currencies

Regardless of the source of inflation, it is a serious concern for Chinese officials. Chinese history shows that periods of high inflation are associated with social, economic, and political unrest - all things that the central planners in…

The ECB does have the power to end this. They are not doing so for ideological reasons. Let me suggest two scenarios.

Clearly, the Europeans’ dithering has had catastrophic consequences. The extend and pretend strategy has not prevented contagion from infecting the core. So we need to see a response here. In the shorter-term, the Europeans are likely to…

This post explains both the wellspring and the significance of currency sovereignty, something that Eurozone countries gave up to join the single currency.

Tolstoy tells us in the first line of Anna Karenina that "Happy families are all alike; every unhappy family is unhappy in its own way." This is directly applicable to Europe. It is easy to tar all (growing) peripheral countries with the…

As Michael Lewitt says, "the interconnected nature of global financial markets render Europe's problems the world's problems. There is no longer any periphery."

Felix Zulauf sees problems ahead because of private sector debt. Expansionary fiscal policy and deficit spending have allowed the real economy to cope while expansionary monetary policy has helped asset prices. Zulauf sees a pause in this…

It is not clear that there is a political consensus for a stand-alone tax holiday. There may be support for the stand-alone tax holiday as part of a larger corporate tax reform effort. If it is enacted, job growth and capital investment is…

Investors should consider monitoring the euro's risk reversals to compliment the analysis of spot. The current reading suggests the market less comfortable with long euro exposure than the relative resilience in the spot market would seem…

Andy Lees argues insufficient dollars are getting into the system from the US current account deficit to finance the growth in global trade, so the stock of these international dollars is falling relative to the value of world trade. He…