2011

The Chinese 2-5 year swap spread has flattening to 1 basis point. The last time it was so flat was 2008.

While the headline number was well below expectations of 1.8%, what must be noted are the major revisions. Q1 2011 is now reported as +0.4%. That’s a major downward revision which demonstrates that QE2 was in fact doing nothing for growth…

Japan escalates warning on yen rise to protect recovery | Reuters tags: Japan currency FT Alphaville »…

The Chinese will be pleased. Holders of other government liabilities, not so much. If it comes to this, expect it to be negative for economic growth.

This is a polemic on fiat currency. it is long and detailed. But I believe it is both thorough and logical.

A stalemate could mean selective default. However, my sense is that the bonds themselves will be paid first. Other government expenditures will not get paid and that means a hardship for those who expect the money, whether companies doing…

Achuthan proved to be an accurate forecaster of the economy throughout the double dip scare last year. Timing-wise, this dip is similar. I would say, though, Achuthan seems less optimistic this year than last. Take a look.

Economist Robert Shiller spoke with Carol Massar and Matt Miller on Bloomberg Television's "Street Smart" on Tuesday. Shiller sees the likely austerity that the US will see as a result of the debt ceiling debate as negative for housing…

Here’s a good morning video for you. Raise the debt ceiling already.

Market anxiety over the US political gridlock and EZ periphery kept asset markets on the defensive. Lukewarm bond auction in Italy and rise in periphery yields fueling accelerated safe haven activity. The day after Brazil’s new marco…