tag:www.babypips.com,2012:/blogs/currency_currents//27 2012-02-08T15:02:45Z With Currency Currents, you can stay tuned-in to our current global-macro view and our analysis of key investment themes driving currency prices. We consistently focus on the key asset classes responsible for the flow of global capital -- including equities, fixed income, commodities and, of course, currencies. Nothing is off limits to us in this free-wheeling look at the markets. Some days you’ll receive ramblings on trading psychology, while other days we may take an academic approach in explaining esoteric economic issues. Ultimately we have one goal in mind: to help you get a handle on the key investment themes driving global capital flow. Because if you know where the money is going, it increases the probability that your position in the market will be a profitable one. tag:www.babypips.com,2012:/blogs/currency_currents//27.7579 2012-02-08T14:54:16Z 2012-02-08T15:02:45Z

I think by most conventional measures, used by most professional investors, European Central Bank Chief Mario Draghi has been a success. He has bolstered the returns for equity funds considerably since his decision to utilize a three-year term, instead of one year, in the ECB recent liquidity injection to European banks.

Jack the Pipper I think by most conventional measures, used by most professional investors, European Central Bank Chief Mario Draghi has been a success. He has bolstered the returns for equity funds considerably since his decision to utilize a three-year term, instead of one year, in the ECB recent liquidity injection to European banks. tag:www.babypips.com,2012:/blogs/currency_currents//27.7540 2012-01-31T15:11:47Z 2012-01-31T15:12:19Z

We got some good feedback from our article on Friday. Below are a few reader comments and our responses. Enjoy. (And keep the comments coming.)

Jack the Pipper We got some good feedback from our article on Friday. Below are a few reader comments and our responses. Enjoy. (And keep the comments coming.) tag:www.babypips.com,2012:/blogs/currency_currents//27.7527 2012-01-27T12:34:12Z 2012-01-27T12:36:55Z

When I hear someone mention China in the midst of a political discussion aimed at understanding our future economic path, I shake my head.

Jack the Pipper When I hear someone mention China in the midst of a political discussion aimed at understanding our future economic path, I shake my head. tag:www.babypips.com,2012:/blogs/currency_currents//27.7519 2012-01-26T15:05:39Z 2012-01-26T15:15:19Z

Once the government stops increasing the quantity of dollars artificially or even slows down the rate of artificial increase in the quantity of dollars, producers supplying goods and services to the spenders of newly created unearned dollars lose a large number of their customers.

Jack the Pipper Once the government stops increasing the quantity of dollars artificially or even slows down the rate of artificial increase in the quantity of dollars, producers supplying goods and services to the spenders of newly created unearned dollars lose a large number of their customers. tag:www.babypips.com,2012:/blogs/currency_currents//27.7511 2012-01-26T04:19:01Z 2012-01-26T06:11:08Z

Interestingly, the news that Japan has finally recorded its first year-on-year trade deficit since 1980--ending an incredible streak of 31 years of surplus (the Miami Marlins, formerly known as the Florida Marlins, could use some of that magic)--fits into the theme of falling global liquidity.

Jack the Pipper Interestingly, the news that Japan has finally recorded its first year-on-year trade deficit since 1980--ending an incredible streak of 31 years of surplus (the Miami Marlins, formerly known as the Florida Marlins, could use some of that magic)--fits into the theme of falling global liquidity. tag:www.babypips.com,2012:/blogs/currency_currents//27.7517 2012-01-24T06:53:41Z 2012-01-26T07:27:09Z

I recently succinctly summarized my view of stocks with the Wily Coyote analogy. I got one very good succinct comment, and I am paraphrasing; I agree with you Jack but you have missed a lot of profit along the way. I can't argue with that. Neither technically nor fundamentally did I expect stocks to break above intermediate-term highs, measured by the S&P 500 cash index at 1292 back on October 27, 2011. But we sure have.

Jack the Pipper I recently succinctly summarized my view of stocks with the Wily Coyote analogy. I got one very good succinct comment, and I am paraphrasing; I agree with you Jack but you have missed a lot of profit along the way. I can't argue with that. Neither technically nor fundamentally did I expect stocks to break above intermediate-term highs, measured by the S&P 500 cash index at 1292 back on October 27, 2011. But we sure have. tag:www.babypips.com,2012:/blogs/currency_currents//27.7520 2012-01-23T16:35:08Z 2012-01-26T16:48:37Z

While China is by no means the only large consumer of crude oil, the country's growth trends have been reason enough to be bullish.

Jack the Pipper While China is by no means the only large consumer of crude oil, the country's growth trends have been reason enough to be bullish. tag:www.babypips.com,2012:/blogs/currency_currents//27.7489 2012-01-20T16:48:10Z 2012-01-20T17:20:39Z

Throughout much of the last two to three years, a key component in our analysis has been the simmering social tension and the potential for one of hundreds of thousands of "mass incidents" occurring each year to escalate beyond the control of Communist Party officials.

Jack the Pipper Throughout much of the last two to three years, a key component in our analysis has been the simmering social tension and the potential for one of hundreds of thousands of "mass incidents" occurring each year to escalate beyond the control of Communist Party officials. tag:www.babypips.com,2012:/blogs/currency_currents//27.7479 2012-01-19T13:56:56Z 2012-01-19T14:12:17Z

I think we are nearing a major Wiley Coyote moment for Mr. Market. Despite recent joy over some of the economic numbers, recession in the US is still very much in play; if so, S&P 500 Index and Crude Oil, seemingly joined at the "risk on" hip joint, seem extended, to say the least.

Jack the Pipper I think we are nearing a major Wiley Coyote moment for Mr. Market. Despite recent joy over some of the economic numbers, recession in the US is still very much in play; if so, S&P 500 Index and Crude Oil, seemingly joined at the "risk on" hip joint, seem extended, to say the least. tag:www.babypips.com,2012:/blogs/currency_currents//27.7472 2012-01-18T16:24:33Z 2012-01-18T16:48:43Z

Michael Pettis is a professor at Beijing University, and one of the best global macro analysts out there, in my opinion. His recent piece, titled, "If no trade reversal now, then when," should be required reading for anyone who wants a clear summary of Eurozone problems without becoming mired in all the stuff of breaking news.

Jack the Pipper Michael Pettis is a professor at Beijing University, and one of the best global macro analysts out there, in my opinion. His recent piece, titled, "If no trade reversal now, then when," should be required reading for anyone who wants a clear summary of Eurozone problems without becoming mired in all the stuff of breaking news. tag:www.babypips.com,2012:/blogs/currency_currents//27.7473 2012-01-13T16:52:07Z 2012-01-18T17:49:26Z

Quotable The Morning Star paled slowly, the Cross hung low to the sea And down the shadowy reaches the tide came swirling free. The lustrous purple blackness of the soft Australian night Waned in the grey awakening that heralded the...

Jack the Pipper Quotable The Morning Star paled slowly, the Cross hung low to the sea And down the shadowy reaches the tide came swirling free. The lustrous purple blackness of the soft Australian night Waned in the grey awakening that heralded the... tag:www.babypips.com,2012:/blogs/currency_currents//27.7412 2012-01-05T16:25:41Z 2012-01-05T16:51:54Z

Hans, a middle-aged German tourist on his first visit to Las Vegas, finds the red light district and enters a large brothel. The madam asks him to be seated and sends over a young lady to entertain him.

Jack the Pipper Hans, a middle-aged German tourist on his first visit to Las Vegas, finds the red light district and enters a large brothel. The madam asks him to be seated and sends over a young lady to entertain him. tag:www.babypips.com,2011:/blogs/currency_currents//27.7365 2011-12-20T19:44:03Z 2011-12-20T20:19:39Z

About fifteen years ago I remember when the guru-in-chief for Morgan Stanley was Barton Biggs. He is a very bright man and has had many investment successes, so don't get me wrong when I share this.

Jack the Pipper About fifteen years ago I remember when the guru-in-chief for Morgan Stanley was Barton Biggs. He is a very bright man and has had many investment successes, so don't get me wrong when I share this. tag:www.babypips.com,2011:/blogs/currency_currents//27.7364 2011-12-19T19:13:55Z 2011-12-20T19:24:45Z

The $50 billion in renewed FX swap lines at the beginning of December was a nice stocking stuffer for the eurozone. And you might recall the recent disclosure of the $7.7 trillion that the Federal Reserve loaned out to global banks to stem the impact of the 2008 financial crisis.

Jack the Pipper The $50 billion in renewed FX swap lines at the beginning of December was a nice stocking stuffer for the eurozone. And you might recall the recent disclosure of the $7.7 trillion that the Federal Reserve loaned out to global banks to stem the impact of the 2008 financial crisis. tag:www.babypips.com,2011:/blogs/currency_currents//27.7340 2011-12-15T06:38:32Z 2011-12-19T11:05:35Z

I find it interesting how complacent many still are regarding Asia, China in particular. But I guess if one vests so much time and effort to wave a convincing story, it is difficult to be objective (guilty as charged).

Jack the Pipper I find it interesting how complacent many still are regarding Asia, China in particular. But I guess if one vests so much time and effort to wave a convincing story, it is difficult to be objective (guilty as charged).