currencies

In a synchronized global economic downturn, the temptation for policy makers is to view economic growth as a zero-sum game and to take policies that, while favourable to domestic constituents, end up 'stealing' growth from elsewhere. The…

Japan's Finance Minister Noda has indicated that he will take advantage of the upcoming G7 and IMF meeting to explain its Sept 15 intervention. While US Fed and Treasury and the ECB did not comment on the intervention, several others did,…

No big surprise from Brazil’s decision to boost the IOF tax on fixed income foreign investment to 4% from 2% previously. This is a pretty strong statement from the authorities that 1.70 is the line in the sand, and if USD/BRL continues to…

It seems pretty clear that we are now entering a new stage of quantitative easing, competitive currency devaluation, and protectionism. Expect to see a number of posts on this later today. But I want to highlight this here in the links post…

Highlights The US dollar rise yesterday looks like a one-day wonder, with the euro returning to the $1.38 area, sterling moving through yesterday’s highs and the Swiss franc at new record highs vs the greenback.  The Australian…

Over the past few days, I have heard from a number of stock market analysts say that this past September's rally in the S&P500 was the best performance since at least 1939. That's 71 years! This afternoon, I heard an analyst describing…

A couple of ECB officials have indicated that when the extraordinary liquidity provisions expire at the end of the end of the year, they will not be renewed.  Officials drew comfort in the recent news that the stock of bank loans…

Highlights The US dollar is enjoying a firmer tone, but has remained confined to its pre-weekend trading ranges.  The euro is the hardest hit and although Nobel prize-winning economist Stiglitz pressed his pessimistic outlook for…

Highlights The US dollar is suffering broad losses. Signs that European growth are moderating or that an Australian rate hike next week is not as easy of a call as it appeared a few days ago has done nothing to dent the persistent…

by Michael Hudson, President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of…