2007-12-03 US Economic Releases

ISM was the big number – not a lot of new US numbers today. Unch; but employment component down 4.2pts to below 50 and anecdotes not very comforting and prices paid up, see below. What Respondents are Saying.. “Continued concerns regarding high oil prices, weak dollar and weak housing sector.” (Chemical Products) ...Read More

Saudis are Necessarily in Position of Price-Setter

Published November 16, 2007 in the Financial Times From Mr Warren Mosler. Sir, Adrian Binks’ letter “Oil price conspiracy theories get in the way of facts”(November 14) is precisely the response indicated in my letter (November 12); in this case from an energy information service. While Mr Binks’ statements are indeed factual, ...Read More

Oil Price Conspiracy Theories Get in the Way of Facts

Published November 14, 2007 in the Financial Times From Mr Adrian Binks. Sir, Warren Mosler (Letters, November 12), reveals the level of hysteria that affects even intelligent western economists when it comes to oil prices. First, economists need to understand the facts. Saudi Arabian crude oil is sold at prices directly linked ...Read More

Saudis Do Set World Oil Prices – Despite Bold Denials

Published November 12, 2007 in the Financial Times From Mr Warren Mosler. Sir, As crude oil prices continue to rise, the media continue to assume that competitive market forces are behind the increase, including political tensions, weather, supply disruptions and demand pressures. Completely overlooked, however, is the fact that the Saudis post ...Read More

Feds’ budget tricks hide trillions in debt

Feds’ Budget Tricks Hide Trillions in Debt -Scott Burns Every year, tens or even hundreds of billions of dollars are quietly added to the national debt — on top of the deficits that we hear about. What’s going on here? Burns doesn’t get it. When it comes to financial magic, the government ...Read More

Review of Kroszner Speech

Governor Randall S. Kroszner At the Philadelphia Fed Policy Forum, Philadelphia, Pennsylvania November 30, 2007 Innovation, Information, and Regulation in Financial Markets Good afternoon. I am pleased to participate in the excellent annual Philadelphia Federal Reserve Policy Forum to discuss this year’s timely topic of innovations in financial markets. Innovations in financial ...Read More

Re: fed action to alleaviate turn

(interoffice email) > The Fed through it’s SOMA account injected reserves in the > market through a repo operation that included only AGCY > MBS. 8bb for 43 days (1/10/08). > > This should help to keep the spread between GC Tsy and > AGCY MBS GC from widening much further. MBS ...Read More

Re: U.S. $ and oil prices; the T-bill and the fed target rate

(email from Tom @ Laffer Investments) > Looking at this chart of the 91-day T-bill…don’t think > the Fed’s not going to cut rates on December 11th. We > expect .50 bps and more cuts early next year…unless > something changes. The low t-bill rate is due to money funds switching asset ...Read More

Q&A with Kohn

Kathleen Stephansen from Credit Suisse: Just thank you very much for this very interesting speech. Just a question: You alluded to the discount rate and the stigma that it still carries. Would you think that if there was no spread between the discount rate and the Fed funds rate, whether that stigma ...Read More

2007-11-30 US Economic Releases

Summary:Nothing particularly alarming regarding balance of risks.Personal income and spending lower than expected. Questions are whether exports will continue pick up and support gdp, and whether this is weaker than the Fed’s Oct 31 projection. Deflator and core pce also up a touch, and year over year deflator heading north. As Karim ...Read More