2011

Investors shunning US debt ‘for whatever reason’ presupposes the outcome. I need to see the steps that get us from 2.25% 10-year rates to 4 or 5% without the Fed actively raising rates because the only way rates are going higher is because…

The bottom line is this: many in Northern Europe see this crisis as the result of the fiscal profligacy of bad actors which were known before the Euro’s existence to be bad actors. All of these countries except Spain have been running huge…

Previous Modern Money primer blog posts were quite general and apply to all countries that use a domestic currency. It does not matter whether these currencies are pegged to a foreign currency or to a precious metal, or whether they are…

As usual, I find Felix Zulauf’s commentary very perceptive. He has been right consistently for the whole of 2011 in predicting where things have gone. What he is saying is that the fundamentals in the west are weak and now that growth is…

It is far from clear that the current level of Estonian CDS prices risk in in any more satisfactory way than they did at the height of the crisis, since membership of the Eurozone has brought with it both positives and negatives. The 0.28%…

The point is EMU is a political construct and unworkable in its present state. The question is whether the Europeans want to take the political steps like Eurobonds or fiscal integration that are necessary to support a stable currency…

Richard Nixon unilaterally closed the gold window 40 years ago today. No longer would the U.S. permit other countries to exchange their dollars for gold and by breaking that link, he ended the Bretton Woods international financial regime…

The first is the size of the ECB bond purchases. Second, the Franco-German summit tomorrow attracts attention. Third, the market continues to pare long Swiss franc positions with the local press suggesting the SNB and government may take…

Philipp Rösler: "Eurobonds wären nicht gut für Deutschland" - Nachrichten Wirtschaft - WELT ONLINE tags: Eurobonds Germany…

Last summer I wrote a post clarifying some points that I have learned about Modern Monetary Theory. The genesis of the post was a gross mischaracterization of Modern Money Theory (MMT) by Paul Krugman in a piece called “I Would Do Anything…