December 2009 Monthly Archive

Twelve Themes of Christmas (guesses, wishes, and concerns)

The dollar has bottomed on a multi-year basis after a major test in 2009. Interest rates are going higher as this recovery “normalizes” in 2010; we see 5% on the 10-year T-note before the year is done. Read more

Europe Baking its Own Cake

Will the world economy be able to continue its recovery process as global monetary stimulus measures are phased out? Read more

The yen will take back carry trade crown in 2010!

Any dollar bull story must consist of the Mr. Greenback relinquishing its role as carry trade currency i.e. primary major currency borrowed to fund risky asset and other high yielding investments. Read more

Rising relative yield differential is good for the dollar

Last Friday I penned Growth and inflation? Key to our 10 reasons the dollar has bottomed. I hope you believe me now. One of the key points to the dollar move was “Carry trade idea history.” Read more

Good On the Dollar

Well, this is something we haven’t exactly seen in a while. The US dollar is making good on positive fundamental developments; granted it’s being helped along a bit by ongoing worries in Greece. Read more

Monetary Policy and Emerging European Currencies

So we’ve been harping on the rising concerns in Europe and what they may ultimately mean for the euro. But it’s clear that the worries are not confined to the EMU. Read more

Centered on Eurozone

I am looking around this morning and there are all kinds of economic tidbits and news stories that, in isolation, could prove meaningful. But one item is particularly catching my attention … and everyone else’s, it seems. Read more

Keeping a Lid on Volcker Means Keeping a Lid on Risks

In one of several brilliant campaign moves, Barack Obama enlisted the service of several big names to lead his economic decision-making. Why? Well, probably because he realized that he had no relevant experience of his own from which to lead. Read more

Growth and inflation? Key to our 10 reasons the dollar has bottomed

Today’s US price data a bit hotter than expected this morning. China boom numbers out last night. And guess what, the dollar likes what it sees. Read more

Excuse me Mr. Brown, Mr. Sarkozy – say what?

In The Wall Street Journal yesterday, Mr. Brown and Mr. Sarkozy, of Britain and France respectively, penned a piece for WSJ readers. Let’s start with this … Read more

Uht oh–Euro!

ECB fiddles while Athens riots. It just doesn’t work as well as “…Rome burns.” But I think you get the picture Read more

Contributing thoughts …

I’ve included a link at the end of this article where Jack is talking to … discussing the expectations for the US dollar and its counterparts, as well as our perspective on Japan, UK, Eurozone and the potential for global market fallout from Greece. Read more

Is Bob right?

I spoke to my father-in-law this weekend; he called to tell me he is digging through his walls now to see exactly how much inventory of gold he has on hand; his yard sale may begin soon if we see a couple more days like last Friday. Read more


“Houston this morning broke a record with the earliest snowfall ever recorded in the city’s history,” the Houston Chronicle reported. Read more

Eurozone Recession: Over!

A second look at third-quarter GDP today showed the countries that collectively make up the Eurozone escaped that dastardly negative growth thing. Or maybe it’s more accurate to say they collectively escaped recession. Yeah? Read more

Is gold hinting at a global economic earthquake – Protectionism!

Gold may be telling us a story. That story likely goes far beyond the run of the mill US dollar weakness we hear daily; otherwise the US dollar based on pure correlation would be well into all-time new low territory and free fall (not to suggest it can’t get there still). Read more

Phew … I’m Glad that’s Over …

Thank goodness the Dubai default fiasco is finally behind us. A couple days of global market chaos is enough. Now we can go back to our normal routines – buying dips and selling dollars. Read more