John Mauldin’s Prescription for Avoiding Economic Catastrophe

Best-selling author John Mauldin of Mauldin Economics says the EU is only left with choices that range from bad to disastrous. Meanwhile, Republicans and Democrats will have to hold hands and walk off the cliff together to solve U.S. economic problems. In this exclusive Gold Report interview, Mauldin expands on his comments at . . . → Read More: John Mauldin’s Prescription for Avoiding Economic Catastrophe

After Jackson Hole, Clear Road Ahead?

In terms of forward guidance I think the Fed Chairman’s speech provided little direction, but Friday’s precious metal price action into the close and the various sell side notes that I have seen suggest that this, at least initially, is too bearish a conclusion. The following excerpt from the speech, in particular, was . . . → Read More: After Jackson Hole, Clear Road Ahead?

Has monetary policy in India helped or hurt?

Carlos Vegh and Guillermo Vuletin have an article Overcoming the fear of free falling: Monetary policy graduation in emerging markets, in `The role of Central Banks in financial stability: How has it changed?’, Federal Reserve Bank of Chicago, 2012. They have drawn on this to write a column on voxEU titled Graduation from monetary . . . → Read More: Has monetary policy in India helped or hurt?

The Curious Case Of Liquidity Traps And Missing Collateral – Part 2

In this second part of my take on liquidity traps and missing collateral in global financial markets I would like to respond to some of the talking points set out by FT Alphaville’s Cardiff Garcia (again in response to the much talked about piece by Credit Suisse). Even though blog posts tend to . . . → Read More: The Curious Case Of Liquidity Traps And Missing Collateral – Part 2

The Curious Case Of Liquidity Traps And Missing Collateral – Part 2

In this second part of my take on liquidity traps and missing collateral in global financial markets I would like to respond to some of the talking points set out by FT Alphaville’s Cardiff Garcia (again in response to the much talked about piece by Credit Suisse). Even though blog posts tend to . . . → Read More: The Curious Case Of Liquidity Traps And Missing Collateral – Part 2

China Moves Towards More Easing ...

This may be a targeted and essentially pinpointed move, but looking at the data coming on China in the first quarter of 2012, I think there is plenty more to come as China tries to come to grips with a rapidly slowing economy.

Quote Bloomberg

China boosted rural credit by cutting reserve requirements for . . . → Read More: China Moves Towards More Easing …

Monetary vs. Fiscal Policy

Brad DeLong

University of California (Berkeley) economist Brad DeLong took my late-in-life education on economic issues to a new level. I’ve plenty more to learn, of course, but I enjoyed his discussion.

Here’s a snippet from his article in the Seeking Alpha web site:

In such a setup, the conclusion of Mankiw and . . . → Read More: Monetary vs. Fiscal Policy

Where Are the Handcuffs?

For this blatantly illegal act:

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a . . . → Read More: Where Are the Handcuffs?

The Reality of Central Banks

Karl Denninger:

Make no mistake, the problem does not lie with The Fed per-se.  The Fed’s “low interest rates” are there to permit the profligacy of the government, yet the longer it goes on and the more the government abuses this deadly embrace the further into the coffin corner The Fed and Congress go.  . . . → Read More: The Reality of Central Banks

Gold Volatility Breeds Equity Opportunities: Mike Niehuser

Volatility in the markets isn’t going away any time soon and Mike Niehuser, founder of Beacon Rock Research, expects 2012 to be a year of extreme swings. Niehuser draws parallels to the beginning of 2009, which was a short period of time that produced some very high returns. In this exclusive Gold Report . . . → Read More: Gold Volatility Breeds Equity Opportunities: Mike Niehuser