euro zone update- markets yet to discount the discounts

The issues I’ve been discussing over the last year or two while now crystallizing, remain highly problematic. The idea of Greek default transformed from being a Greek punishment to a gift, with the pending question: ‘If Greece doesn’t have to pay, why do I?’- threatening a far more disruptive outcome that is yet to be […]

Now that claims didn’t fall…

Claims didn’t fall, they went up some. So dollar still weak/commodities and stocks still moving up, and bonds only a touch off their recent highs. With the large output gap and unit labor costs well contained, it can be said it’s not so much the dollar is weak but the other currencies strong, particularly the […]


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 tautology from the […]