Category Archives: Currencies

flow news in 2014 is bad for the Euro

Posted on January 5, 2015 @ 11:45 am (Monday) by WARREN MOSLER

So I still see all the fundamentals/trade flows favoring the euro vs the $US, with the EU running a trade surplus and the US a deficit, and low oil prices ‘helping’ the EU trade balance while ‘hurting’ the US’s. But … Continue reading →

Posted in Currencies, EU |

Comments on Greece

Posted on December 30, 2014 @ 11:56 am (Tuesday) by WARREN MOSLER

A couple of ‘fundamentals’ A default/restructure/debt reduction of any form removes euro financial assets and is a contractionary/deflationary bias that makes euro ‘harder to get’ and thereby firms the currency. Also, Greece has been running a budget deficit, which adds … Continue reading →

Posted in Currencies, ECB, EU |

Japan etc.

Posted on December 25, 2014 @ 8:44 am (Thursday) by WARREN MOSLER

The 10 year note in Japan closes below .3%- that’s what happens when you have the largest deficit in the world… ;) And note the yen has gone from just under 80 to the $ not that long ago to … Continue reading →

Posted in Currencies, Japan |

Comments on crude pricing, the economy, and the banking system

Posted on December 4, 2014 @ 12:15 pm (Thursday) by WARREN MOSLER

Crude pricing The Saudis are the ‘supplier of last resort’/swing producer. Every day the world buys all the crude the other producers sell to the highest bidder and then go to the Saudis for the last 9-10 million barrels that … Continue reading →

Posted in Banking, CBs, Comodities, Credit, Currencies, Fed, GDP, Inflation, Interest Rates, Oil |

euro update, q3 gdp update

Posted on November 26, 2014 @ 1:58 pm (Wednesday) by WARREN MOSLER

Seems trade flows and ‘inflation’ continue make the euro fundamentally stronger even as portfolios shifting due to ECB rhetoric keep it under pressure. Should the shifting run its course, I would not be surprised dramatic appreciation. New figures released by … Continue reading →

Posted in Currencies, EU, GDP |

Euro vs $US

Posted on October 27, 2014 @ 11:09 pm (Monday) by WARREN MOSLER

The euro is up vs the $US today in spite of near universal positioning for it to fall, including technical indicators pointing to further declines. I see lots of positives for the euro and one negative. Positives: 1.  $US went … Continue reading →

Posted in Currencies, EU |

today’s observations

Posted on September 2, 2014 @ 10:47 am (Tuesday) by WARREN MOSLER

Not much sign of any move towards higher deficits today. Just talk of more bank liquidity, which doesn’t matter, and more to weaken the euro, which doesn’t work either. Hard to say why the euro has been going down, but … Continue reading →

Posted in Banking, Currencies, EU |

ECB relying export driven growth through euro depreciation

Posted on August 23, 2014 @ 3:36 pm (Saturday) by WARREN MOSLER

Note below that he states it’s the fx channel that the ECB is relying on to support aggregate demand. Good luck to them, it doesn’t work that way!!! From the speech by Mario Draghi, President of the ECB, Annual central … Continue reading →

Posted in Currencies, ECB, Trade |

Japan- currency depreciation policy ‘bad’ inflation for households, good for exporters

Posted on July 29, 2014 @ 8:27 am (Tuesday) by WARREN MOSLER

Japan’s household spending falls 3.0% in June July 29 (Kyodo) — Average Japanese monthly household spending fell a price-adjusted 3.0 percent in June from a year earlier to 272,791 yen. The average monthly income of salaried households came to 710,375 … Continue reading →

Posted in Currencies, Japan |

Time to say goodbye? Schauble Calls on Italy to Pursue Structural Reform

Posted on July 18, 2014 @ 10:05 am (Friday) by WARREN MOSLER

Schäuble Calls on Italy to Pursue Structural Reform By Andrea Thomas July 16 (WSJ) — German Finance Minister Wolfgang Schäuble called on Italy to pursue its ambitious structural reform efforts if it wants to boost its economic-growth prospects. “Especially since … Continue reading →

Posted in Currencies, EU, MMT, Proposal |