money

My last two posts may leave the impression that I believe inflation to be the greatest concern facing the global economy. I certainly believe it is a problem but not the primary one. Deflation is the looming concern and much more…

In the US, the question has to be centered around consumer inflation expectations and what impact this will have on core inflation going forward. In Asia, the question is what impact will rising inflation have on interest rates and goods…

Sovereign Wealth Funds (SWFs), which played such a vital role in the recapitalization of U.S. financial institutions during the first go around, are looking to cut their U.S. exposure.Basically, the U.S. is running an extremely inflationary…

As you know, the CPI registered a whopping 5% yesterday. Year-on-year inflation hasn't been this high since the Gulf War. So much for the 'Great Moderation.' But the increase in inflation begs another question: why are interest rates so…

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent in June, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The June level of 218.815 (1982-84=100) was…

Last month, in a post called 'Chart of the day: real hourly earnings' I said that U.S. real wage rates were lower today than they were a generation ago on the eve of the first oil hock. hat's pretty poor. Today 'UK Bubble' highlights the…

Senator Jim Bunning (R-KY) blasted Fed Chairman Ben Bernanke, who was giving the semiannual monetary policy report before the Senate Banking, Housing and Urban Affairs Committee today. His comments were the sharpest I heard throughout the…

The bear is growling and things are looking grim. Hold on for dear life. Today is going to be ugly. Let's just hope we don't start seeing folks lining up at their local ATM just in case.Where are my gun and kruggerands?

A month ago, the market was rampant with crazy speculation, not about if the Fed was going to raise rates, but when and by how much."Fed Funds futures now imply a near certainty of two 25 basis point rate increases by November."-FT, 10 Jun…

In the Wall Street Journal today, Ted Forstmann, of LBO giant Forstmann and Little fame, has warned that the credit crisis is far from over. Forstmann, who presciently called the bubble in High Yield ad LBO financing twenty years ago, is a…