deflation

Ireland, the first euro zone country to fall into a recession in 2008, reported today that Q1 GDP expanded by 2.7% from Q4 09.  While the headline is impressive, even if Q4 09 was revised to show a 2.7% contraction rather than -2.3%…

Below is a chart of the ten-year Treasury yield over the last three months. After peaking near 4% in April, it has since dropped to below 3% and currently yields for 2.97%.  This is as abrupt a move as you are likely to see in…

There is nothing preventing the Federal Reserve from buying up any financial asset it so chooses with money it creates out of thin air. In fact, I seriously doubt that the vaunted bond market vigilantes would be able to cause US interest…

This is just in from David Rosenberg: In the discussion about the outlook for U.S. Treasury bonds, the point must be emphasized that supply alone has been an inadequate focus for predicting future price/yield. You don’t have to do much…

Investors are still trying to get their heads around the SNB's preliminary indication that is reserves rose to CHF232 bln in May from CHF153 bln in April.  This represents more than a 50% increase in reserves in a single…

With governments printing money, inflation, now propping up asset prices, will eventually come to consumer prices. First the deflation, then the inflation, I say. Ray Dalio agrees. But, he also has some choice things to say about the…

After the PCE deflator was reported yesterday the Dallas Fed re-jigs it, cutting out strongest and weakest to arrive at a trimmed mean.  By its calculations the PCE deflator rose 0.1% at an annualized basis, which is the result of…

Markets were unimpressed with the size of the just-announced $145 billion rescue package or the ability of Greece to meet the terms. A bailout of all Club Med countries would, according to estimates I’ve seen, approach $800 billion. This…

In my post Koo, White, Soros and Akerloff videos from inaugural INET conference I highlighted four speeches from the recent George Soros-sponsored pow-wow. I have already written up a post based on the one by William White in "The…

Detroit homes sell for $1 amid mortgage and car industry crisis | Business | The Guardian Aides say Coakley will seek reelection as attorney general – The Boston Globe Depression’s Upside – NYTimes.com Bankruptcy looms, Greek PM…