Author Archive

U.S. Federal Reserve Meeting Minutes for December 11

U.S. Federal Reserve Meeting Minutes for December 11 2008-01-02 14:06 (New York) (Bloomberg) Following are the minutes of the Federal Reserve’s Open Market Committee meeting that concluded on December 11. The Manager of the System Open Market Account reported on recent developments in foreign exchange markets. There were no open market operations ...Read More

2008-01-02 US Economic Releases

RPX Composite 28dy Index (Oct) Survey n/a Actual 258.86 Prior 259.22 Revised n/a RPX Composite 28dy Index YoY (Oct) Survey n/a Actual -3.4295 Prior -2.4848 Revised n/a Metropolitan housing prices remain very weak. ISM Manufacturing (Dec) Survey 50.5 Actual 47.7 Prior 50.8 Revised n/a On the weak side – mainly new orders. ...Read More

A very British bubble for Mr Brown

A very British bubble for Mr Brown Leader Sunday December 16 2007 The Observer The buzz words in the world of finance these days are ‘moral hazard’. That is economist-speak for what happens when people who have engaged in risky business and fallen foul of market forces are let off the hook. ...Read More

Crisis may make 1929 look a ‘walk in the park’

Crisis may make 1929 look a ‘walk in the park’ Telegraph by Ambrose Evans-Pritchard As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues that things risk spiralling out of their control Twenty billion dollars here, $20bn there, and a lush half-trillion from ...Read More

2007-12-31 US Economic Releases

Existing Home Sales (Nov) Survey 4.97M Actual 5.00M Prior 4.97M Revised 4.98K Existing Home Sales MoM (Nov) Survey 0.0% Actual 0.4% Prior -1.2% Revised -1.0% Could be bottoming. Affordability is up nicely, employment is reasonably strong, income holding up nicely. And on a per capita basis, housing is at forty year lows. ...Read More

China – Passing higher food prices to Asia

It makes political sense to use export taxes as a form of a domestic subsidy for basic necessities, and from a macro economic point of view, it a good way to express the political desire as well. A negative is this will give domestic producers an incentive to ‘cheat’ to avoid the ...Read More

A Rescue Plan for the Dollar

A Rescue Plan for the Dollar By Ronald McKinnon and Steve H. Hanke The Wall Street Journal, December 27, 2007 Central banks ended the year with a spectacular injection of liquidity to lubricate the economy. On Dec. 18, the European Central Bank alone pumped $502 billion — 130% of Switzerland’s annual GDP ...Read More

Perspective

Perspective by Steve Hanke US Mercantilist Machismo, China replaces Japan The United States has recorded a trade deficit in each year since 1975. That is a good thing – exports are real costs, imports benefits. This is not surprising because savings in the US have been less than investment. This is a ...Read More

2007-12-28 US Economic Releases

Chicago Purchasing Manager (Dec) Survey 51.7 Actual 56.6 Prior 52.9 Revised n/a Graph Looks Ok. New Home Sales (Nov) Survey 717K Actual 647K Prior 728K Revised 711K New Home Sales MoM (Nov) Survey -1.6% Actual -9.0% Prior 1.7% Revised 1.7% Still heading south, but less impact on GDP. Also, fewer homes are ...Read More