money

This is a story about how the ECB move affects individuals. As much as I support the ECB rate hike, one has to remember that real people are very much affected by these policy decisions. This is what makes these decisions difficult.

Recession worries at the heart of Europe deepened as it was revealed that factory orders in Germany declined unexpectedly for the sixth straight month. With inflation and interest rates rising, it seems rather unlikely that Germany can…

I have said that the Fed is dovish and wants inflation to do its job of reducing the economic burden of the massive debt in the United States. Fed Governor William Poole, who just recently left the Fed, has apparently confirmed this. See…

Monetary policy has never been so interesting. With price increases in food and energy causing upheaval around the globe, citizens of the world are crying out for policy makers to get a handle on inflation. Yet, the global banking system…

So after much posturing about inflation and what to do about it, the Fed backed down, and the ECB stepped up to the plate. What the effect on currencies and the bond market will be is anyone's guess. But, given the Fed's rhetoric does not…

Update 4 Jul 2008: see a fuller answer to this question at my new post: The ECB is right and the Fed is wrongThat's the question Ambrose Evans-Pritchard addressed in his blog yesterday. I am firmly in the deflationist camp, meaning…

As I have said in prior posts, I am a bit of a eurosceptic. It is my view that the Euro is a political construct just as the expanded European Union has been and just as the reunification of East and West Germany on a 1 for 1 currency basis…

Ambrose Evans-Pritchard writes in today's Telegraph of the BIS annual report, which is unusually cautious about the global economy. His article makes for sobering reading.Bill White, the departing chief economist at the BIS, in writing his…

Peter Schiff, the investor and author, is a controversial figure. He tells of an America that has lost its way through shedding manufacturing and its habit of saving money. His conclusion is that the U.S. is not a place where he wants his…

The Fed has lost all credibility in the markets. On Wednesday, Ben Bernanke was unable to put his money where his mouth is. Earlier, he jawboned on inflation, trying to match the BoE and the ECB in rhetoric, but his actions speak louder…