As the famed ‘QE2′ enters the final day of its existence, we find that – as ever – markets are moving in the manner that causes the greatest possible angst to the greatest number of consensual speculators.

continue reading »

Jim Rogers was interviewed on Bloomberg this morning (29/6/11). He spoke about markets, monetary & fiscal policies, his positions and the next 10 years. See below of the video & summary.

continue reading »

Whether or not one advocates the use of paper money, one cannot help but be impressed (or just startled) by the enduring nature of the current paper money system. Perhaps this enduring nature is due to our collective naivety or perhaps it is a testament to the currency itself: – regardless, the irredeemable pure fiat dollar has persisted for decades. This contrasts with the paper currency systems of the past, for they were typically abandoned within a matter of years. Here, I outline one implication of this ‘stretched-out’ time-frame; namely, that the periods of market stress that lasted weeks or months in previous paper money systems might easily correspond to months or years of financial duress in the current one.

continue reading »

An update of the weekly google insights indicators for 28/6/11. Fears of deflation made ground against worries about inflation over the past week. However, as can be seen on the charts below, concerns about inflation remain elevated.

continue reading »

An update of the global real interest rate charts for 27/6/11. Real interest rates remain mostly negative (and pointing downwards) throughout the world.

continue reading »

An update of the weekly daily treasury statement charts for 26/6/11. If we take the lagged indicators (very) literally, we must conclude that the so-called ‘risk assets’ could experience one more week of downward stress followed by a relief rally lasting a few weeks.

continue reading »

An update of the weekly Federal Reserve balance sheet charts for 24/6/11. In addition, given that the dollar index is ever-so-close to making a higher short-term high, I thought I’d detail our thoughts on the dollar for the coming weeks and months.

continue reading »