Category Archives: Currencies

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

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

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

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

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

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

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

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 |

Comments on Martin Wolf’s banking article

Strip private banks of their power to create money By: Martin Wolf The giant hole at the heart of our market economies needs to be plugged Printing counterfeit banknotes is illegal, but creating private money is not. The interdependence between … Continue reading

Posted in Banking, CBs, Currencies, Fed |

Draghi on the euro

Draghi says a stronger euro would trigger looser ECB policy (Reuters) Except by my calculations he has it backwards, as lower rates make a currency like the euro stronger, not weaker, via the interest income channels, etc. ECB President Mario … Continue reading

Posted in CBs, Currencies, ECB, Trade | Tagged |

More traction

Posted in Currencies, MMT |