Market News

3 Ways to Deal with Sovereign Debt

You read about sovereign debt constantly in the headlines, but do you really understand how the advanced economies deal with it? Well, in this very educational issue of Piponomics, I’m going to discuss the ways a country can bring their debt levels back under their control.

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The Return of the Carry Trade?

Not so long ago, in the currency market where traders came out to play, a strategy deemed so profitable garnered mass appeal. Unfortunately, a financial crisis of epic proportions struck that made the strategy profitable no more.

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Another Chinese Rate Hike… So What?

Yes, China raised rates again yesterday, but this wasn’t exactly a surprise. If you’ve been paying attention in class instead of playing Moviecat on your iPhone4, then you’d know that rates hikes are a developing trend by the People’s Bank of China (PBoC)!

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What? Me Worry!

All governments are masters of deception; they prey on our stupidity and nationalism. They are excellent at making us believe their “classic pearls of idiocy.”

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Is Kan’s DPJ Losing Its Touch?

Tsk tsk, it looks like the Democratic Party of Japan (DPJ) is really losing its touch. In the regional elections last weekend, the Japanese public refused to show some love for the DPJ’s candidates. What gives?

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Germany Shifts Its Stance on EFSF

It looks like Germany is now willing to loosen up its purse and increase the scope and size of the European Financial Stability Fund (EFSF). Is Germany stepping up its big brother role, or is it up to something else? Read on to see what Germany wants in exchange for its consent.

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Inflation Woes? Don’t Blame the Fed!

It seems that people grew tired of pointing fingers at the emerging economies and the ongoing conflict in Egypt, because the Fed is now getting blamed for being the culprit for this inflationary mess. But don’t fret, Big Ben is here to defend the Fed!

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Central Banks and Credibility: A Laughing Matter?

It is funny how central banks continue to carry so much gravitas among investors and traders. Perhaps never have central bankers – particularly the Fed – ever [seemingly] lacked so much credibility in the public eye. Maybe it’s the fact that these power brokers have the markets and the economy by the b@||$ – we are at their mercy.

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China’s Growth: Too Good to be True?

Here’s a Chinese New Year special for ya! Early this week I mentioned a few reasons why China’s GDP might be bigger than you think. But since I’m an open-minded kind of guy, I now give you two reasons why China’s GDP could actually be smaller than the reported figure.

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Nobody got anywhere in the world by simply being content.Louis L'amour