The Swiss Hammer

The cage fight between the SNB and FX speculators continue with the most recent round seeing the SNB coming out fists flying aiming for a knock-out.

Quote Bloomberg

The Swiss central bank said it’s setting a minimum franc exchange against the euro and will defend the target with the “utmost determination” if needed.The . . . → Read More: The Swiss Hammer

Ian Gordon: Gold Stocks Offer Protection from Financial Storm

Economic cycles, like weather, run in seasons. Longwave Group Founder Ian Gordon explains why he believes the world economy is in the “winter” portion of an approximate 80-year cycle and how the financial excesses of the past 60 years are now being wrung out of the system. Ian also explains how investors can . . . → Read More: Ian Gordon: Gold Stocks Offer Protection from Financial Storm

Big Mac Index

Each year The Economist magazine publishes one of my favorite economic indicators – the Big Mac Index. This year The Economist said,

Our Big Mac index, based on the theory of purchasing-power parity, in which exchange rates should equalise the price of a basket of goods across countries, suggests that the yuan is 49% . . . → Read More: Big Mac Index

Bailout in the Air

With apologies to John Paul Young …

Bailout in the air

Everywhere I look around

Bailout in the air

Every sight and every sound

And I don’t know if it’s just the Irish

Don’t know if we can afford it

But it’s something that I must believe in

And it’s there when I look . . . → Read More: Bailout in the Air

Who is Next in the Eurozone?

The Eurozone seems to be the place where the party never ends these days as one skeleton after the other comes rattling out of the closet. Indeed, one has the impression that history is in the making these days and the only thing we can hope is that it will be for the better.

. . . → Read More: Who is Next in the Eurozone?

The Euro as a Carry Trade Funder … Surprising?

Nothing is so bad, that it isn’t good for something

So goes an old adage in my home country (and I would imagine elsewhere too) and perhaps if hard burdened Eurozone policy makers and investors are finding it hard to find any kind of (positive) silver lining in the current debacle, . . . → Read More: The Euro as a Carry Trade Funder … Surprising?

A Sea of Red

If an ECB in QE mode, €60 billion in cash, €440 billion from a pooled EMU effort and €220 billion from the IMF only lasts a week, then I’d humbly submit that we have a problem.

(Screenshot from Bloomberg, click for better viewing)

It is difficult to say whether it was . . . → Read More: A Sea of Red

The Euro Zone Will Defend Its Money: Experts Hail Resolute Action

“The message has gotten through: the euro zone will defend its money,” French Finance Minister Christine Lagarde told reporters in Brussels early Monday.

With massive resolve after a 14 hour meeting, 16 euro nations agreed to offer financial assistance worth as much as 750 billion euros ($962 billion) to countries under attack from speculators. . . . → Read More: The Euro Zone Will Defend Its Money: Experts Hail Resolute Action

Risk Off?

Well, well … it seems that the Europe may be important after all or at least that the Greek malaise may be spreading. The EUR/USD at 1.29ish, the AUD/USD looking towards 0.9ish, and all things risky in equity land seems to be entering the room of pain …I will leave it to Mr. Bloomberg . . . → Read More: Risk Off?

Euro Gold And The Euro Zone

I had a conference to attend in Southern California last week but the true capstone was a Sunday evening dinner with several readers. Although ‘gold bugs’ may be perceived in their writing as cranky I have found them to be among the most considerate and cultured company. Perhaps it stems from their respect for . . . → Read More: Euro Gold And The Euro Zone