- Will the U.S. Deficit Finally Fall Below $1 Trillion?
March 13 2013 4:08 PM
Washington’s series of economic dramas — predominantly the fiscal cliff and sequestration day — have put government spending under the microscope of both political and economic analysts. With the United States Treasury Department releasing its budget for February on Wednesday, the government has given them additional information to mull over and use to formulate a new assessment on the health of the nation.
- Weidmann Criticizes ECB Risks
March 13 2013 8:25 AM
The euro traded steadily at $1.3056 at 8:00 GMT on Wednesday morning despite an interview with Bundesbank chief Jens Weidmann which shook investor confidence in the eurozone. Weidmann reported that the German central bank was setting aside almost 7 billion euros because of the European Central Bank's risky decisions in 2012, namely the still unused bond buying plan.
- Fed's Bubbles Will Slaughter Middle Class
March 12 2013 10:33 AM
When central bankers dedicate their existence to re-inflating asset bubbles, it shouldn't at all be a surprise to investors that they eventually achieve success. Ben Bernanke has aggressively attempted to prop up the real estate and equity markets since 2008. His efforts to increase the broader money supply and create inflation have finally supported home prices, sent the Dow Jones Industrial average to a record nominal high and propelled the bond bubble to dizzying heights.
- Economic Data Puts Eurozone Recovery on Germany's Shoulders
March 12 2013 8:46 AM
The euro remained at $1.30 on Tuesday morning, after gains from hopeful German data were mitigated by poor figures from the rest of the bloc. The Wall Street Journal reported that the Organization of Economic Cooperation and Development showed that in January the Germany had improved in several areas that indicate economic growth for the future.
- World inflation into stock markets, and economic Armageddon
March 11 2013 5:30 PM
This should be ‘New Economic Paradigm – sort of, inflation into stock markets’ but that seems too long. Pushing inflation into stock markets is nothing new really. When money starts devaluing, stocks rise. So we have the worst offenders by order (roughly)
- Is the Euro Zone Economy Showing Signs Of Life?
March 11 2013 12:23 PM
The Organization of Economic Cooperation and Development or OECD revealed that the euro zone economy, which is made up of 17 different nations, caught some wind in January, amid depressing and downbeat projections regarding the state of the financial health of the region. Although slight, a pickup in exports from Germany, the zone’s largest economy, helped carry the rest of the bloc. There is a significant disparity among the countries in the zone, but the indicators reported and calculated by the OECD offer cautious optimism to the region which has been devastated by setback after setback in its efforts to recoup from the debt crisis. The indicators rose from 99.6 to 99.7, following another increase back in December. A reading above 100.00 for a leading indicator means economic growth is set to be above the trend rate, which itself varies widely among large economies, The Wall Street Journal reported.
- Italian Uncertainty Becomes Spanish Profit
March 11 2013 9:01 AM
The euro began the week at $1.30 on Monday morning following questionable comments about a possible Italian euro-exit made by a German politician on Thursday night. Rainer Bruderle from the German Free Democrats party made comments suggesting Italy could leave the euro on a talk show last week. His comments came in response to the inconclusive Italian election which showed the country's increasing opposition to the imposed austerity measures.
- USD Rally 2
March 08 2013 1:13 PM
The Asian currency war is getting started and the USD is probably on a longer term rising trend. I am not worried about gold here either. Other commodities, yeah. The particular problem is twofold. One is Japan’s emerging fiscal crisis, where they are deciding to print money for their 50% fiscal deficits vs. taxes. One is China who is evidently determined to hold the Yuan down from appreciating, even though their masses are starving. Don’t know how else to say that one…
- Euro Reaches $1.31 Following ECB Meeting
March 08 2013 9:18 AM
The euro gained strength following the European Central Bank meeting and reached $1.3119 overnight, its highest value since January. The common currency settled at $1.3093 at 8:43 GMT on Monday morning. The ECB decided to keep interest rates fixed at 0.75 percent and bank President Mario Draghi gave investors confidence with his optimistic statements at the press conference following the meeting.
- ECB offers no helping hand for Italy, says markets calm
March 07 2013 9:36 AM
Markets have settled quickly after Italy's fractured election result and any threat of contagion has been muted, the European Central Bank's chief said on Thursday, suggesting it is in no rush to take any action. Italians delivered a strong rejection of austerity measures at elections last week and left no party grouping with enough support to form a durable government, raising the prospect of backsliding on economic reforms and debt-cutting measures.
- Euro Steady at $1.30 as ECB Meeting Gets Underway
March 07 2013 8:54 AM
The euro held near $1.30 on Thursday morning as the European Central Bank's monthly meeting got underway and speculation about the bank's actions kept investors cautious. The ECB is expected to keep its already record low interest rates fixed at 0.75 percent. However, analysts are predicting that eurozone inflation could continue to drop over the next few months, which would justify a rate cut in the future.
- An ECB Rate Cut May be Justified, but Not Beneficial
March 06 2013 8:57 AM
Questions about the upcoming European Central Bank meeting and Italy's political turmoil kept the euro trading at $1.3051 on Wednesday morning. Thursday's ECB meeting will be closely watched for clues about the bank's intent to cut interest rates. Although most aren't expecting a rate cut at this meeting, many economists claim the economic data from the region would support the decision to make cuts in the future.
- Eurozone GDP Expected To Show 0.6% Drop
March 05 2013 9:11 AM
The euro continued to trade near $1.30 on Tuesday morning as speculation about the upcoming European Central Bank meeting led some to believe there could be an interest rate cut in the future. Italy's political stalemate continued to weigh heavily on the euro's value and create uncertainty throughout the bloc. The country hasn't made any real progress toward establishing any kind of government after the country's elections didn't produce a leader.
- Is the U.S. Becoming a Banana Republic
March 05 2013 9:06 AM
It is sad to say there are just two reasons why the U.S. is not yet a banana republic. The first reason is that the US dollar has not yet lost its world's reserve currency status, which is helping to keep interest rates at record low levels. If the dollar, yen and euro were not involved in a currency war, the dollar's intrinsic decline would become much more evident, causing domestic inflation to soar, and our bond market to immediately collapse.
- Euro falls as ECB rate cut speculation grows
March 04 2013 10:38 AM
(Reuters) - The euro fell against the dollar on Monday as a stream of weak euro zone economic data in recent days fuelled speculation the European Central Bank could cut interest rates sooner than previously expected. Although a Reuters poll last week showed economists expected the ECB to keep rates on hold this Thursday, some strategists said euro weakness would persist on growing expectations bank chief Mario Draghi would hint at future cuts.
- Euro Below $1.30 Ahead of ECB Meeting
March 04 2013 10:02 AM
The euro waned on Monday as the possibility of another Italian vote and a European Central Bank interest rate cut both became more likely. The common currency traded at 1.2996 at 11:04 GMT on Monday morning.
- Peter Schiff - Ben's Balance Sheet Blues
March 01 2013 3:29 PM
During his testimony before Congress this week, Federal Reserve Chairman Bernanke made it a priority to dampen the growing concern that the unprecedented growth of the Fed's balance sheet presents great risks to the economy. There has been a heightened sense even among normally complacent members of Congress that the Fed could spark a precipitous decline in the economy and the financial markets if and when it seeks to "withdraw liquidity" by selling even a minor portion of its bond portfolio (which is projected to swell to $4 trillion by year end). This is a valid concern that I have been discussing for years.
- Is Bernanke Really the Best Fed Chairman?
March 01 2013 1:14 PM
In his recent testimony to Congress, Ben Bernanke unsurprisingly defended the Federal Reserve’s loose monetary policies. The Chairman even pushed back when he was called a dove by citing the consumer price index. However, looking at the bigger inflation picture, the central bank’s track record is anything but stellar.
- Coalition Between Bersani and Berlusconi Seen as Likely
March 01 2013 8:48 AM
The euro held above $1.30 on Friday morning after uncertainty in Italy overshadowed positive data from the Spanish economy. Italy's election results this week gave investors reason to believe the country would hinder the EU's progress toward ending the three year financial crisis. Italians, who are sick of the current course of raising taxes and cutting spending, voted erratically for politicians who promised to do away with many of the austerity measures already in place.
- Peter Schiff - THE FED'S TIGHTENING PIPE DREAM
March 01 2013 8:41 AM
Ben Bernanke claimed before Congress that he doesn't need to sell any assets to unwind the Fed's massive portfolio - he can just let it mature. Precious metals markets are interpreting the Fed's posture as increasingly hawkish. Peter Schiff shows why the Fed not only won't tighten, but why it can't.