiannon Hoyle April 28 (Dow Jones) — Russia’s central bank is continuing to make steady gold purchases, while sales by signatories to the third Central Bank Gold Agreement meanwhile remain negligible, the World Gold Council said Thursday. Russia ...Read More

China’s dollar reserves being used to fight inflation?

This may be some of the most recent data: The SAFE Releases Data on Chinas External Debt at the End of September 2010 Excerpt: “At the end of September 2010, China’s outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD546.449 billion. Specifically, the outstanding registered ...Read More

from Press Conference

I thought he did a AAA job within his paradigm. The answers on the dollar were spot on- ultimately the dollar is worth what it can buy, so ‘low inflation’ is a strong dollar policy in the long term. It’s pretty much the purchasing power parity argument. Additionally, he said a strong ...Read More

FOMC Statement

Also note that long term forecasts continue to assume ‘appropriate monetary policy’ This means the forecasts contain the assumption that the Fed can hit it’s long term goals for inflation and unemployment by adjusting ‘monetary policy’ In other words, the presumption of being able to hit their targets means the longer term ...Read More

MBA’s index of loan requests for home purchases tumbled 13.6 percent

This is disturbing, along with still weak housing price indicators, and the ongoing downward revisions to GDP forecasts, as aggregate demand remains under international attack on all fronts. On the govt side, China is cutting demand to fight inflation, with India and Brazil presumed to be doing same. Austerity measures continue to ...Read More