Jack the Pipper

Milton Friedman said, “a central bank can control its exchange rate, it can control its interest rates, and it can control its money supply/inflation. But it can’t control all three at the same time.”

At least that’s how part of a Reuters headline reads this morning, referencing the latest IMF report released this week.

Gradually put in place a managed floating exchange rate system. Apparently that’s what Chinese President Hu Jintao said in a speech at a BRIC summit last week. Smooth, huh?

Is bond worry all wet? I got caught up in the expectation of a surge in long bond yields, which hasn’t materialized. Being in the deflationary camp, it was a dumb assessment on my part. I think the perennial bond worry-warts have it very wrong again. For sustenance on our deflation view we turn to Van Hoisington and Lacy Hunt.

Is bond worry all wet? I got caught up in the expectation of a surge in long bond yields, which hasn’t materialized. Being in the deflationary camp, it was a dumb assessment on my part. I think the perennial bond worry-warts have it very wrong again. For sustenance on our deflation view we turn to Van Hoisington and Lacy Hunt.

Since the break of the Goldman news, CNBC has turned itself into all-Goldman-all-the- time. So, I preface this by saying there isn’t too much left to say, given what we do know now, but it’s just too darn fresh not to say something…

This ain’t your grandfather’s business cycle despite growing confidence about the coming V-shaped recovery.

First, “Do not let the yuan’s exchange rate issue become the scapegoat of U.S. domestic economic problems, including their unemployment,” said a Chinese Ministry of Commerce spokesperson.

We noticed the comment from Jim Chanos, he of hedge fund fame and loudest bear on China. He told Bloomberg that China was on a “treadmill to hell.” I would add, if China becomes the hegemony power we are all on a treadmill to hell, but I digress.

Minus the chance that some lunatic is streaking through your living room, I think the pearls of wisdom in the above quotable can easily be applied to so many real-life situations these days.