March 2009 Monthly Archive

SDRs Gaining Steam in the Press

Thomas Griffith was quoted as saying, “The news is staged, anticipated, reported, analyzed until all interest is wrung from it and abandoned for some new novelty.” Read more

Angela sets off a smart bomb!

We expected a major G‐20 bust, and thank goodness it is shaping up to be so. We say that not because we want global economic failure, but because we believed this idea that throwing more money at our problems was only a recipe Read more

G-20 bust in the making?

Does today’s price action foreshadow things to come after the G-20 meeting? Or is it another chance to sell the dollar again at a higher price? Read more

Does Thought-Leadership Equate to Economic Propaganda?

Referencing the Quotable section above, I wonder what “thought leadership” really means. When I hear such a term used to describe any government body my instincts tell me it can’t mean anything positive, regardless of its intent. Read more

Japanese Exports Fall 49.4% in February – Enough said?

“Analysts expressed hopes that the Chinese government’s 4 trillion yuan ($586 billion) stimulus spending package would eventually ease the downturn, which has hammered Asian economies that are heavily reliant on exports for growth,” Read more

China: Aspiring Puppet Master to the World Economy

I pledge allegiance, to the flag, of the United Currency of the World, and to the International Monetary Fund, for which it stands, one Money, more powerful than dollars, indivisible, stealing economic advantages and liberty from all. Read more

me•an•der

-verb (used without object) 1. to proceed by or take a winding or indirect course: The stream meandered through the valley. 2. to wander aimlessly; ramble: The talk meandered on. Read more

Despite Banana Republic cat calls from the usual suspects it’s still only a correction, we think …

The gold bugs are smelling blood. The new global currency crowd is out in full. And of course, just like that, we should all give up our sovereignty to some global policy committee so they can determine monetary policy for all. Read more

Is the yen the canary in the coal mine for a currency analysis?

Growing economic risk in Japan, reflected in the plunge in the Nikkei 225 stock index, seems to be finally hurting instead of helping the Japanese yen. Read more

Still about that risk aversion versus risk appetite theme

Ebb and flow from risk appetite to risk aversion still seems the key driver. Read more

Obama and Rudd in the Same Boat on Economies

Australia – a country made famous to the United States thanks to Outback Steakhouse, Foster’s beer and the Crocodile Hunter…and of course, The Black Swan. Read more

Has a dollar correction arrived?

Our story, as you know, is not a positive one when it concerns the future of the euro. But, that is our story, and it may at times have little to do with the true story–price action! Mr. Price Action is always the final arbiter. Read more

Topping-Off Jack’s Monday Missive; Plus, Dollar Correction Time?

I threw in the Lewitt quote above as a sort of extension to Jack’s Currency Currents missive yesterday. As much as we’re told we need a quick-fix to get the American economy back on its feet, that idea is wrong. Read more

Economic thought is becoming an oxymoron

If you have been following this morning missive for awhile you know we’ve been expecting export models to be crushed on the major secular theme of global imbalances starting to balance i.e. overconsumption in the West being balanced against overproduction in the East. Read more

Jobs Friday – Crap shoot of expectations

This is that time when we try to evaluate the expectations about the expectations, i.e. will the jobless number guess prove too low, high, or be about right. This morning it seems the number is supposed to come in worse than expected. Read more

Traders Said “Down”, But Volatility Said “Not So Fast”

US Dollar Index yesterday touched its highest level in nearly three years. Not since April of 2006 have we seen the buck this strong versus this particular basket of currencies. Read more

Chartage!

Another head shaker it seems. Just when we were warming to the idea of gold and the US$ moving arm in arm, the correlation breaks down or maybe pauses or maybe never was; either way we are now back to the old game of higher dollar and lower gold Read more

Maybe Australia is First Out; Maybe Not.

Worried about your countries currency? The easy solution to your worries: don’t cut rates when the market expects it. Read more

Through!

Do we have a dollar breakout or fake out in the making? It depends on the euro here. The European currencies are lower against the dollar this morning on news that Germany didn’t want to throw its hard earned Treasury at central and eastern European problems.  Read more