Brazil Cuts Rates to Record Low as Economy Stalls

Another central bank may have it backwards as lower rates turn out to be deflationary and slow things down via interest income channels? Brazil Cuts Rates to Record Low as Economy Stalls May 30 (Bloomberg) — Brazil’s central bank cut interest rates on Wednesday for the seventh straight time to a record low 8.50 percent, […]

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 aggregate demand through […]

Pre Christmas update

The good news is the US budget deficit still looks to be plenty large to support modest top line growth. And as the deficit continuously adds to incomes and savings, the financial burdens ratios continue to fall, and the stage is set for a ‘borrow to spend’, ‘get a job buy a car’, ‘it’s cheaper […]

China Yuan Pledge Suggests Peg to Dollar May Go

Reads to me like they don’t like the yuan strength vs the euro which means it could weaken vs the dollar if they buy euro instead of dollars as suggested below: China Yuan Pledge Suggests Peg to Dollar May Go June 19 (Bloomberg) — China’s central bank said it will allow a more flexible yuan […]

Bloomberg- Millionaires’ Ranks Grow 14%

govt deficits = ‘non govt’ savings: The recovery in wealth last year was a result of resurgent financial markets and increased savings, the report said. The Standard & Poor’s 500 Index rose 20 percent in 2009 and the U.S. savings rate averaged 4.2 percent compared with 2.6 percent a year earlier. >    >   (email exchange) >    […]

My alternative proposal on trade with China

We can have BOTH low priced imports AND good jobs for all Americans Attorney General Richard Blumenthal has urged US Treasury Secretary Geithner to take legal action to force China to let its currency appreciate. As stated by Blumenthal: “By stifling its currency, China is stifling our economy and stealing our jobs. Connecticut manufacturers have […]

China inflation

[Skip to the end] At some point the FDI isn’t enough to hold up the currency and it depreciates as costs of production for exports rise. Time to cage inflation tiger, say experts China Regulator Pledges to Control Illegal Inflows China Property Sales Rise 75.5% to 4.4 Trillion Yuan China Reserve Ratio Increase Not a […]