monetary policy

Oil prices aren't high because of greedy oil companies or backstabbing middle eastern countries. Oil prices are high because of easy money. That is the message of David Uren in today's Australian. I subscribe to his view but add in peak…

For those of you who have been reading my blog for some time, you'll know that I believe deflation is the longer term threat to the global economy despite the temporary inflationary pressures. However, I did believe that the Federal…

That's the question RBS is asking. In recent research, Bob Janjuah, the bank's credit strategist, advises clients to move to safety in anticipation of potential market volatility. The crux of the matter is inflation and central bank…

Mervyn King correctly assessed inflation risks to be temporary and the downside to come from the real economy. It sounds like he is not hawkish. Chances of a rate cut are down now. I believe the BoE wants some inflation to help do the…

Below is the inside scoop according to famed Washington insider Robert Novak (It remains to be seen whether his sources are reliable). At the bottom is a link to an article from the Telegraph quoting Morgan Stanley's economic team…

No! The Fed is not crazy. Market participants are forgetting that the U.S. economy is still not out of the woods. Moreover, many financial institutions are drowning in writedowns. None of this should be expected to change anytime soon.…

Caroline Baum has a great column at Bloomberg News today about U.S. Dollar policy. The basic thrust of the column was about asking Ben Bernanke to put his money where his mouth is. The Fed can talk all it wants -- about the Dollar and…

Caroline Baum, one of the best financial reporters out there, has a new column today about the Fed. I recommend it highly. The article is about a new book by Robert Auerbach, Professor at the University of Texas, Austin called "Deception…

Today, the Home Builders Federation came out to ask Mervyn King and the BoE to cut rates 50 beeps. The Telegraph reports:Housebuilders are urging the Bank of England to cut interest rates when it makes its monthly decision tomorrow,…

Global financial institutions are deleveraging because they can't build enough equity capital any other way except by going to Asian and Middle Eastern sovereign wealth funds, cap in hand. So, the Fed and the Bank of England (BoE) have…