Goldonomics: The Economics of Gold | read this item
Gold Economics is an art in itself and I think B-Schools should start introducing this as part of their courses. Of special mention should be the study of Gold price suppression and how it is essential for the survival of capital markets. I call it GOLDONOMICS: The Economics of Gold.
Attached is summary of latest demand [...]
This chart ripped straight out of a JP Morgan report update is quite illustrative of the fact that 12 month old correlation with dollar and S&P might just be beginning to end. We could be in for an extended period where dollar may rise along with S&P.
JP Morgan Quoted here:
The euro currently looks stuck below [...]
It is Happening: China are slashing US Treasuries | read this item
For much of last year, macro analysts debated and beat their heads whether China will actually back up its aggressive posture with some action. China in Dec slashed its treasury holding by $34 billion. The numbers for January are not available but I fear they have been net sellers in Jan as well.
Read our earlier [...]
US 30 Year Debt Auction: Trend to failure? | read this item
The latest 30 year bond auction have been dissapointing with some already terming it as a failure. This is an opportune time to analyse the trends in bond markets. There is almost a pall of gloom across the many who understand bond market mechanics and we will try to break down two of the most [...]
Dec 2009 saw one of the sharpest dollar rallies ever. It went like shooting star from 74.5 to 78 before selling of a bit. Just when folks thought that was it, Dollar rose again in Jan 2010 and now sits at 79.4, a level that is hard to believe for most.
The AIG bailout stands at the heart of the unprecedented financial bailout engineered by FED.
The document is part of 250,000 pages of internal documents on the AIG deliberations subpoenaed by the oversight committee. It lists the toxic mortgage bonds that banks insured through AIG.
Those insurance contracts, called credit default swaps, are what the New [...]
Release Date: January 27, 2010
For immediate release
Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating. Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income growth, lower [...]
Naseb Taleb on Bernanke: He has 6 problems | read this item
Nassim Taleb presents a list of six problems that encumber Federal Reserve chairman Ben Bernanke:
1. His education is in tools that aren’t helpful – and he doesn’t know it.
2. He studied the Great Depression, but the current economic environment is not comparable.
3. Bernanke doesn’t recognize that 99% of risk is tied to debt/leverage and the [...]
Russia has corrected the most at 6.33% while Brazil,US,Germany close by with corrections of 5% and more.
The countries that held up are, Guess? Wild guess? Eastern Europe and Asia. We have been time and again speaking about the emergence of Asia and Eastern Europe as the growth drivers of the world while [...]
Goldonomics: The Economics of Gold | 
The euro/dollar dance with S&P | 
US 30 Year Debt Auction: Trend to failure? | 
The Dollar Rally: FED strategy? | 
World Indices strong corrections | 
