The real deflate-gate saga

Tom Brady’s football was better inflated than this global economy. Every day this week we have seen a sovereign nation cheapen its currency. Russia today cut its interest rate by 2 percentage points to “ease” inflation fears. Not sure how a rate cut can subdue inflation, but leave that as it may. Since the Swiss […]

Markets hold no currency

Currency wars are upon us. Jim Rickards in his book “Currency Wars” explains the current state of affairs. As sovereign debt levels explode in the foolish attempt to spur growth, the only tool left in the central banks hand is to devalue its currency, to stave off recession. This leads to the phenomenon of “Beggar […]

Banking on Greek leadership

Greek bond and equity markets are paying the price on Wednesday for the election results from Sunday. As Greek voters chose to turn its back on Brussels and the EU, foreign investors began pulling assets out of the country. The new Prime Minister Alexis Tsipras spoke Wednesday about “radical change” to restructure the Greek bailout […]

Greece fire from PIGS fat

Beware of Greeks bearing gifts. The Greek elections held on Sunday with the Syriza party winning, is another sign that a nationalistic furor may be sweeping the European continent. As the Swiss and Dutch did earlier this month with their currencies, the Greeks voted for a populist party, which wants the Greek economic malaise to […]

State of the Disunion

Knowing of course that President Obama’s State of the Union speech last night was constructed to be more pep rally than a true accounting, I am still scratching my head over his assertion that 2015 turns a page economically for the US. The president spoke in broad terms of how the US has come back after […]