June 2011 Monthly Archive

Europe and China: Readers speak

We are fortunate to have some very smart readers of Currency Currents. I learn much from them. JC, a reader of ours, nailed my sentiments toward trading in this market. Read more

If China Saves Europe, then Who Saves China?

China’s real debt level appears to me much larger than anyone seems to know — even the Chinese. This kind of thing happens when you provide stimulus to your economy ranging from 50% to 75% of your entire GDP and allow your banking system to create even more leverage with a multitude of so called “off-balance-sheet vehicles.” Sound familiar to anyone? This movie ended badly during its first run. Read more

Silver to test 200-day moving average? At least?

Continuing along the theme of declining liquidity hitting the metals markets, I share with you a chart of silver I sent to Members of our Options Predator service last week Read more

The Safe Haven Metal? Just ask G. Gordon!

Unless you are either deaf or dead I am sure you have heard the incessantly ubiquitous ‘Buy gold!’ commercials on TV, on the radio, while eating breakfast, riding your bike, getting a cavity filled, etc. etc. etc. Read more

Global linkage headwinds spell r-i-s-k b-i-d

I will be the first to admit it: it is a sad state of global affairs when anyone can believe, as I do, the US dollar can rally in the morass the US finds itself ensconced. To say we are witnessing a global ugly contest in the world of currencies doesn’t do ugly justice. Read more

China and Europe: Overwhelmed.

It looks as though Europe will be somewhat relieved after this week. Crude oil prices have fallen about 8 percent in one week’s time. The high prices contributed to an April trade deficit in the eurozone as the value of imports outpaced exports. Read more

Decision time: are you running with the bulls?

I poked a bit at James Turk yesterday, asking whether he was right to think gold will benefit from a flight-to-safety bid in the wake of a sovereign default. I think he could be wrong. But he is right about something. Read more

Gold: Safety versus Liquidity. Which side are you on?

A saw a prediction today stating that gold will reach $5000 an ounce because of a global supply deficit. Sure there are some industrial applications for gold, but will gold be consumed (and hoarded) to an extent that future mine supply and production won’t be able to sate? Read more

Summers Back with his “How to screw up an economy” playbook

You may know already, but if you don’t: I don’t like Larry Summers. To me he is the poster child for the smarmy Northeastern liberal who thinks he is the Master of the Universe (there are so many of these clowns out there it’s hard to count them all). Read more

ECB Kabuki

I watched European Central Bank chief Jean Claude Trichet on Reuters TV yesterday during his press conference; all I could think was Kabuki. Read more

Aussie: If it is the key risk asset currency, it may be in trouble!

I think we need only look at one chart to understand the vulnerability of risk assets fully-priced for future growth; it is the global purchasing managers’ index and it shows all the major countries turning over that the same time. Read more

Smokin’ … Or Smoke & Mirrors? There’s something peculiar about crude oil …

Quotable “Let me never fall into the vulgar mistake of dreaming that I am persecuted whenever I am contradicted.”                                     Ralph Waldo Emerson Commentary & Analysis Smokin’ … Or Smoke & Mirrors? There’s something peculiar about crude oil … Last week’s … Read more

Warning: “You are entering the land of extremists.”

No, this quote is not referring to the USA … or it would have read “the land of right-wing extremists.” This quote refers to the gold market. Read more

Perception is Reality?

Hmmmm. Interesting to see how US inflation lags outside inflation. But that last bit of research (perceived perhaps based on expectations built from past inflationary periods) seems somewhat at odds with the interpretation of US manufacturing I included earlier. Read more

Risk off the Charts: China’s Investment Dependence and Real Estate

I am going to start off today with something I have shared here before–the China Treadmill: Virtuous to Vicious? I want you concentrate on that highlighted in red, where it says “Investment Dependence.” Read more