currencies

In Peru, populist candidate Ollanta Humala won the most votes in the weekend presidential vote in Peru, winning 29.3% so far with 75% of the ballots counted. By falling far short of the 50% + 1 needed to win, a second round vote will be…

On Saturday I wrote about the Scylla and Charybdis of anchoring inflation expectations, geared toward developed economies in North America and Europe. You tighten too aggressively and you get unwanted disinflation or deflation. You remain…

This topic needs a lot more attention. And I think today's so-called Bretton Woods II fiat system is unstable. Excess money creation and trade imbalances are secular problems that fiat currency has allowed to become destabilizing. If…

Bernanke (and Dudley) have been testifying that inflation is not an issue. But what signs and maps are they reading? Bernanke specifically invokes inflation expectations as being most important, and he contends they are low. They both note…

Some investors are tiring of our cautioning of a “possible correction,” “waiting until you see the whites of their eyes,” and so forth. Some wish the market would stop dithering and just head north into mania territory. Or wish Casey…

Mexico central bank Governor Carstens is sounding very dovish, noting that the economic recovery is not leading to price pressures.  He believes there is enough slack in the economy still to keep inflation near the 3% target. …

S&P upgraded Indonesia’s rating by one notch to BB+, just one notch shy of investment grade. The move puts it on par with the other two agencies, and we think investment grade will be given by at least one of the big three agencies this…

By Win Thin Brazil Finance Minister Mantega announced macroprudential measures today, raising the IOF tax on consumer credit by 150 bp from 1.5% to 3% in order to help limit credit growth. So far, measures already taken are not working…

I was on the Max Keiser show talking to Max about precious metals, currency debasement and hyperinflation. Max was pushing the view that the U.S. was on its way to hyperinflation due to its reckless monetary policy. I argued against this…

By Win Thin Brazilian Finance Minister Guido Mantega announced new FX measures at his press conference, but at first blush are quite underwhelming. The 6% IOF tax on local entities was extended for overseas loans with maturities up to 2…