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Browsing Category
Political Economy
Chile: “We are very much concerned about what’s happening with our currency”
Manuel Marfán, vice-governor of the Central Bank of Chile, told CNBC Europe Tuesday that the Chileans are concerned about what is happening in the currency markets. He said their first responsibility was to be "good global…
Brazil Raises IOF Tax On Fixed Income Again, Warns Of More Capital Controls
by Win Thin No big surprise from Brazil’s decision to boost the IOF tax again on fixed income foreign investment to 6% from 4% previously. Still, this is a pretty strong statement since it comes just two weeks after it was hiked to…
John Hussman on the Fake Recovery
John Hussman has a piece out today that dissects the current economic environment in two parts. In part one, Hussman puts a spotlight on quantitative easing (QE) and why it is unlikely to have the intentioned effect on the U.S. economy. And…
Emerging Market Capital Controls Event Risk Remains High And Rising
From Win Thin More and more EM policy-makers are complaining about currency strength, and we think it’s only a matter of time before other countries resort to capital controls to help ease appreciation pressures. Chile President…
On The Hypocrisy of Voters: The politics of economics redux
This is from Gallup: Overall, 46% of Americans believe the federal government "poses an immediate threat to the rights and freedoms of ordinary citizens," little changed from the prior reading in 2006. However, during that…
The Fed wants asset price inflation not consumer price inflation
The Fed’s intent is not to create consumer inflation, but rather asset inflation — primarily in the equity market. By pulling longer-term bond yields lower, the Fed hopes that this will alter how investors value equities relative…
China’s Indirect Resource Grab
Here is anther note from Andy Lees of UBS this morning, this time regarding the intra-Asian competition for natural resources with China as the lead actor. Andy writes (links added): You will have seen this morning Vietnam's state media…
The US dollar decline is symptomatic of China’s investment bubble
There hasn't actually been any "QE". You've simply had the promise of QE2 and some attempts within the market to front run the actual implementation of the policy. In reality, QE per se has nothing to do with the…
Scotia Bank: Canadian dollar strength “driven by U.S. efforts to export its years of…
I think it's fair to characterize the situation with the Fed's Quantitative Easing Open Mouth Operations as somewhat out of control. Fears of a disorderly decline in the US dollar are certainly increasing. If anything, the US dollar is…
Scarface: “Say Good Night To The Bad Guy”
Is Al Pacino a great actor or what? Inspired by Paul Krugman's comments about China. I hope Dr. Krugman appreciates the humour. Source: Tony Montana, Scarface (1983) IMDB