December 2010 Monthly Archive

Best of Currency Currents Past: Bubble Theory Battle Royale (November 2009)

Thru the end of the week we will be publishing some of the Currency Currents past we liked …and think still contain some thinking points for markets as we move into 2011… Read more

Fair? Life is not fair; so never say never!

If you are sitting on euro debt issued by a periphery country, and said periphery country decides to pull the plug on its club membership in the single currency, it won’t be fair when the value of your debt denominated in euros, of course effectively guaranteed by the venerable European Union, plunges in value. Read more

All swans are white again.

Jeremy Siegel had an op-ed in The Wall Street Journal this week. And he also did an interview with Reuters. If you don’t know of Mr. Siegel, just know that he is a big-time equities guy. Read more

News. Comments. Chart hodgepodge.

Hodgepodge today … Dollar mostly higher today. Pound taking a pounding on jobs. Seems to be a bit of conversion flow to the idea US growth may be improving and inflation may be a problem for China. Read more

Copper is going up.

Hopefully you know by now. In fact, it would have been nice to know a month ago … or better yet six months ago (or even better yet two years ago!) … Read more

The rumor of hyperinflation is in the air again. We think it’s greatly exaggerated …

Why is this important? Because all the talk of a “bond bubble” is predicated on inflation … if it doesn’t materialize, there is no bond bubble. In fact, we do not think there is a bond bubble. Read more

Plus, today … A lesson from corporate America that may come hard for China.

We yesterday received an email from someone responding to our general perspective on China. While the email addressed most of the factors we already recognized, it did so with a different spin – one that is much more supportive of China and much more fearsome of the future of the US. Read more

Austerity gets pulled for a relief pitcher … still, yields advance on a wild pitch.

Adopting an austerity budget in Ireland — that was the reason for the see-sawing euro yesterday. Read more

China loves to flatter.

In the US we all understand that our esteemed politicians and mega-CEOs love being flattered. And boy have they been soaking up the glory from their decisions to send large chunks of business operations to China over the last 10 years or so. Read more

Goldilocks is alive and well Down Under … but …

A couple of weeks ago we laid out the case for a major top being in place in the Australian dollar. Could we be very wrong? You bet. And the reason would be stock markets blow-off again on a doubling-down of QE2 and continued optimism China will keep the music playing. A plausible bet indeed! But… Read more

It is beginning to look a lot like Oz…

“Close your eyes and tap your heels together three times. And think to yourself, there’s no place like home.” Read more

Stop and catch your breath; maybe even enjoy a croissant.

JR here … when I read over Jack’s line yesterday about “wine-sipping and croissant eating” it made me wonder if I am, in fact, a “big-government socialist.” It also made me think of McDonald’s disgustingly delicious bacon, egg and cheese croissant-wich. Read more