Money Is Power

The central bank is still up to its regular shenanigans.  Here’s the proof:

Now, however, is the first time in more than half a century that the average American is both earning less and worth less than four years earlier, at least after inflation is factored in. [Emphasis added.]

Inflation is a sure way . . . → Read More: Money Is Power

The inflation crisis has not ended

The most important measure of inflation in India is the year-on-year change of the CPI-IW index. This time series, for 120 months, is shown above. From 2006 onwards, India slipped into a new phase of macroeconomic instability, where inflation has strayed far outside the informal target zone of inflation at four-to-five per cent.

. . . → Read More: The inflation crisis has not ended

Global Monetary Relief from Asia

The ECB and BOE have shown their intent with their recent aggressive balance sheet expansions and the Fed is trying hard to keep the door open for more QE even as the data in the US continues to defy the general global slowdown.

In Asia however sticky inflation in India, a desire to nail . . . → Read More: Global Monetary Relief from Asia

Random Shots - Fed Outgunned, EMU Outflanked

As I read the latest round-up of comments by Fed officials that they are certainly not ruling out another round of asset purchases I am wondering whether this signals another round of actual quantitative easing by the Fed or whether investors should change their mindset back to before the crisis where it wasn’t the . . . → Read More: Random Shots – Fed Outgunned, EMU Outflanked

The Bernank Says To Ron Paul That Gold Is Not Money

This has to be one of the most ironic and ignorant statement I have heard come out of Washington. The tail risk is with people like Bernanke running the Federal Reserve, Trichet running the ECB, the eurocrats trying to run the rating agencies and politicians trying to design everyone else’s lifestyle.

It appears that . . . → Read More: The Bernank Says To Ron Paul That Gold Is Not Money

Reading the ECB

Question: Which picture and caption best describes the outcome of yesterday’s ECB meeting?

“Read my lips, on n’achetera plus de dette”

“Show me to the trough”

Inquiring minds want to know. As far as I . . . → Read More: Reading the ECB

Big Week, Big Decisions

Well, in case you had not noticed this is a rather big week in the markets so allow me to jump the bandwagon of market participants in dire need of some action after past’s weeks calm before the tempest. I will consequently be featuring Alpha.Sources’ first insta-blogging event which will take place in this . . . → Read More: Big Week, Big Decisions

China Desperate for Gold

Reported by imarketnews.com: Sales by overseas central banks could see a sharp fall in gold prices, the Financial News reported Wednesday, citing Zou Pingzuo, a central bank researcher.

“Investors should be careful about investing in gold. Gold prices could fall sharply because of intensive gold sales by the U.S. and other overseas central . . . → Read More: China Desperate for Gold

Macro Q&A – 20 Questions and 20 Answers

I know this is a cheap shot, but still. Team Macro Man picks up an all time favorite over at MM and asks 20 questions (check this out for other answers) to which I have offered 20 answers.,

Will the 10yr Treasury yield breach 2% this year? When will the Japanese intervene? Will the . . . → Read More: Macro Q&A – 20 Questions and 20 Answers

Fault Lines, by Raghuram Rajan

Raghuram Rajan’s book Fault Lines (Princeton University Press for the international edition, and Harper Collins for an Indian edition with a special chapter on India) is possibly the most thought-provoking contribution in the aftermath of the economic and financial crisis that has engulfed the West after 2007 with significant global repercussions.

The epilogue of . . . → Read More: Fault Lines, by Raghuram Rajan